Causes of Unemployment

Unemployment is described as “a condition in which a person is physically and cognitively capable of working at the current wage rate but is unable to find work.” In other words, only involuntary unemployment is considered unemployed Where a person willing to work at the current wage rate does not receive a Job.

Unemployment in India

Unemployment in India is a complicated issue with many overlapping and interrelated causes; nonetheless, certain important causes may be identified. This article will attempt to describe and outline these causes, which range from macro-level (e.g., overall slow economic growth and population increases) to micro-level (e.g., government policies) (e.g. the joint family system of business). Understanding the causes of unemployment is the first step toward resolving this enormous issue and fostering a society where everyone can find a stable source of income for themselves and their family.

Causes of unemployment

Open unemployment occurs when a big portion of the workforce is unable to find work that will provide them with a steady income. The number of unemployed people can be seen and counted in this sort of unemployment. The labour force expands at a quicker rate than the economy’s growth rate. As a result, not everyone can find work.

There are various types of causes that leads to the unemployment that are given below :

Caste system 

Certain types of jobs are restricted for members of certain castes in some places. As a result, work is frequently allocated to members of a certain community, rather than to individuals who actually deserve the job and possess the necessary qualifications and this leads to an increase in Unemployment. The caste system, a social stratification structure that has the ability to infiltrate practically every area of Indian life, is a major contributor to unemployment. Certain types of jobs are restricted for members of certain castes in some places. As a result, labour is frequently provided to members of a certain community rather than to those who actually deserve the job—those who possess the necessary talents. As a result, unemployment rates are rising.

Inadequate economic growth

This modest development isn’t providing enough job possibilities for the growing population. This means that as the population grows, the economy will be unable to meet demand for jobs, and an increasing number of people will be jobless. As a result, employment levels across the country are insufficient.

The economy cannot keep up with demand for jobs as the population grows, and a rising number of individuals are unable to find work. As a result, employment levels across the country are insufficient.

Growing population

India’s population is expected to surpass China’s by 2024, making it the world’s most populated country for the rest of the twenty-first century. Because the country’s economic growth cannot keep up with population increase, a growing proportion of the population is unemployed.

Absence Of economic planning

There have been no national strategies to account for the considerable imbalance between labour supply (which is plentiful) and labour demand, which is problematic (which is notably lower). It is critical that labour supply and demand are balanced in order for those who need jobs to be able to find one; otherwise, many people will compete for a single job.

Lack of required skills

According to a survey, 33 percent of India’s educated youth are unemployed due to a lack of future skills. Even after leaving school, millions of students in our country lack hands-on learning and solid practical expertise. The educational system now undervalues physical, unskilled labour. Physical labour is despised by the educated. As a result, after completing formal education, the rural adolescent looks for sedentary work in a government agency or a private firm. They are incapable and unwilling to work in the agricultural sector. As a result, the current educational system exacerbates rural unemployment.

Conclusion

Unemployment is a condition in which people are unable to find a job despite their willingness to work. This can be due to a variety of factors, including a lack of education and training, a labour demand-supply mismatch, and so on. It has the potential to turn a country’s demographic dividend into a demographic burden. People resist migrating to far-flung locations of work due to various causes such as family loyalty. Higher unemployment results from lower mobility. The majority of educational curricula are theory-based, resulting in a mismatch between occupational training and the contemporary economic situation.