International Journal for Research Trends in Social Science & Humanities
Volume 3, Issue 6
Nov-Dec 2025, PP 1-3
Unemployment in India - Causes and Remedies
Ranjana Janardan Gawli (Kanjune)
([Link]., M.A. (Economics & English) [Link].)
Deogiri School, Daulatabad [Link]. Aurangabad
Abstract- Unemployment remains one of the most critical socio-economic
challenges facing India today. Despite steady economic growth in recent decades, the
country continues to struggle with providing adequate employment opportunities for its
rapidly growing population. This paper examines the major causes of unemployment
in India, including population pressure, slow industrial growth, dependence on
agriculture, skill mismatch, technological changes, and inadequate education and
training systems. It also explores the consequences of unemployment on economic
development and social stability. Furthermore, the study suggests various remedial
measures such as skill development programs, promotion of small and medium
enterprises, investment in education, encouragement of entrepreneurship, and policy
reforms aimed at inclusive growth. Addressing unemployment effectively is essential
for achieving sustainable development and improving the overall quality of life in India.
Keywords- Unemployment; Indian Economy; Skill Development; Employment Generation;
Economic Growth; Poverty.
I. Introduction
India is a developing economy the nature of unemployment, therefore sharply differ
from the one that prevails in industrially advanced countries. The problem of
unemployment is a global phenomenon, unemployment has been a continuous issue for
years. particularly in India. One of the primary causes of unemployment is lack of
suitable jobs for people specially full time jobs. Full time job opportunities are
decreasing day by day due to part time and casual work.
Unemployment is a situation of joblessness which occurs when people are without job.
Unemployment is a measure of the frequency of unemployment and formula for
calculating the unemployment rate is the number of unemployment people divided by
the total number of people in the civilian labour force. It is very difficult to manage the
economy in high rate of an employment situation. Demand and supply of labou, force
is the part of labour market which is affected by increasing and decreasingof
employment. Some economist have referred to the unemployment as a cause of
imbalance between demand and supply. The migration of the population from rural to
urban settlement leads to unemployment in towns due to increase of labour force
supply.
"India's unemployment rate remain high for the month of November, 2019 at 7.48%
amid lowest labour participation rate of just 42.37%. The unemployment rate fell close
to one percent in November to 7.48% from 8.45% in October, 2019 according to center
for maintaining Indian Economy (CMIE) data".
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International Journal for Research Trends in Social Science & Humanities
Volume 3, Issue 6
Nov-Dec 2025, PP 1-3
Unemployment may be defined as " a situation in which the people is capable of
working both physically and mentally at the existing wage rate, but does not get job to
work."
Causes of unemployment in india
The important causes of unemployment in India are as follows:
1. Increase in population:
Constant increase in population has been big problem in India. It is one of the main
cause of unemployment.
2. Agriculture is a seasonal occupation:
Agriculture is under developed in India. Large part of population is dependent on
agriculture but it provides seasonal employment. This gives rise to unemployment.
3. Defective system of education:
In spite of the increase in educational institutions the number of educated persons have
increased however the education system in India is not job oriented it is largely degree
and marks oriented.
4. Slow rate of growth:
In India the rate of growth of the economy is very poor and even the actual growth rate
lies always far below the targeted rate. This slow growthfails to provide enough
unemployment opportunities to the increasing population.
5. Defective planning:
Defective planning is the one of the cause of unemployment. There is wide gap between
supply and demand for labour. No plan had formulated any long term scheme for
removal of unemployment.
6. Immobility of labour:
Factor immobility is causing structural unemployment and lower wages especially for
manual workers who lose their jobs.
Illiteracy:
Illiteracy is the one of the main cause of unemployment. They have to go to hard work.
Majority of illiterate laborer remain unemployment.
8. Science and Technology:
Now a days science and technology has been tremendously developed. It introduced
many new instrument appliances etc. which results in unemployment.
9. Modernization:
Some industries have been trying to reduce cost of production by introducing a measure
of modernization which result in unemployment.
10. Rush for government jobs:
Many educated youth run behind government jobs due to job profile and security. This
lead to many remain unemployment due to students preparing for government jobs.
Unemployment is a serious issue for any economy. The solution for unemployment is
of course to create new jobs.
Following are remedies (solution) to solve unemployment problem.
1. Change in Education system:
"Education pattern should be completely changed. Students who have liking for higher
studies should be admitted in colleges and university". Emphasis education qualified
engineers should start their own small unit.
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International Journal for Research Trends in Social Science & Humanities
Volume 3, Issue 6
Nov-Dec 2025, PP 1-3
2. Increase in production:
To increase employment, it is essential to increase production in agriculture and
industrial sector. Development of small and cottage industries should be encouraged.
3. More importance to employment programs:
"In five years plan more importance should be given to employment. The programs like
irrigation, road, flood control, agriculture, rural electrification can provide better
employment to people.
4. Population control:
The growth of population should be checked in order to solve unemployment problem,
family planning program should be implemented widely and effectively.
5. Policy regarding seasonal unemployment:
Seasonal unemployment is found in agriculture sector and agro based industries.
To remove it:
a) Agriculture should have multiple cropping.
b) Plantation horticulture dairying and animal husbandry should be encouraged.
c) Cottage industries should be encouraged.
6. Reducing occupational immobility:
Immobility is a cause structural unemployment policies such as apprenticeship schemes
aim to provide the unemployed with the new skills they need to find fresh employment
and to improve the incentives to find work.
7. Rapid industrialization:
One of the remedies of the unemployment situation in India is rapid industrialization.
Increased number of industries will translate into increasednumber of employment
opportunities.
Conclusion
Unemployment is a serious and an important challenge which need to be looked and
removed from the country. Government should implement job opportunities for the
young youth who are willing to work". Plus. There should be more job opportunities in
the rural areas too and a system of giving opportunity of interview. Courses should be
arranged for the youth to motivate even it they aren't employed.
References
1. Business Today (Mudit Kapoor) Monday, December 2,2019)
2. Economic Growth and unemployment (Khem Chand) APIIT Management, Doctor
of Philosophy.
3. Rajesh Tiwari (United College of Education, Greater Noida)
4. India Economy. [Link] Publication (Gaurav Datt, Ashwani Mahajan)
5. Article by Subho Mukher in Economics Discussion.