Thanks to lock down in India, the unemployment rate has seen a high like never before. While unemployment has been a big issue for both educated and uneducated Indians, still it is more difficult for an educated and urban youth to land up a job. This problem has been hugely impacting young graduates. And the biggest issue is that urban unemployment has been continuously seeing an upward trend since the last 20 years. Unfortunately it’s been observed that higher education worsens the unemployment rate. This is a cause of serious worry because India is a young country with a major percentage of it’s workforce being educated. Let us check out some major reasons which have led to alarming unemployment rates in urban India.
1) Unemployment Due to Technology Advancement
2) Rural to Urban Migration
3) Defective Education System
4) Huge Population Growth
5) Fall of Cottage and Small Industries
6) Slow Growth Rate of Industrialization
7) Lack of Physical Capital
8) Lack of Entrepreneurship
9) Fall of Agriculture
There has been a major change in the way people conceive agriculture as a career. Owing to its unflattering image, today’s youth is rarely choosing agriculture as a desirable career option. We all know that agriculture involves a huge amount of labor and none of today’s generation wants to opt for a labor intensive job. Besides, continuous price changes, natural disasters, pest outbreak etc. have added up to the problems of the agriculture industry. As a result, a large amount of the rural population stays unemployed which results in a mass migration to the far and near urban areas. While all the urban businesses like tourism, IT, ITes etc. will definitely help in bridging the urban unemployment gap, yet the biggest factor that can help solve the urban unemployment crisis lies where no economist or finance minister wants to look. And that’s where AGRICULTURE lies. The state sponsored policies have led more and more farmers to shift from rural places to urban areas and have forced them to convert into cheap labourers for factories, infrastructure, construction etc. in urban areas.
10) Stringent Labor Laws
Unruly labor has been one of the biggest challenges faced by the industries in India. Stringent and protective labor laws unduly favor the laborers. This labor law makes it challenging to sack a labor who has been functioning for more than 240 days. 50+ central sponsored and 100+ state sponsored labor laws are the most worrisome thing for an industrialist. These laws are so labor biased that at times it even gets difficult to close down a unit. As a result, most industries are forced to choose automation over manual labor to avoid unwanted hassles in the future. This indirectly leads to reduced levels of industrialization which in turn directly creates unemployment.