Causes of Unemployment | Economics | VNSGU | BCom Sem 6 | HSC | скачать в хорошем качестве

Causes of Unemployment | Economics | VNSGU | BCom Sem 6 | HSC |

Causes of Unemployment in India 1) Slow rate of Economic growth During 65 years of wrong planning the average rate of economic development has remained between 6 and 7 percent per annum. Because the Indian economy is relatively underdeveloped, economic growth is considerably slower than it might otherwise be. This means that as the population increases, the economy cannot keep up with demands for employment and an increasing share of people are unable to find work. The result is insufficient levels of employment nationwide. 2) Reduction in Employment Elasticity One of the main reasons of unemployment in India is reduction in employment elasticity. For Eg in 1950's the employment elasticity of entire country was 0.78 which reduced to 0.69 in 1970's and further reduced to 0.39 in 1980's. This decreasing trend is not at all a good measure to improve the conditions of unemployment in the country. 3) Rapid Population Growth Rate Increase in population have been considerable over the half-century. The country’s overall population is made up of more than 1.4 billion people, second only to that of China. (Now even more than China) 4) Lack of Skills and Training One of the main reasons of unemployment in India is that most of the workers lack any types of skills and training. According to an estimate for around 80% entrants to labour force, there is no arrangements for skills and development or taining. It is observed that only 8% to 10% of total labour force have undergone training. 5) Improper selection of Technology Over-dependence on technology, domestic or foreign, has led to technological unemployment. This is because of less requirement of manual labour to accomplish tasks with greater dependence on machines and technology. 6) Emphasis on capital Intensive production techniques An important factor responsible for slow growth of employment has been the use of capital-intensive techniques of production, even in consumer goods industries where alternative labour-intensive techniques are available. Even before 1991, under the Industrial Policy Resolution 1956, the development of consumer goods industries was left open for the private sector. 7) Defective Education System The present education system in India is faulty and irrelavent because it gives only bookish knowledge. There is hardly any arrangement of providing any technical knowledge or practical training which can be useful for employees in their daily routine work. 8) Weak manpower planning This is a major source of unemployment in India. Problematically, there were no nationwide plans to account for the significant gap between labor supply (which is abundant) and labor demand (which is notably lower). It is crucial that the supply and demand of labor be in balance to ensure that those who need jobs are able to get them; otherwise, many individuals will compete for one job. 9) Low mobility of labour Culturally, attachment and maintenance of proximity to family is a major priority for many Indian citizens. The result is that people avoid traveling long distances from their families in pursuit of employment. Additionally, language, religion, and climate can also contribute to low mobility of labour. As one might expect, when many of those who might otherwise be suited to jobs are unable to travel to reach them, unemployment is magnified. #unemployment #causesofpoverty #economics #bcomsem6 #vnsgu #bcomhonours #tybcomsem6 #himanshunandwani #learnwithhimanshunandwani