CAUSES OF UNEMPLOYMENT IN INDIA

Ø  CAUSES OF UNEMPLOYMENT
INDIAN ECONOMY

o    SHASHI AGGARWAL ECONOMICS AND LAW CLASSES

Ø  TREND OF UNEMPLOYMENT

1. UNEMPLOYMENT RATE IN INDIA INCREASED FROM 6. IN 2018 FROM 3.52% IN 2017. UNEMPLOYMENT RATE IN INDIA AVERAGED 4.12 % FROM 1983 UNTIL 2018 REACHING TIME HIGH 8.30% AND RECORD LOW OF 3.41% IN 2014.
2. INDIA HAS 31 MILLION JOBLESS PEOPLE
3. THE NUMBER OF JOBS IN THE COUNTRY ALSO FELL FROM 406 MILLION FROM 406.7 MILLION IN 2017-2018.
4. MORE THAN 50 OF INDIA’S WORKFORCE IS DEPENDENT ON AGRICULTURE BUT JOBS SUFFER DUE TO VOLATILITY IN THE SECTOR,DROUGHT,UNSEASONABLE RAINS,BAD CROP ETC
5. SOFTER RECRUITMENT IN THE CORPORATE SECTOR WITH JUST 2-3% AND ALSO JOBS IN PRIVATE SECTOR HAVE ALSO NOT INCREASED

• CAUSES OF UNEMPLOYMENT

1. POPULATION EXPLOSION:-HIGH RATE OF POPULATION GROWTH SINCE THE EARLY 1950 AND THE CONSEQUENT INCREASE IN ITS LABOUR FORCE. IT WAS ESTIMATES POPULATION GROWTH RATE IS 2.5 PER CENT AND NEARLY 4 MILLION PERSONS ARE ADDED TO THE LABOUR FORCE EVERY YEAR

2.     THE CASTE SYSTEM:-IN SOME LOCATIONS CERTAIN KIND OF WORK IS GIVEN TO PARTICULAR CLASS

3. UNDERDEVELOPMENT:-INDIAN ECONOMY THE CONTINUE TO BE UNDER DEVELOPED EVEN AS A VAST QUANTITY OF UNDER UTILIZED NATURAL RESOURCES ARE PREVAILING IN THE COUNTRY. THE SCALE AND VOLUME OF ECONOMIC ACTIVITIES ARE STILL SMALL. THE NON AGRICULTURAL SECTOR ESPECIALLY WHICH COULD GENERATE EMPLOYMENT IS GROWING VERY SLOW. SLOW RATE OF CAPITAL FORMATION IS ALSO THE REASON FOR SLOW GROWTH OF AGRICULTURE,INDUSTRY AND INFRASTRUCTURE.
4. INADEQUATE EMPLOYMENT PLANNING:-IN THE FIRST PHASE ECONOMIC PLANNING EMPLOYMENT OPPORTUNITIES COULD NOT INCREASED ADEQUATELY. WEAK MANPOWER PLANNING. HUGE IMBALANCES IN THE SPHERE OF EDUCATED AND TRAINED PEOPLE.
5. SLOW RATE OF GROWTH : IT HAS RESULTED HUGE AND LARGE BACKLOG OF UNEMPLOYMENT AT THE END OF EACH PLAN
6. BACKWARDNESS OF AGRICULTURE
7. INSUFFICIENT INDUSTRIAL DEVELOPMENT:-LOW CAPITAL FORMATION,LACK OF PROPER TECHNOLOGY,SCARCITY OF INDUSTRIAL RAW MATERIALS,SHORTAGE OF ELECTRICITY AND LACK OF LABOUR INTENSIVE INVESTMENT COULD NOT GENERATE SUFFICIENT EMPLOYMENT OPPORTUNITIES
8. PREVAILING EDUCATION SYSTEM:-IN THE ABSENCE OF VOCATIONAL EDUCATION AND PROFESSIONAL GUIDANCE THESE HUGE NUMBER OF EDUCATED YOUTHS CAN NOT AVAIL THE SCOPE OF SELF EMPLOYMENT LEADING TO GROWING FRUSTRATION AND DISCONTENTMENT AMONG THE EDUCATED YOUTH,
9. CAUSES OF UNEMPLOYMENT
10. AGRICULTURE IS A SEASONAL OCCUPATION:-AGRICULTURE IS UNDER DEVELOP IN INDIA. IT PROVIDES SEASONAL EMPLOYMENT. LARGE PART OF POPULATION IS DEPENDENT ON AGRICULTURE,
11. FALL OF COTTAGE AND SMALL INDUSTRIES:-THE INDUSTRIAL DEVELOPMENT HAD ADVERSE EFFECT ON COTTAGE AND SMALL INDUSTRIES.
12. SLOW GROWTH OF INDUSTRIALIZATION
13. LESS SAVING AND INVESTMENT

14. WITH THE GST COMING IN THERE HAS BEEN UPHEAVAL IN THE SMALL AND MEDIUM SIZED ENTERPRISE WHICH WAS A MAJOR ABSORB ER OF LABOUR ALL THROUGH THE YEARS.