DMPQ: What are the causes of unemployment in India?

Even though India has experienced a high growth period in the last 15 years but its employment elasticity has remained on lower side. The period is sometimes termed as Jobless growth period. Following are the reasons for unemployment in India:

  • Low productivity in agriculture. Disguised unemployment in agriculture is a serious issue. More than 48% of work force is dependent on agriculture, but agriculture contributes only 14% of GDP to the
  • Every year 12.8 million work force is entering into work force but job creation is not upto that pace.
  • Manufacturing sector, which is an  employment generator is also passing through stagnant phase. Investment climate is passing through dormancy hence less job creation.
  • Globally there is tendency of protectionism going on. It is also creating hurdle in getting job. Like H1B issues, nitaqat law etc.
  • Now it is an era of technology, where industrial revolution 4.0 is coming. This revolution majorly relies on artificial intelligence, robotics and hence low job creation.
  • Real estate sector is under slowdown from a long time. Construction sector was one of the major absorber of migrated landless laborers. But this is also not able to create jobs.



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