Question

What is the main reason unemployment ?

Answer 1

Demand deficient unemployment occurs when the economy is below full capacity. For example, in a recession aggregate demand (AD) will fall leading to a decline in output and negative economic growth. With a fall in output firms will employ less workers because they are producing less goods.

Answer 2

The main causes of unemployment are :-

• Caste system - The work is prohibited for specific castes in some areas . The work isn't given to the person who deceives it but to a particular caste .

• Slow economic growth - India's economy is undeveloped and slow , so it fails to provide employment to the increasing population .

• Increase in population - Constant increase in population has been a big problem as more people are unemployed .

• Agriculture - Large part of the population is dependent on agriculture , but it's a seasonal occupation and provides employment only for few months .

• Immobility of labour - Due to attachment to the family , language , religion , etc... people don't go to far off places for jobs .