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. The unemployed rate in between age group 15- 29 has been increased since 2009-2010. The International 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 approximately 1.3 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
- 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.
- Inflation
- Indians don’t take jobs which are below their grades. Many find it difficult to work at the below qualification level job.
- Low wages or salary below the market rate.
- Many big industries look for the skilled candidate only, for their company.
- Recession
- Many Employers give preference to the experienced candidates only and not the fresher.
- Not enough or new jobs: As per the experience & analysis from number of new government jobs is decreasing every year. Government is not able to create enough jobs keeping in mind the Indian population.
- Slow business expansion
- 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.
- 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
Of the total families, more than 67 percent had average monthly income less than Rs 10,000. Rural sector had greater proportion of such households at 77 percent as compared to 45 percent urban households. Madhya Pradesh recorded the highest proportion (35.8 percent) of households with average monthly earnings not exceeding Rs 5,000 followed by West Bengal (34.5 percent), Uttar Pradesh (30.1 percent), and Odisha (29.8 percent).
This apart, many are working on jobs which do not allow them to fully utilise their abilities or from which they earn very low incomes. All this constitutes under-employment which remains a worrying aspect of the job scenario in the country. Around 58 percent of unemployed graduates and 62.4 percent of unemployed post graduates cited non-availability of jobs matching with education/skill and experience as the main reason for unemployment followed by non-availability of adequate remuneration cited by 22.8 percent of graduates and 21.5 percent of postgraduates.
Conversely, as per the National Skill Development Mission Document, only 2.3 percent of the workforce in India has undergone formal skill training as compared to 68 percent in the UK, 75 percent in Germany, 52 percent in USA, 80 percent in Japan and 96 percent in South Korea.
At the All India level, 64.9 percent of the regular wage/ salaried workers, 67.8 percent of the contract workers and 95.3 percent of the casual workers do not have a written job contract. Only 27 percent of the regular wage/salaried workers and 11.5 percent of the contract workers had written job contract.
When it comes to getting a job, informal referral method remains one of the most popular. Only 4.3 percent unemployed persons tried to get a job through government employment exchanges. 33.5 percent people used more than two methods to seek work, while another 24.1 percent job seekers approached their friends and relatives. Only 23.7 percent applications were made in response to advertisements.
Only around 24 percent households benefitted from employment generating schemes like MGNREGA, PMEGP, SGSY and SJSRY, etc. Only three North Eastern States, namely Tripura, Manipur and Mizoram had more than 70 percent of the households benefiting from MGNREGA.