What is unemployment? explain its causes.

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Meaning:

Unemployment is a situation characterized by the existence of those able bodied person who are willing to work but have to do without a job that may yield them some regular income. Unemployment may be defined as state of affairs in a country where there are large number of able bodied persons of working age who are willing to work but cannot find work at the current rate of wage level. The causes of unemployment are.

Causes of unemployment:

  1. Rapid rate of population growth: The rapid rate of population growth has been the main cause of increasing unemployment in the country. It has been estimated that 2.5% annual rate of population increase about 4 million fresh entrances are being added to the labor force. This is too big a number to be provided gainful employment at the present rate of growth of economic.
  2. Slow economic growth: Unemployment has persisted because the rate at which our economy has grown under the plan is very slow. If the rate of growth had been sufficient that is if trade industry, transport etc has registered a higher rate of development may have been almost solved.
  3. Lack of funds to invest: The reason for unemployment is that we have not been able to accelerate our economic growth sufficiently to observe all the new entrants to the labor force. This is due to lack of investment fund.
  4. Use of inappropriate technology: In our development plans, more attention has been given to capital intensive rather than labor intensive industries which provide more employment opportunities.
  5. The backward character of Indian agriculture: The underlying cause for the colossal rural unemployment and under employment is the very heavy pressure of population on land and the backward nature of our farming. as a result agriculture cannot provide employment opportunities for the far too numerous rural population.
  6. Immobility of labor: People are reluctant to leave their native place and relatives. They cling to land even though cultivation may be unprofitable as a result; they remain in a state of unemployment or under employment.
  7. Seasonable nature of agriculture: Labors do not have work throughout the years since the percentage of the lucky one who manage to get some work in the off season is quite low, the incidence of seasonal unemployment in the agriculture is obviously very high.
  8. Inappropriate education system: Training facilities in India are also not sufficient to make the idle worthy. The Indian universities are producing the graduates. This system of education in the country being too literacy oriented does not make the educated fit for employment in industry and trade etc.
  9. Rationalization: Some industries have been trying in recent year to reduce cost for introducing measure of rationalization and modernization this obviously result in retrenchment and unemployment.
  10. Difficulties in foreign exchange: Serious foreign exchange difficulties let to impact restriction and large extended not only to non essential consumer goods but also to machinery and raw materials for industry. As a result the rate of increase of industrial production has not been adequate to absorb the growing labor force.

also read: explain the measures to remove poverty in India.

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