The reasons why unemployment is growing in India
Today in my post I will discuss various reasons for unemployment in India. Considering the fact, with the population of 1.4 million it is not easy to provide employment opportunities to all. The Indian government is taking necessary steps to control the situation. Programs like ‘Make in India,' ‘Digital India’ ‘Skill India’ and ‘Start-up India’ to identify local talent and provide employment opportunities to youth.
In spite of all this initiatives youth is still facing challenges to finding jobs. As per BBC statistics every year approximately 12 million graduates are coming into the job market, and only a few people are succeeding to land in corporates. If we make a list there are so many challenges; the unemployment rate is high in urban areas than rural areas. Government is providing employment opportunities to unskilled labor for 100 days a year for every adult in the house.
"Unemployment in India is projected to increase from 17.7 million last year to 17.8 million in 2017 and 18 million next year. In percentage terms, the unemployment rate will remain at 3.4 per cent in 2017-18," - Source
The unemployment rate in India was 7.97 percent last year, as we discussed rural unemployment at 7.15 percent and urban unemployment at 9.62 percent and estimated that the percentage would increase 5-10 more with declining IT sector in India. Influence of automation, artificial intelligence and stricter visa norms in different countries, whatever the reason maybe major IT companies in the country are reducing its human resources.
Many experts conclude that India is only focusing and depending on the services sector and need to shift its paradigm towards large and medium scale manufacturing industries. In last decade the small and medium scale industries have seen huge downfall because of insufficient capital and competition from foreign players leading unemployment for many people.
Major reasons for unemployment:
- Theoretical education: thousands of graduates are coming out of universities every year but are they competent enough to prove them self in the market. All most in all regional universities are only focusing one marks rather than real knowledge.
- Slow Growth of Industrialisation
- Less Savings and Investment:
- Increasing population.
Unemployment is a serious problem for any developing country, and the government needs to implement more programs to empower educated youth in the country otherwise this can lead youth to go in the wrong direction. We will try to address possible challenges for unemployment in India. We will discuss the reasons for details and possible solutions to control unemployment.
It's always the government fault.
That's easy to say.
Make In India is a great initiative for reducing unemployement problem.It shouldn't be just used as electorial manifesto.It needs to be implemented in an effective way irrespective of the parties in power.
Modi fooled whole india.
These initiatives are just on papers (only imaginations) not on real grounds.
"1.4 million" - I would say 1.4 billion. Indeed hard to find work for everybody, but hopefully some of them are too young or too old to work, but yet so many active people
Good points there must be a way to solve it. Nice post by the way
Thank you, that's just some observations :)
This is fact .
Interesting. Not to sound naive, but is this why many people from India come to the US and own businesses here? It seems that many convenience stores are owned and operated by people from India. There are also a lot of Doctors here in the US from India. Do these types of business not thrive in India itself?
yes these are the major reasons but other reasons are also there like quota (Sc,Bc) and the corrupt leaders <u did very well in this post
good points .. To add to the points mentioned, the drama to win UP elections (a province / state) by the government under the name has killed the infrastructure development (and converted almost all the black money into legal tender.). This in addition to the issues around GST implementation - which is mostly due to confusions - is killing the job sector. Otherwise unaffected economy is literally shot in the foot ...
Very Good Analysis.
Good point..Hope your figures are actually correct because I believe India's population should exceed 2 million.
That aside, you actually elaborated the points wholly. This same issue is obtainable in Nigeria too where Even postgraduates degree holders are unemployable due to inadequate practical seeks
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great news .....dear