Caste System
In India caste system is prevalent. The work is prohibited for
specific castes in some areas.
In many
cases, the work is not given to the deserving candidates but given to the
person belonging to a particular community. So this gives rise to unemployment.
Slow Economic Growth
Indian economy is underdeveloped and role of economic growth is
very slow. This slow growth fails to provide enough unemployment opportunities
to the increasing population.
Increase in Population
Constant increase in population has been a big problem in India.
It is one of the main causes of unemployment. The rate of unemployment is 11.1%
in 10th Plan.
Agriculture is a Seasonal
Occupation
Agriculture is underdeveloped in India. It provides seasonal
employment. Large part of population is dependent on agriculture. But
agriculture being seasonal provides work for a few months. So this gives rise
to unemployment.
Joint Family System
In big families having big business, many such persons will be
available who do not do any work and depend on the joint income of the family.
Many of them seem to be working but they do not add anything to production. So
they encourage disguised unemployment.
Fall of Cottage and Small
industries
The industrial development had adverse effect on cottage and
small industries. The production of cottage industries began to fall and many
artisans became unemployed.
Slow Growth of Industrialisation
The rate of industrial growth is slow. Though emphasis is laid
on industrialisation yet the avenues of employment created by industrialisation
are very few.
Less Savings and Investment
There is inadequate capital in India. Above all, this capital
has been judiciously invested. Investment depends on savings. Savings are
inadequate. Due to shortage of savings and investment, opportunities of
employment have not been created.
Causes of Under Employment
Inadequate availability of means of production is the main cause
of under employment. People do not get employment for the whole year due to
shortage of electricity, coal and raw materials.
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.
Expansion of Universities
The number of universities has increased manifold. There are 385
universities. As a result of this educated unemployment or white collar
unemployment has increased.
Inadequate Irrigation Facilities
Even after the completion of 9th five plans, 39% of total cultivable
area could get irrigation facilities. Due to lack of irrigation, large area of
land can grow only one crop in a year. Farmers remain unemployed for most time
of the year.
Immobility of labour
Mobility of labour in India is low. Due to attachment to the
family, people do not go to far off areas for jobs. Factors like language,
religion, and climate are also responsible for low mobility. Immobility of
labour adds to unemployment.
All these factors add to unemployment.