Causes Of Unemployment

S No	CAUSES	EXPLANATIONS
1	High              Population growth	The increase in population of our country during the last decade has raised the unemployment problem in the country. Due to rapidly increasing population of the country, a dangerous situation has arisen in which the labour force has increased but job opportunities are not increased comparatively. The rate of economic growth in India has been slow to moderate, the population growth rate has been very high. Thus, in spite of half a century of economic development, unemployment problem remains alarming.
2	Insufficient Rate of Economic Progress	In india the economic progress is around 4% p.a and pace of growth during 10th plan was nearly 7.8% Although India is a developing country, the rate of growth is inadequate to absorb the entire  labour force  in the  country. The opportunities of employment are not sufficient to absorb the additions in the labour force of the country, which are taking place as result of the rapidly increasing population in India.

3	Absence                                     of employment opportunities                                  in activities                        other than agriculture	As enough other employment opportunities are not available, agriculture is the principal area of employment in our country. A major cause of rural unemployment is the extremely low rate of growth of agriculture. Thus, pressure on land is high,  as about 2/3 of the labour force is engaged in agriculture. Land is thus overcrowded and a large part of the work force is underemployed                and                                           suffer        from                                           disguised unemployment(employed but not contributing to real output).
4	Low     saving             and investments	Due to capital deficiency an underdeveloped economy tends to invest low or invest more comparatively in large scale industries which ultimately leads low income as well as low saving and productivities.
5	Seasonal Employment	Agriculture in India offers seasonal employment; thus agricultural labour remains idle during the off-season. Employment through only one seasonal crop leads to unemployment of 5-6 months.
6	Joint                       Family System	Existence of joint family system in India promotes disguised unemployment. Usually the members of a family work on their family farms or do family business. There are more workers on a family farm than what would be needed on them.

7	Increasing turnout          of students   from Indian Universities	During the last decade, educated unemployment has increased due to rapid turnout of graduates by the Indian universities. Moreover, in the Indian educational system, more emphasis is placed on engineering and other Technical subjects rather than on Arts subjects. But there is unemployment amongst technical graduates as well. There is a lack of proper vocational education in the country.
8	Slow Developing     of Industries	Industrialization is not rapid in our country and industrial labour finds few job opportunities. The agricultural surplus labour force is not absorbed by the industrial sector. This leads to disguised unemployment in agriculture.
9	Inappropriate technology	An important cause of unemployment in the urban industrial sector is the use of inappropriate technology. Instead of using technology suited to our requirement of utilizing UNEMPLOYED labour supply available in the country, we have gone in for western  modern highly capital intensive technology which minimizes use of lobour. Clearly such technology is not appropriate for India as it creates more unemployment rather than absorbing more labour.
10	OTHER CAUSES	Other causes includes Mobility of  labour i.e due to  joint family peoples avoiding migration from rural to urban area. Jobless growth i.e when economy is growing without creating job opportunities for labour force.

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