Unemployment is the Massive problem of India and its Solution

Unemployment is a major problem of a developing country like India.



The term unemployment can be understood as a situation in which no job is available for a person to earn means of livelihood. Unemployment is found both in industrial and agricultural sector. In India, many factors have led to unemployment.

They are as follows:

  1. Over population.
  2. Seasonal nature of certain works.
  3. Economic fluctuations
  4. Extensive Automation and use of IT which has replaced man power.

Unemployment problem is at an alarming rate. It is difficult to get accurate factual information on unemployment. But it can be noticed that there is a significant increase in the rate of unemployment. Unemployment is found not only in urban sector but also in rural sector.

Forms of Unemployment:

  1. Seasonal unemployment:

It is a common feature of rural sector. Agriculture is a seasonal occupation. At least for 5 months in a year a sizeable portion of the working force is unemployed.

Disguised unemployment:

It is a situation in which a person appears to be employed, but enough work is not available. Too many workers are engaged in doing in a small job.

Under employment:

It is a situation which a person is employed, but his capacity is not utilised to the full extent. His wages are not in accordance with his capacity.

Urban unemployment:

The problem of urban unemployment is of two kinds viz: Unemployment among indusrial labourers.

  1. Unemployment among the educated middle class:

Unemployment among industrial labourers is on account of rapid increase in population. The size of economically active population is bound to increase. With the spread of urbanisation people from rural areas have been shifting to the urban areas. During the off season many workers in agriculture come to the industrial centres to seek employment. The rate at which the expansion of industries has been taking place is not keeping pace with growing labour force.

Educated unemployment occurred with the rapid expansion of educational facilities. The number of graduates and post-graduates in various fields like law, medicine; Engineering, Science, management etc. have enormously increased.

  1. Unemployment in the organised sector:

The organised sector includes all establishments in the Public sector and non-agricultural establishments engaging 10 or more workers in the private sector. On account of extensive privatisation, there are a number of discharges dismissals and retrenchments which have resulted in unemployment in the public sector. In private sectors the policy is to employ less number of people and get maximum work done by them.

Effect of Unemployment:

  1. Unemployment has caused a lot of hardship and agony particularly among the youngsters. It has created frustration. Bhagwati Committee report of 1971 reveals the period of waiting before unemployment.

. 2. Continuous unemployment causes personal hardship to the family members.

  1. It has resulted in increase in crime rates. Quite often the unemployed youth commit crimes to earn their living.
  2. Brain drain: As a consequence of lack opportunities in India, intelligent youth migrate to foreign countries. Their intellectual abilities are used by foreign countries which causes loss to India.


The government of India set up a committee with M. Bhagavati as chairman to suggest measures to solve unemployment. Based on the committee report, the government took the following measures.

i. Rural works programme:

The emphasis under the programme was on the construction of civil works of permanent nature such as rural housing, electrification construction of roads.

Marginal farmers and agricultural labours under the scheme were to be assisted with subsidised credit support for agricultural and subsidiary occupations like dairy, poultry, Fishery horticultural operations etc.

ii. Agro service centres:

The scheme provided for assistance for self employment to unemployed graduates and diploma holders in mechanical, agricultural and allied fields. It aimed to help in establishing workshops, organising agricultural machinery and technical services like supply of spare parts etc.

iii. Crash Programme for rural employment:

The primary objective of the scheme was to generate additional employment through a network of rural projects.

iv. National Rural employment programme:

It was implemented in 1980. It was central sponsored programme with 50% central assistance. It aimed at creating community assets for strengthening rural infra­structure.

v. Food for work programme:

It was a scheme to use food grains as payment for work to the persons living below poverty line. Objectives of the programme were:

  1. To generate additional gainful employment for both men and women in rural areas.
  2. To create durable community assets and strengthen the social infrastructure in order to increase production and raise living standards in the rural areas.
  3. To utilise surplus food grains for the development of the country’s human resources.

Recent schemes to reduce unemployment—Jawahar Gram Samrudhi Yojana 1999, Employment Assurance scheme. Sampoorna Grameen Rozgar Yojana Swarna Jayanti Gram Swarozgar Yojana.

Pradhan Mantri Gramodyog Yojana. It was introduced in 2000-01. Its objective is to focus on village level development in five critical areas. Eg. : health, primary education, drinking water With The Objective Of Improving Quality Of Life In Rural Areas And Provide Rural Employment.

Progress of Various Schemes:

In spite of implementing various schemes to remove unemployment the problem still continues to exist, the following reasons can be attributed for the failure of various schemes:

  1. Corruption in the implementation of schemes.
  2. Bureaucracy in the administration of schemes.

iii. Preparation of fake muster rolls.

  1. Paying less than the stipulated wages etc.
  2. Lack of effective representation of poor in the implementation of schemes.

Management Perspective:


Problem of unemployment has its impact on the practices of an organisation. It has resulted in unfair and corrupt practices in private organisations such as fake muster rolls, low wages. Harassment at work place etc. The attitude of some private sectors towards employees is unfair on account of availability of surplus labour.

India Labour Last Previous
Unemployment Rate 4.90 5.20
Employed Persons 29650.00 28999.00
Unemployed Persons 44.79 40.17
Labor Force Participation Rate 52.50 50.90

9 more rows, 4 more columns


Unemployment means a person willing to work but unable to find a qualified job. Our country is facing many problems but one of the serious problem is of unemployment. Many graduates, doctors, engineers, scientist are unemployed or working underemployed. Due to unemployment we are wasting our country’s human resource.

The unemployed rate in between age group 15- 29 has been increased since 2009-2010. According to the Global Employment Trends 2014 the unemployment rate has raised to 3.8%, last year it was 3.7%. TheInternational Labour Organisation (ILO) has said in the recent report that India has shown rise in the unemployment in the last two years.

If the problem of unemployment is solved it will help in development of the country. With Population of 1.20 billion in our country the unemployment rate is increasing day by day. The problem of unemployment is rising but still many industries are facing the problem of skilled candidate for their company. There is a boom of software companies, Outsourcing companies in India, but still facing the problem of unemployment.

Here are some of the reasons why there is unemployment in India

  1. There are employment opportunities in India, but the rising population problem creates the unemployment. If the population grows in the same rate the next generation will face more problems of unemployment. If there is vacancy for 1 position 100 or 1000 apply for the position and only one gets the job and others remain unemployed.
  2. Inflation
  3. Indians don’t take jobs which are below their grades. Many find it difficult to work at the below qualification level job.
  4. Low wages or salary below the market rate.
  5. Many big industries look for the skilled candidate only, for their company.
  6. Recession
  7. Many Employers give preference to the experienced candidates only and not the fresher.
  8. Not enough or new jobs: As per the experience & analysis from Get Sarkai Naukri, number of new government jobs is decreasing every year. Government is not able to create enough jobs keeping in mind the Indian population.
  9. Slow business expansion
  10. Advanced Technology: Earlier for a task hundreds or thousand people were required to do a work but now due to the advanced technology only one person can do many people’s work. With the advanced technology companies are hiring few persons to operate the machine. Give a command on computer and the work is done this has cut off the employment of many.
  11. Corruption: In Government sector and in some private sector people get the job by giving the bribe. Even though the candidate is not that qualified but if he gives the bribe he gets the job. So to get a government job give a bribe.The qualified candidate remains unemployed as no money to give the bribe.

Problems caused due to unemployment

  • Unemployment and poverty goes side by side. The problem of unemployment gives rise to the problem of poverty.
  • Young people after a long time of unemployment find the wrong way to earn money.
  • To get rid from the unemployment stress, they accept alcohol or drugs.
  • Unemployed youths accepts suicide as the last option of their life
  • Lower economic growth
  • Increase rate in Crimes. As the employed youth don’t have anything to do they start doing robbery, murder etc.
  • Health issues i.e it affects mentally as well as physically

Solutions to the unemployment in India

  1. The very first solution for the unemployment is to control the rising population of our country. Government should motivate people to have small families. Indian government has started initiatives to control the population but still the population is rising.
  2. The quality of Indian education should be improved. The current education system is not upto the level. Government should keep a strict watch on the education system and try to implement new ways to generate skilled labour force. Government should select a committee to look after the schools and universities. The syllabus taught is of no use to the industries so the education should be as per the current requirements of the industries. Before completing the education a practical knowledge should be given.
  3. Also today’s youth should join the institute or select the course where proper training is given and the course is as per the current industries requirements. Take the course as per your interest and which will bright your future.
  4. Government should encourage and develop the agriculture based industries in rural areas so that the rural candidates don’t migrate to the urban areas. More employment should be generated in rural areas for the seasonal unemployment people.
  5. Rapid Industrialization should be created.
  6. Development of the rural areas will stop the migration of the rural people to the urban cities and this will not put more pressure on the urban city jobs.
  7. Government should allow more foreign companies to open their unit in India, so that more employment opportunities will be available.



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