what are the causes of unemployment in India
Answers
The main causes of unemployment in India are:
- Slow Growth of Industrialisation
- Causes of under employment
- Joint Family System
- Increase in population
- Caste system
- Slow Economic Growth
- Agriculture is a Seasonal Occupation
- Fall of cottage and small industries
- Bad Government
Hope it helps you
The following are the main causes of unemployment:
1. The caste system
The caste system—a structure of social stratification that can potentially pervade virtually every aspect of life in India—is a major factor in generating unemployment. In some locations, certain kinds of work are prohibited for members of particular castes. This also leads to the result that work is often given to members of a certain community rather than to those who truly deserve the job—those who have the right skills. The result is higher levels of unemployment.
2. Increased population growth
Increases in population have been considerable over the half century. The country’s overall population is made up of more than 1.3 billion people, second only to that of China. Moreover, India’s population is predicted to exceed China’s by the year 2024; it will, furthermore, probably be the most populous country for the entirety of the 21st century. As the country’s economic growth cannot keep up with population growth, this leads to a larger share of the society being unemployed.
3. Slow economic growth
Because the Indian economy is relatively underdeveloped, economic growth is considerably slower than it might otherwise be. This means that as the population increases, the economy cannot keep up with demands for employment and an increasing share of people are unable to find work. The result is insufficient levels of employment nationwide.
4. Slow industrial growth
Similarly, while industrialization has been considerable, its rate of growth is nevertheless fairly slow. There is a major emphasis on industrialization nationwide, which has elevated the Indian economy; however, industrial growth continues to generate relatively few new jobs overall as compared to increases in population.
5. Seasonality of agricultural occupations
Agriculture offers unemployment for a large segment of the population, but only for several months out of the year. The result is that for a considerable portion of the year, many agricultural workers lack needed employment and income. More stable sources of income are essential to permit fulfillment of basic needs.
6. Joint family system
Large family businesses may often involve family members who depend on the family’s joint income but do not contribute substantive work. Although these individuals may appear to be working, they may not actually add anything to the business. The result is that their unemployment is “disguised.” Thus the joint family system may contribute to low productivity. However, this system also offers numerous positive benefits as a social and economic safety net in which those who cannot find work elsewhere can derive support from their families and contribute to their business. It’s likely, then, that this system may offer more benefits than drawbacks.
7. Loss of small-scale/cottage industries
Industrial development has made cottage and small-scale industries considerably less economically attractive, as they do not offer the economies of scale generated by large-scale mass production of goods. Oftentimes the demand for cheap, mass-produced goods outweighs the desire for goods that are handcrafted by those with very specific skill and expertise. The result is that cottage and small-scale industry have significantly declined, and artisans have become unemployed as a result.
8. Low rates of saving and investment
India lacks sufficient capital across the board. Likewise, savings are low and the result is that investment—which depends on savings—is also low. Were there higher rates of investment, new jobs would be created and the economy would be kickstarted.
9. Shortage of means of production
Production is, quite simply, limited by the amount of materials, equipment, and energy available to fuel it. Shortages of raw materials, facilities, fuel, and electricity means decreased production of goods, which logically results in decreased availability of jobs.
10. Ineffective (or absent) economic planning
This is a major source of unemployment in India. Problematically, there were no nationwide plans to account for the significant gap between labor supply (which is abundant) and labor demand (which is notably lower). It is crucial that the supply and demand of labor be in balance to ensure that those who need jobs are able to get them; otherwise, many individuals will compete for one job.