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Causes Of Unemployment In India

1. Slow growth process – When a country grows, its production expands, employment also expands. In India, production has expanded and the economy has grown. As a result of this, employment opportunities have expanded. But these opportunities were not adequate enough to solve the problem of unemployment. This has happened because the trend rate of economic growth was quite less than the target. Moreover, economic growth in a developing economy by itself is not guarantee that the problem of unemployment will get automatically solved.


2. Emphasis on capital intensive projects – An increasing importance has been given to capital-intensive projects during the process of planning. In a labour surplus economy, use of automatic machines and other sophisticated equipment is not very justified as it has resulted in large-scale unemployment in the country.


3. Excessive foreign technology – In India, there has been a pronounced liking for foreign collaborations, mostly package deals, comprising technical services, consultancy, design and also equipment. This has brought technological unemployment in the economy, which aggravated the problem.


4. Increase in labour force – Since independence, India was witnessed a rapid increase in population. As a consequence, labour force has also increased at a rapid pace. Moreover, over the years, education among women has also changed their attitude towards employment. A great number of them have also entered the jobmarket. The economy, however, has not been able to meet the challenge adequately and the net result has been continuous increase in unemployment backlog.


5. Inappropriate educational system – India’s education system does not develop human resources properly. It fails to train the people for the jobs consistent with present economic environment. As a result, even the highly educated people in India, fail to get appropriate jobs. There is no correlation between education and employment as far as Indian planning is concerned.

Extent Of Unemployment


1st FYP - 3.3 mn were unemployed

2nd FYP - 5.3 mn were unemployed

9th FYP
- 34–35 mn were unemployed

10th FYP -
It is estimated that at the end of 10th FYP, 70.14 mn peoples will be


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