Indian Economy was underdeveloped And still, it is a developing country with an Agriculture background.
Its growth rate is exceptionally low Hence, its not able to generate employment opportunities as per the requirements.
Rapid Growth of Population
Continuously rising population is another major cause.
The growth rate of the population is so fast that our country is not able to generate opportunities for all of them Hence, the size of unemployment has increased continuously.
Agriculture- A Seasonal Occupation
Agriculture produces are dependent on seasonal factors. Which leads to seasonal unemployment when there is no season for crop production.
On average 5 to 7 months are the idle months for the farmers due to seasonal factors.
Nearly 15% of the total working population is engaged in disguised unemployment.
Lack of irrigation Facility
So much planning for the development of the Agriculture sector looks insufficient.
As still, more than 50% of agricultural land is not having a permanent source of irrigation.
Lack of irrigation facilities forced farmers to produce a single crop. Hence, a single cropping system will reduce employment opportunities.
Joint Family System
The joint Family system means remaining under a single roof with all family members.
Joint Family System encourages disguised unemployment.
Family members are dependent on the head rather than on self-dependence.
The decay of cottage and small Industries
Cottage and small industries are sources of employment.
As these industries are labour intensive But the emergence of large industries and competition from foreign brands leads to the decline of the cottage and small industries. Hence, it leads to a decrease in employment opportunities.
Low Savings and Investments
There is a lack of capital to invest in the economy.
The capital which is available is utilised toward the investment over large scale industries.
It means the major portion of capital is used towards acquiring the technologies.
Hence, there is a decrease in opportunities.
Limited Mobility of Labour
Mobility means the movement of labour in search of a job.
Labour does not move to the area where the job is available due to family and social constraints.
Another reason is the diversity of languages, Religion and customs.
Economic and Social Consequences of Unemployment
Economic Consequences Of Unemployment In India
Non-utilisation of Manpower
Unemployment leads to the underutilisation of available manpower.
As we are not able to use the resources to the full capacity.
Loss of Output
There is a loss of generating more output by using the available resources
Hence unemployed people are not able to contribute.
Low Capital Formation
Unemployment only increases the burden of government.
By increasing the social consumption expenditures.
These expenses do not contribute to capital formation.
The productivity of the agriculture sector is exceptionally low as compared to other countries.