Q2 of 15 Page 137

Discuss in groups and answer the following:

Explain the main causes of unemployment in India.


Major causes of unemployment in India are:


• Jobless Growth


India has recently witnessed the jobless growth. After the post-liberalisation period, India has witnessed the economic growth is mainly based on manufacturing and service sector. The least development in the primary sector has led to many job losses and has failed to create a job according to the population.


• Increase in the labour force


The increase in the population has led to the increased labour force to the local market. Due to the increase in population mainly led to an increase in disguised unemployment.


• Inappropriate technology


Increase in the technology in agriculture and industries have led to minimizing the use of labour.


• Dependence on agriculture


Since agricultural work is seasonal and over-dependence in the agricultural sector has led to labourers unemployed for more than 3 to 4 months which is offseason in agriculture.


• Lack of mobility in labour


Labour mobility is very low in India. Because of their family loyalty, people generally avoid migrating to far-off places for work. Factors like the diversity of language, religion and customs also contribute to low mobility.


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