Unemployment: Biggest challenge in India

Unemployment Biggest challenge in India

Unemployment: Biggest challenge in India

Unemployment is when a person does not have a job, is currently laid off and waiting to be called back, has actively looked for work in the past four weeks, and are currently available for work. Unemployment is generally measured using the Unemployment Rate. The AN economy is considered to be in distress when unemployment rates are higher. This can also be a result of poor skill development.

The Indian economy is slowing down.

Employment Statistics

A research carried out by Pew Research Center found out about 8.6 million Indians were jobless and another 393.7 million work in poor-quality jobs vulnerable to displacement. Data released by the Centre for Monitoring Indian Economy (CMIE) stated that the unemployment rate in India in October 2019 rose by an alarming 8.5 percent, which was the highest since August 2016. A Research conducted by Santosh Mehrotra and Jajati K Parida at Centre of Sustainable Employment stated that there has been a significant decline in total employment in India between 2011-12 and 2017-18. The unemployment declined by a dramatic nine million. These things are happening due to many reasons but one of the main reasons is that people do not want to enroll in the Skill India registration.

Unemployment Reasons

  1. Increased Population Growth
  2. Slow Industrial & Economic Growth
  3. Lack of economic Planning
  4. Labour Immobility
  5. The shift in Labour Demands
  6. Demand for certified skills rather than General Qualifications
  7. Digitalization and Automation of Industries
  8. Lack of Demand-led Education
  9. Unwillingness to Adopt to Industrial Changes
  10. Contraction in Demands
  11. Closure of Industries
  12. Skill development

Effects of Unemployment

  1. Increase in Poverty: Lack of source of income results in an increase in debt. This, in turn, triggers poverty.
  2. Increase of Social Issues such as corruption, theft, etc.: In cases of unemployment, the unemployed workforce becomes desperate to find means of income, and as a result, a rise in social issues is seen. This threatens the law and order of the country creating a state of instability.
  3. Loss of Human Resources: There is a huge human force waiting to be employed. Most of these are unemployed and unskilled. If this labor was put to work with the right knowledge with the National skill development mission, it would have resulted in economic growth, but due to unemployment, these forces are wasted.
  4. The exploitation of Labor & Low Wages: Labors are ready to work for low wages and in unfavorable conditions. Lack of availability of jabs forces a person to compromise their rights.
  5. Political Instability: The citizens start losing their trust in the ruling government and start blaming them for the situation.
  6. Industrial disputes: The relationship between employee-employers is disrupted.
  7. Increase of Capital: Even though India has scared capital and surplus labor force, it is seen that the capital investment is more even during unemployment.
  8. Loss in Small Scale Industries & Tertiary Sectors: Competition from machine-made goods and unfavorable policies of Foreign Industry rulers cause the Cottage small scale industries to close down. These companies even fail to get a Skill development program.


A good Skill development mission can make a lot of difference in this country at the end of the day actually. If the Skill development courses that are going to be offered at the Skill development center are good enough to make a worker worth the effort of hiring then it makes a lot of difference. The National skill development corporation registration goes on time to time every year and that will help workers develop their Employability skills with the help of some important Employability skills training. While some may ask why are employability skills important? Well, the answer is that there is always a requirement of Important skills in workplace in any company. There are many great benefits of skill development training and the government and also the Initiatives of NGO towards employment have made a lot of difference.

Unemployment: Biggest challenge in India

2 thoughts on “Unemployment: Biggest challenge in India

  1. The article is really impressive.. Strikes the issue very well.. ๐Ÿ˜Š๐Ÿ˜Š๐Ÿ˜Š
    Unemployment is a risky affair..

  2. The article is really impressive.. Strikes the issue very well.. ๐Ÿ˜Š๐Ÿ˜Š๐Ÿ˜Š
    Unemployment is a risky affair..

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