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EDUindex News

WHY DOES UNEMPLOYMENT STILL EXIST?

 The problem of unemployment is a serious problem which if not cured, leads to poverty. In India, this problem is a quite major one. Currently, a whole of 13.3% of the Indian population is unemployed. Basically, it is a situation where people are willing and able to work but are not getting any jobs due to many reasons. These people include only those who are above the age of 18 years because of the child labor law in India. There are various reasons for this situation to arise. Let’s discuss them.

 

1.SLOW ECONOMIC GROWTH

The actual rate of growth of the Indian economy is always far behind the rate that has been planned in the five-year plans. This has been observed since the past five decades. Due to this, there are low employment opportunities available and hence, a majority of people are left unemployed. The generation of these opportunities could not keep up with the increasing labor force.

 

2.POPULATION EXPLOSION

The rapid growth of the population is another prime reason why unemployment is growing. The human capital in the country is increasing rapidly but the employment opportunities is not growing enough. This leads to a lot of people being jobless.

 

3.UNDERDEVELOPED AGRICULTURE

The antique methods of technology used for agriculture is also responsible for unemployment or underemployment because the population is growing more than the opportunities available.

 

4.FAULTY EDUCATIONAL SYSTEM

The education system in India right now is still full of defects as it does not provide the students with any transformational technical and vocational education. As a result, most of the students are not qualified enough or does not possess the required education skills for many jobs. This again leaves a lot of them unemployed.

 

5.SLOW GROWTH OF INDUSTRY

There is a massive shortage of capital and technology that restricts the industries from growing and developing. This is why they are not able to create more employment opportunities in the country. It is only possible for them to increase this opportunity percentage if their own industry will shine bright since they require more employees. For this, advanced technology is required which is unavailable.

 

6.REDUCTION OF SMALL-SCALE INDUSTRIES

Over the past few years, a large number of small-scale industries in the villages have declined. This is due to the change in taste of the consumers. With the availability of new technology, people have started shifting their choices from traditional products to modern products. This led to the shutting of these small-scale industries due to the lack of demand. As a result, not only people have less employment opportunities but those who did have a job also lost it and became unemployed.

 

7.DEFECTIVE PLANNING

The plans formed by the government did not stop the migration of rural population to the urban population and have also failed to encourage labor intensive technology in the agriculture and industrial sector and as a result, in the rural areas there is less employment opportunities considering everyone tends to move to the urban areas.

 

8.LOW CAPITAL

There is a considerably low growth rate of capital in the country in both the agricultural and the industrial sector and therefore, the employment opportunities is less since these sectors are not able to grow as much as they should.