Main factors responsible for the problem of unemployment in India are :
i. Disharmony between the format of development and employment growth : Structural change occurs along with development and labour force gets fired from agriculture and it shifts on to the non- agriculture sector. Sufficient employment has not been created in the non-agricultural sector of India, so that the additional labour engaged in agriculture is freed and it could be employed in non- agriculture sector. Due to this, hidden unemployment is present in the agricultural sector and when the rural population migrates towards the cities in season of employment, then there also it is forced to face the problems of unemployment and inferior standard of living.
ii. Increase in population and labour supply : Due to sharp decrease in death rate after independence and with the birth rate rising high, the population growth was very rapid. The population increased from 36 crore in 1951 to 121 crore in 2011. The labour force expands along with the growth in population. The spread of education and the desire in women to get employment caused a greater increase in the work force. The growth rate was not sufficient enough to provide profitable employment to this increasing labour force.
iii. Faulty planning : The problem of unemployment was linked to development efforts. Industrial unemployment is on account of growing migration from villages to cities, lack of industrial development and its slow speed of development, while educational unemployment is due to faulty educational system and lack of employment oriented education. Development through planning could not create sufficient employment in the rural areas and this could not make a living in villages attractive for people.
iv. Inappropriate education system : Education is the main tool of human development. The education system should be developed in accordance with the local employment needs. The employers and labour force should make such collective efforts for such education and training, so that unemployment should not be faced inspite of higher education and the valuable labour force of the country does not lie useless.
