Unemployment can be defined as a situation where all the able and willing persons are unable to get a job to sustain their life.It is very acute in our country.There are various reasons for it.

Reasons for Unemployment

i)Illiteracy: It is the most important and primary reason for unemployment in our country.Moreover we do not have adequate educational facilities in rural areas.Poor parents are not willing to send their children to school as they think
that they are a source of income for their family.We also have a defective education system.A greater stress is laid on general education than vocational training.This type of education is neither job oriented or skill oriented.Thus the country has a large number of educated unemployed.

ii)Technology:Technology is also a major cause of unemployment especially in agricultural sector.Machines can perform the job of many persons in a short span of time and in a better way.A large number of people became unemployed when computers were introduced in our country by Rajiv Gandhi.It lead to wide scale protests from all over the country.

iii)Population Growth:The employment growth in our country could not keep up pace up with the population growth.It has also resulted in underutilization of our resources.Eventually,investments and savings in our contry has reduced considerably.Thus the major sectors have failed to provide job to all the people.

iv)Social and Cultural factors:It has generally been seen that people do not want to leave their family and work at distant places.Ina joint family,individuals have a tendency to neglect work as they want to spend their life on the income of other family members.

Consequences of Unemployment

i)Loss of human capital:When a country has a large number of educated unemployed, it looses the opportunity to utilize their talents.Thus the per capita income of the country remains low and there is a low level of economic development.

ii)Poverty:Unemployment deprives a person of all sources of incomes.Thus he is not able to sustain his life and has to depend on others.Sometimes it also compels him to commit suicide as he is unable to pay the large amount of loan he has taken.

iii)Social Problems:Unemployment give rise to all sorts of evils like thefts, robbery, corruption, smuggling, gambling etc.A person resorts to all kinds of dishonest means when he finds it impossible to earn his living in the right way.

iv)Exploitation of Labor:Greedy traders exploit the unemployed persons for their gains.They provide them the minimum possible salary and make them work for almost 20 hours a day.

v) Dis-savings:When unemployed persons do not have anything to spend they utilize their past savings and spend it over time.It results in low rate of capital formation in a country.

Measures to reduce Unemployment

i)Population control:India has to put a check on its rising population if it want to solve most of her problem.It is essential so that the additional jobs created do not fall short of new entrants to the labor market.

ii)Reform in the education system:There should be vocationalisation of education.Efforts should be made to shape the skills of the individuals so that they can be put to practical use.

iii)Self Employment schemes:In India more than half of the population is self employed in trade, transport, cottage industries,etc.Hence government should take some measures to develop self help centers.

iv)Policy towards Seasonal unemployment:In India most of the people are engaged in agriculture which is a highly seasonal work.Hence they become unemployed during the rest of the year.Hence steps should be taken to promote allied activities like animal husbandry, dairy farming, horticulture etc.Cottage industries should be developed to help them during non seasonal periods.

v)Rapid Industrialization:More industries should be set up to generate employment opportunities.

INDIA CAN PACE UP ITS ECONOMIC DEVELOPMENT IF IT SOLVES THE PROBLEM OF UNEMPLOYMENT.

Unemployment in our country.

Reasons for Unemployment

Consequences of Unemployment

Measures to reduce Unemployment

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