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Various causes of unemployment in India

The causes of unemployment in India are as follows:
  • Growth without adequate employment opportunities: In India, the economic growth has been inadequate and an adequate number of jobs could not be created. During 1950-80, GDP growth rate was as low as 3.5% p.a. and this lower growth rate did not create many jobs. Though in 1980s, growth rate has been around 5-6%, but the job creation did not improve much.
  • Growing population: The rate of population explosion in Indian economy has added to the labour force, but job opportunities have failed to keep pace with the rising population.
  • Increasing technology: With the industries increasingly substituting capital for labour, more and more people are unemployed.
  • Inappropriate education system: Students fail to get jobs due to in appropriate and impractical education pursued in India.
  • Faulty employment planning: The 5 year plans in India have not been designed for employment generation. It was assumed that economic growth will take care of the problem of unemployment, but adequate jobs have not been created, thus leaving the problem unsolved.

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