Unemployment in India

Unemployment refers to a situation where all able and willing persons may not find jobs or activities which provide them a means of living. India has a population of 136 crores (in 2021) and almost 7% of its population is unemployed that is 95 million which is a subject of concern.

Causes of Unemployment:

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1. Slow growth process: – The Indian Economy is underdeveloped and its growth rate is very low. Slow growth rate fails to generate employment opportunities for the rising labour force.

2. Rapid growth of population: – constantly rising population has been a grave problem in India. It is one of the principle factors contributing to unemployment.

3. Emphasis on the capital intensive projects: – An increasing significance has been given to capital intensive projects during the process of development. In a labour surplus economy, the use of automatic machines has resulted in large-scale Unemployment.

4. Agriculture a seasonal occupation: – Agriculture is under-developed in India and offers seasonal employment. Its seasonal character does not provide stable jobs to the farmer throughout the year.

5. Mobility of labour: – Mobility of labour in India is very low due to a variety of families and social constant. People are not interested in moving too far from an area even when jobs are available there.

Effects of Unemployment:-

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1. Rise in Poverty: – An unemployed person is dependent upon others for satisfying his basic needs in this way unemployment leads to Poverty.

2. Loss of Human Resource: – In an unemployment situation able and willing people do not get work. It is a waste of manpower and a loss of valuable human resources.

3. Social Unrest: – Unemployment adversely affects the peace of society, and it leads to thefts and robberies, etc.

4. Low standard of living: – Unemployed persons are not able to meet their requirements of day-to-day life. It lowers the quality of life.

5. Low productivity: – Due to lack of Employment opportunities, results in low productivity. It leads to low per capita output which causes low per capital income i.e. low growth rate in the economy.

Suggestions to solve the problem of Unemployment in India:-

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1. Increase in production: – To increase employment it is essential to increase production in the agriculture and industrial sector, development of small and cottage industries should be encouraged, Foreign trade should be encouraged. The greater the production greater is the demand for labour.

2. Help to self-employed persons: – Around 43.9% of people in India are self-employed. Govt. should provide facilities of Credit, Marketing, Raw material, technical training, etc. to self-employed persons.

3. Technique of production: – Technique of production should suit the need and means of the country. Labour Intensive technology must be encouraged in place of capital-intensive Technology.

4. Importance of employment program: – Such programs should be given greater importance in plans which are likely to raise employment. The program which serves the above objectives are irrigation projects, road construction, flood control, forestries, rural electrification, soil conservation, and development of the small industry.

5. Educational Reforms: – There is an urgent need for educational reforms in the country. Emphasis should be placed on vocational education. The no. of institutions providing employment and guidance should be expanded and their activities be coordinated with employment agencies.

Govt. policies and programs for generating employment:-

These are some recently launched campaigns by the govt. of India to generate employment, hoping that they would generate abundant employment opportunities, particularly those through ‘self-employment’.

1. Skill India: –

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Skill India (National skills development mission of India) is an initiative by the Government of India. This program is launched by Prime minister Narendra Modi on 15 July 2015. Its objective is to provide skills to the youth of our country so that those skills will help them to find employment for their means of living.

2. Make in India:-

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Make in India is a step by the Government of India to encourage companies to manufacture their products in India. This program is launched by prime minister Narendra Modi on 25 September 2014 to develop India as a manufacturing hub, increase the growth rate of India’s manufacturing sector by 12% to 14% per annum, and generate millions of jobs by the year 2022.

3. Start-Up India:-

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Start-up India is an initiative of the Government of India to develop India as an entrepreneur country this program is launched by Prime minister Narendra Modi on 16 January 2016. Its objective is to provide funding, loans at low interest, and facilities like marketing, technical training, etc. to new start-up ideas. These startups can help generate employment opportunities.

“In this world of Unemployment,

we need more & more JOB CREATORS,

than JOB SEEKERS

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