Hello friends, my name is Gaurav Sharma, and today I will try to tell you the reasons for unemployment in India through this article.
Friends, as you all know that India has more youth than other countries in the world, and there has been a problem of unemployment here. So let's know further about the reasons for India's unemployment.
Causes of Unemployment
Extensive unemployment in rural and urban areas of India is a complex problem due to several reasons, which are explained below:
1. slow pace of growth
The main reason for unemployment is slow growth. The size of employment, often to a large extent, depends on the level of development. Our country has made great progress in all fields during the organizing period. But the rate of increase is much lower than the target rate. It is clear that B.V. Hazari and K. Krishnamurthy has correctly observed the conflict between growth and employment in the initial stage of development, which is the main reason for unemployment.
2. Backward Agriculture
The terrible nature of underdevelopment and unemployment in India is due to backward agriculture, which also lags the nature of work. Agricultural methods or techniques and organization are early and have become outdated. As a result, the productivity of agriculture is less behind per worker or per unit of labor. 70% of the population is explicitly or implicitly dependent on agriculture.
Land sizes are expensive. Institutional reforms such as land reforms, consolidation, landholding limits, and tenant reforms could not achieve the intended objectives due to political and administrative inefficiency and non-cooperative behavior of farmers. Under these circumstances, it is natural for low employment in agriculture.
3. Explosive Population Growth
India has been experiencing explosive population growth since 1951. In fact, the population grew by 2.5% annually. Therefore, the employment situation was adversely affected in two ways, firstly the increase in the number of the labor force and, secondly, the decrease of means for capital formation.
It is estimated that 390 lakh people will be added to the labor force in the Seventh Plan. This fact indicates that the growth of the population in the country is more than the growth of employment opportunities. In the second case, current instruments cannot withstand refraction for savings and investment; hence the rate of capital formation will below.
4. Inadequate and Defective Employment planning
Inadequate and flawed planning is also one of the reasons for the high growth of employment opportunities in the country. Although the process of organizing in the country has been ongoing since the year 1951, it did not contribute to the solution of the problem.
In other words, such policies were not given any place in the plans, such as the formulation of a reasonable real pay rate policy as a tool for generating employment opportunities or promoting labor-intensive techniques in a big way. In fact, very few attempts have been made to use the hellishian variety of surplus labor in rural areas.
5. Poverty:
Almost everyone knows that a person is poor due to being unemployed. Least developed countries are caught in the vicious cycle of poverty, which in turn, greatly affects the employment pattern in the country. Being poor, a person cannot use the existing tools profitably.
6. More Emphasis on Capital Intensive Techniques:
Capital is scarce in India, and labor is available in excess. Under these circumstances, the country should use labor-intensive techniques of production. But where it has been observed that not only in the industrial sector but also in the field of agriculture, there has been more increase in the use of capital in place of labor.
In western countries where there is a large amount of capital supply, the use of automatic machines and other sophisticated equipment is justified, whereas in our country, due to the everlasting labor force, it increases the number of unemployed people. On this basis, the Bhagwati Committee did not recommend excessive use of machines. Apart from this, industrialization is continuously adopting rationalization and scientific modernization. This process requires the replacement of machines in place of the human labor force.
7. Defective Education System:
The education system in our country has also failed to work for the present inter-generational interval. This is the same ancient system that Macaulay started in the colonial period. It only provides general and literary education and is devoid of practical content.
In fact, no real efforts were made to make the economy of the educational system compatible with manpower requirements. Indian education policy prepares only clerical and small-scale workers for government and private companies.
8. Slow Growth of the Tertiary Sector:
The expansion of the tertiary sector, which includes commerce, trade, transport, etc. is limited, what to say about new labor, even the existing labor force cannot provide employment. As a result there is wide unemployment among engineers, doctors, technically trained persons, and other technicians.
9. Labor of cottage and small scale industries (Decay of Cottage and Small Industries):
The past of traditional handicraft was very bright. It was the main means of employment for people other than rural artisans, artisans, and agricultural laborers. Unfortunately, most of the handicrafts in the villages are finished or dilapidated. The reason for this was the harmful policy of foreign administrators. Secondly, they had to face stiff competition presented by machine-made goods. As a result, these workers lost their employment.
10. Fewer Means of Self-Employment:
Another obstacle in the creation of more employment opportunities is that there is no suitable means of self-employment in rural and semi-urban areas of the country. Like the Least Developed Countries, many of our engineers, technicians, and other well-qualified people do not have adequate means of self-employment. He is constantly looking for jobs, but even in the industrial sector, he remains unemployed due to a lack of employment opportunities.
11. Regional Disparities:
Regional imbalance in the country is also a cause of unemployment. Some backward areas face a severe lack of pre-requisite infrastructure, while advanced areas have adequate resources. This inequality is mainly responsible for the slow growth of employment opportunities in backward areas.
12. Defective Social System:
The flawed social system of the country also intensifies the seriousness of the problem. People are still superstitious and illiterate and still consider family planning a major sin, so the population is increasing rapidly. It is becoming difficult to provide food, clothing, and accommodation to this large population. It is far to think about the system of employment.
13. Miscellaneous Reasons:
Apart from the above reasons, there are other reasons which are equally responsible for the problem of excessive unemployment. In recent years, export demand has come down, which has greatly affected industrial production. A large number of workers have become unemployed due to layoffs in factories and some government departments.
Lastly, low capacity utilization, slow growth of small units, lack of availability of raw materials, lack of electricity, fuel, and other supplementary factors have made the inclusion of growing manpower difficult.
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