India seems to have a giant pool of unemployed people worldwide. The prospect of getting a new job for those who are unemployed will be an essential issue. The unemployed who want new jobs and are willing to get employed are increasingly getting disappointed. This has a grievous psychological impact on their minds that is manifesting itself in diverse ways. The unemployment rate has been rising almost steadily since last year.
The reasons for the unemployment rise are endless. One of the leading reasons is that the economy of India is not seeing a sustained high growth rate because investment is subdued. The manufacturing sector, which creates the top jobs, is growing at a snail’s pace.
The slowdown in infrastructure and industrial sectors, especially the construction sector, and the low volume of IT exports growth has led to only 1.9 per cent year-on-year hiring. It seems that jobs in both the private and public sectors are shrinking. Corporate India is hiring less because of slower than expected recovery.
The following are the leading causes of unemployment:
1. Slow Economic Growth:
Indian economy is underdeveloped, and the crucial role of economic growth is prolonged. This slow growth fails to offer enough unemployment opportunities to the increasing population.
2. Caste System:
In India caste system is prevalent. The work is mainly prohibited for specific castes in some areas.
In most cases, the work is not given to the deserving candidates but to the person belonging to a particular community. So this gives rise to unemployment.
3. Increase in Population:
The constant rise in population has been a big problem in India. It is one of the leading causes of unemployment.
4. Joint Family System:
In prominent families having a big business, many such persons will be available who do not do any work and depend on the family’s joint income.
Many of them seem to be working; however, they do not add anything to production. So they encourage disguised unemployment.
5. Agriculture is a Seasonal Occupation:
Agriculture is underdeveloped in the country. It provides seasonal employment. A huge part of the population is dependent on agriculture. But agriculture being seasonal, includes work for a few months. So this gives rise to unemployment.
6. Fall of Cottage and Small industries:
Industrial development harmed small industries and cottages. The production of cottage industries started to fall, and many artisans became unemployed.
7. Less Savings and Investment:
There is inadequate capital in India. Above all, this capital has been judiciously invested. Investment depends on savings. Savings are inadequate. Due to a shortage of savings and investment, employment opportunities have not been created.
8. Slow Growth of Industrialization:
The rate of industrial growth is slow. Though the emphasis is laid on industrialization yet the avenues of employment created by industrialization are very few.
9. Defective Planning
Defective planning is also one of the causes of unemployment. There is a huge gap between supply and demand for labour. No Plan had formulated any long-term scheme for the removal of unemployment.
10. Inadequate Irrigation Facilities
Due to lack of irrigation, a large area of land can produce only one crop in a year. Farmers remain unemployed or free for most time of the year.
11. Causes of Under Employment
Inadequate accessibility of means of production is the main cause of underemployment. People do not get employment for the entire year due to a shortage of electricity, coal, and raw materials.
12. Immobility of labour
The mobility of labour in India is quite low. Due to attachment to the family, people do not go too far off areas for jobs. Factors like language, religion, and climate are also responsible for low mobility. The immobility of labour adds to unemployment.
13. Expansion of Universities
The number of universities has expanded manifold. As a result of this, white-collar unemployment or educated unemployment has increased.
India also has mostly poor grade jobs, and hence training, mentorship, internship is required for people to get better employment opportunities. Skill certification is a must, along with a focused industrial policy and a national employment policy. There is also a need to foster domestic competition and protect domestic industries against foreign competition. This is necessary because many of our small-scale industries have been destroyed by the massive influx of Chinese products. The government has to be active to promote vigorous export promotion and undertake some import substitution.