In this article, we will discuss the cause of unemployment in a simple and easy way, and try to understand its various important aspects;

So to understand well, definitely read this article till the end, as well as you will get the link of other articles related to unemployment below, 💡 Social and Politics

cause of unemployment
cause of unemployment
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| What is employment?

Employee means to work in any business, in return for which money or something of value for money is earned. Many workers in the village get food grains in return for money. 

Generally women’s household works cannot be counted as employment because they are not economically productive. On the other hand, if they do such work inside or outside the house from which they can earn money, then they are called employment. [Unemployment Basics]

What is unemployment?

When a person wants to earn money and he also looks for work for this but he does not get work, such persons are called unemployed, and this situation is called unemployment.

Today unemployment is not the problem of any particular country, but it is the problem of all the nations. Unemployment is more or less visible even in developed countries. At all times, a large number of unskilled workers as well as skilled and specially trained workers are unemployed in every country.

Such workers are ready to work at the prevailing wage rates in the country, but are unemployed due to lack of work. A large number of unemployment is an indicator of social illness.

So overall we know that unemployment is dangerous for a healthy society, but the question comes that how does unemployment start, what is the reason for unemployment? So let’s understand this;

| Cause of Unemployment

Unemployment is a complex problem in which many economic, social institutions and individuals directly or indirectly contribute. The following reasons are important for unemployment in India:-

slow economic growth

High dependence on agriculture and slow growth of non-farm activities limit employment generation. Since independence, the growth rate has been much lower than the target rate. Hence, not enough employment was created. And people began to depend on such jobs which had no future.

increase in labor force

There are two important factors which lead to increase in labor force, which are as follows –

(1) Increase in population – Population growth and unemployment are interrelated. Rapid growth in population is the factor that greatly affects the availability of work.

The proportion in which the population is increasing in India, economic development is not happening in that proportion, industries are not running, opportunities for work and employment are not increasing, as a result of which the increase of unemployment is natural. [Read from here – What is the reason for increasing population?

(2) Social factors – After independence, education of women has changed the attitude towards employment. Now women also compete with men for employment in the labor market. But the economy has failed to meet these challenges as a result of which unemployment started taking a permanent form.

False social prestige

False social prestige is being born in such a way that some people consider doing some special work against their dignity.

For example, tasks like selling art and typing are considered inferior. Sometimes young people shy away from doing this kind of work because their family status is higher than them. They prefer to remain unemployed instead of doing such work.  

Captious Education System

The present education system in India is a gift or say curse of the British Government. This education gives importance to white collar jobs and increases the feeling of hatred towards body labour.

As a result, there is a special inclination of people to join the service of IAS, IPS, doctors, engineers, college teachers etc. While those services are less available. As a result unemployment is plentiful among the university-educated persons.

Lack of mobility

Lack of mobility generates unemployment. When people hesitate to move from one area to another, there is a gathering of workers at one place.  

They remain confined to their own ethnic groups, villages, towns and states. This creates the problem of unemployment in that area.

In India, casteism, provincialism, linguistics, family obligations, religious, customs, communalism etc. present special obstacles. Due to which there is no mobility in the individuals.

Physical disasters

The Indian farmer has to face calamities like excessive rain, drought, famine, epidemic etc. from time to time.

The means of irrigation etc. are also very less, as a result, the yield is not even as much as it should be. If there is a higher yield, more people can be given work. Therefore, unemployment also arises due to material calamities.

Increase in land load

The land remains limited, there is also a limit to its fertility. There is no significant increase in production beyond that limit. The law of diminishing production applies. As the population increases, the weight of the land increases, while the yield does not increase,

The result is that the condition of those who subsist on the land is getting worse day by day. The division of the land into small pieces creates the condition of leprosy.


In cities where there are big industries, thousands of people get work there, but the machine is such a demon that produces at a demonic speed.

The work which 100 men could not do in a whole day, they do it in a couple of hours, as a result, the livelihood of that many people is automatically taken away. Thousands of people keep coming in the grip of automatic mechanization and rationalization and are deprived of their livelihood.

Cycle of recession

Thousands of people keep coming in the grip of the fast-recession cycle that goes on in business, due to which people are laid off from time to time and unemployment keeps on increasing.

rural-urban migration 

One of the reasons for increasing unemployment in urban areas is that a large number of rural population migrate to the cities. This has put a lot of pressure on the cities, they are unable to handle such a large unskilled and uneducated population.

Other cause of unemployment

Apart from the above mentioned reasons of unemployment, other reasons are discussed, such as the Indian economy could not meet the infrastructure needed to become a production and export hub.

Along with this, malnutrition or other health problems also contribute to increasing unemployment. Apart from this, if we look at the statements of some scholars, then that can also be a reason for increasing unemployment;

‘ Adamsmith ‘ has considered the lack of capital to be the cause of unemployment. ‘ John Maynard Keynes ‘ has attributed unemployment to the desire to save; some economists have attributed the imbalance in demand and supply to unemployment.

Eliot and Merrill attributed unemployment to the slowdown in the business cycle after industrialization prosperity.

Thus it is clear from the above description that unemployment is the result of various social, economic, political and personal reasons. It depends on the social circumstances that which cause is particularly effective and where.

Overall, this is the main reason for increasing unemployment, hopefully it will be understood. Links of other important articles related to unemployment are being given below, for better understanding, must read them too.

| Important articles related to unemployment

Unemployment Prevention Measures

Population problem, its impact and solution

All the rules and regulations for hoisting the flag

What is education?: Do you consider yourself educated?