CAUSES OF UNEMPLOYMENT IN INDIA

· CAUSES OF UNEMPLOYMENT IN INDIA



1) Excessive population growth :

· Population growth is the most important factors responsible for the employment problem in the country.

· Population of India was 36.2 cores in 1951 when planning started in India.

· According to the latest census conducted in the country the population is about 102 corers. With the population there is a corresponding increase in the lab our supply.



2) Low economic growth :



· The other fundamental reason for unemployment in India is the economic growth in India during the plan period.

· During the period 1951 to 1997-1998 the average growth rate has been around 4%

· Actually we need 7% growth rate for providing employment to the constantly increasing lab our force.

· We can see that the growth is almost half than the required rate.

3) Heavy industry model :



· The 2nd five year plan onwards we have adopted heavy industry model recommended by Dr.MAHALNOBIS with the objective of promoting the growth of heavy industry in the country.

· These industries are highly capital – intensive industry.

· Their unemployment generation capacity per unit capital is highly limited and there for in spite of continuous increasing no. of productive enterprises both in public as well as private sector.



4) Faulty education system:



· Faulty education system is one more reason particularly responsible for the educated unemployment country.



· It provide only liberal education with every year produced a large no. of just literate people.



· However this people do not have any worth while training and vocational qualification if not possible to employee this people in any productive activity.







5) Absence of man power planning:



· This is short term as well as long term planning for archiving equilibrium between demand for supply of education and trend human resource.



· These types of planning have never been serious components of our five year plans.

· There for in India while on one hand millions of people who are illiterate UN trained and having only formal education are searching for job.



6) Modern technology in agriculture:



· While the introduction of new technology in agricultural the problem of rural unemployment has become quite serious.



· This new technology favors’ the use of labors saving Machines like tractor, harvesters, electric pumps and motors etc.













7)Industrial sickness :



· The industrial sickness is fast spreading into all

Industries large and small, private and public sectors.



· The problem is all the more serious in small industries which are generally employments generating?



8)Destruction of cottage industries :



· The cottage industries like furniture, cobbles, handloom etc, have been a major source of employment for the rural population.



· Now these industries are fast disappearing due to rapid growth of modern industries, which provide better and cheaper goods.



9)Inadequate irrigation :



· In India 64% of total agriculture land is without any irrigation.



· Millions of people in India remain unemployed in non monsoon seasons.







10) Poor infrastructure :



· Once of the factored responsible for unemployment is the poor quality of our infrastructure like road, railways, electricity etc.



· The lack of these facilities has restricted growth of industries in many sectors and has not allowed employment opportunities to increase.



11) Poor management of economy :



· Due to a variety of factors we have not been able to manage our economy property.



· The Indian industries and particularly the public sectors industries are having west unused production capacities.