1 Jul 2022

366

Unemployment in India

Format: APA

Academic level: College

Paper type: Research Paper

Words: 3591

Pages: 13

Downloads: 0

Unemployment is currently one of the significant challenges facing the developing countries. In fact, the problem also exists among the developed nations although the impact in those countries is not widespread (Meir & Rauch, 1995). Unemployment is a major problem for many families because it is the source of many other challenges. For example, people who are not employed may find it challenging to pay for their daily expenses. Consequently, they end up struggling to satisfy their needs by engaging in risky practices to make ends meet. Some may even decide to engage in crime just to get something for themselves. Therefore, unemployment is a big problem that needs to be addressed with a lot of seriousness by all countries. Among the developing countries, unemployment rates have remained high for many years. India is one of the developing countries that are facing a big challenge in terms of unemployment. It is worth pointing out that India is one of the most populated countries in the world. It has millions of young people graduating every year from the institutions of higher learning. However, the employment opportunities have not been enough to sustain the ever-increasing demand for the jobs. Consequently, most of these educated people are left without any jobs and this has a great impact on their economic status. 

Because of the high rates of unemployment in India, it is crucial for the government to come up with clear objective and strategies that would create more job opportunities. The economy of India has been growing steadily over the past few years, and if the government and the private sector can come together and work for the common good of the Indian people, much progress is bound to be realized. In fact, the levels of unemployment would reduce significantly hence solving the other big problem of poverty. Indeed, India has a huge population of people living under very extreme poverty levels. Being financially stable is crucial for every citizen to have a quality life. Financial stability helps people to have the ability to pay for their healthcare expenses, education among many other basic needs. 

It’s time to jumpstart your paper!

Delegate your assignment to our experts and they will do the rest.

Get custom essay

Why It Is Important To Address the Issue of Unemployment in India 

The issue of unemployment in India is critical because it has a great impact on millions of people. While every human being has a desire to live well, without a job, it is often difficult to find a solution because people cannot earn a living which they can then spend on themselves. Most governments across the globe have been trying to come up with innovative ways of improving the living standards and India has been a major point of focus because of the immense opportunities that are at its disposal. For several years now, India has faced significant problems because of high unemployment rates ( Ettner, 1997) . 

It is important to address the issue of unemployment in India because it has caused an increase in the level of poverty. As Ettner (1997) notes, poverty is great human adversity that has often denied people the privilege of living decent lives. Many families in India struggle to meet their daily needs. Often, they end up going without some of their basic needs such as food and decent housing. In the past few years, there has been a tremendous rise in the number of street families. Many struggling families have decided to become beggars in the streets of many towns and cities in India. These families live without proper shelter because they stay outside in the open. Consequently, they are exposed to a myriad of other risks such as abductions and diseases. The children who are raised up in the street families often do not have access to education. Therefore, the cycle of poverty keeps repeating itself. To this end, the government of India needs to come with a comprehensive strategy that would ensure that the street families in India are given an opportunity to seek better lives through education and employment. 

Secondly, it is important to handle the topic of unemployment because it has immensely contributed to drug abuse among the youth in India ( Ettner, 1997) . The youth comprise a significant percentage of the Indian population. Most of the young people pursue education with the hope that they would get employed after completing their studies. However, the economy of India has not been growing at a good pace that would create more job opportunities for these young people. Consequently, millions of the youth in India are unemployed and this has made some of them to abuse drugs because of the frustrations in life. The police in India have had a difficult time dealing with organized drug dealers who supply some of the hard drugs to the youth. In the process of fighting the drug trafficking, many people have lost their lives. In fact, many Indian youths have had to experience some of the worst consequences of drug abuse. Some have even died because of the side effects. A few years ago, dozens of young people perished after consuming illicit liquor in India ( Ettner, 1997) . Therefore, it is essential to address the topic of unemployment to find a lasting solution to the problem of drug abuse. 

The third reason why it is crucial to address the issue of unemployment is the issue of crime. Communities that have high levels of unemployment witness a number of criminal activities such as robbery with violence, rape among other evils ( Hagan, 1993) . People who cannot afford to meet their daily needs would often want to try any other possible means of raising money and other resources. Unfortunately, crime has been one of the ways which some people in the society use to meet their daily needs. This vice causes a lot of suffering to innocent people. Some are physically harmed while others are psychologically tortured. Recent reports have indicated a significant increase in the number of rape cases across India. As Hagan (1993), asserts, women have been made to feel insecure even during the day in the streets of major cities such as Mumbai and New Delhi. 

India is surrounded by countries that have been a haven for terrorists for many years. The terrorist groups often recruit and radicalize frustrated young youths who are desperate to get a job opportunity. Consequently, these recruits cause insecurity to the country. In neighboring Pakistan, terrorist groups such as Islamic State and Al Qaida have been targeting Indian youths with the objective of enrolling them in suicide missions in India. A few years ago, terrorist attacked a popular hotel in Mumbai claiming many lives and causing the destruction of much property. The incident drew world attention because many people perished. After investigations, it was found that the perpetrators of the terrorist acts were extremists from Pakistan. It is possible that some of these people were recruited to the terrorist group because of the lack of employment. 

The lack of employment opportunities to thousands of youths also affects the growth of the economy of India. As already stated, India is a big country with an enormous potential to grow. The manufacturing industry has been booming because of increased investment. However, many people in India are poor hence they cannot be able to purchase the products that have been manufactured. In other words, the local population has a low purchasing power. Consequently, most companies manufacture products and export them to other countries where people have enough financial clout to purchase them. Indians deserve to buy these high-quality products which are often exported to foreign countries. The best solution to this problem is to facilitate the creation of more job opportunities in the market for the people to earn money which they can use to purchase their desired products (Singh, 2002). 

Need For Action over Unemployment in India 

Several challenges come with high unemployment rates, with the major one being poverty. It is difficult to end poverty without putting concrete strategies that would ensure the creation of more job opportunities. The severity of the unemployment is evident from recent research studies that were conducted in India. According to the Labor Bureau Statistics, the number of self-employment opportunities in India has been declining in the recent past. In addition, the total number of the other employment opportunities have reduced drastically. 

The Labor Bureau Statistics (LBS) of India also indicates that the country is currently the leading in terms of unemployment. In other words, the total number of the unemployed in India is the highest compared to any other country in the world. This is evidence enough that the government of India needs to find a long lasting solution to this problem that has crippled the lives of many Indians. 

The Center for Monitoring Indian Economy (CFMIE) states indicates that there are more than 30 million Indians who are currently jobless. This is such a huge population hence it has a great impact on the economic growth of India. Furthermore, CFMIE indicates that the unemployment rate stood at 5% at the beginning of the year. However, the trend in February was not good because the unemployment rates increased to about 6.1%. According to the statistics in the past one year, the month of February 2018 reported the highest number of unemployment rates. 

In January 2017, the unemployment rate was reported to be the lowest after a long period of high unemployment. It was recorded to be at 3.4% compared to the highest of 6.1% in January 2018 (Times of India, 2018). The unemployment rates have always been higher in the urban areas as compared to the rural areas as most people in the rural areas engage in self-employment, especially in agriculture. The statistics indicate that in February 2018, there was an unemployment rate of 6.84% in the urban areas and 5.65% in the rural areas (Times of India, 2018). The statistics indicate a lower figure in January whereby the unemployment rate was 6.35% in the urban areas and 4.36% in the rural areas. The rural regions witnessed a lower rate of unemployment because of a smaller population. Moreover, most of the people in the rural parts of India engage in agricultural activities. 

According to the United Nations, India is not expected to improve in terms of unemployment rates in the year 2018. All indicators reveal that the economy of India is likely to witness a stagnation due to a myriad of challenges. The International Labor Organization (ILO) report states that the number of people who are unemployed in India would rise from 18.3 million in the year 2017 to 18.6 million people in the year 2018 ( ILO projects unemployment rate at 3.5% in 2018: Government, 2018) . Therefore, about 300 thousand more Indians would be jobless in the year 2018. Such patterns should worry the government because of the negative consequences of unemployment. 

Solutions to the Unemployment Problem 

The problem of unemployment in India needs the country to deal with many major issues. First, the government needs to come up with strategies to control the rate at which the population of India is growing. Currently, India has a population of about 1.2 billion people. Every year, this population keeps growing at a very high rate. However, the economy is not creating an equal number of job opportunities. Increasing the population without putting in-place strategies to increase the number of jobs that are created tends to worsen the already bad situation. 

Most developed countries have well-controlled population growth rates. Consequently, the number of jobs created every year almost meets the rising demand. Besides reducing the unemployment rate, controlling the population growth rate helps in improving the living standards of the citizens as the government finds it much easier to provide essential services such as healthcare to every citizen. Overpopulation tends to burden the government in a manner that makes it harder to deliver crucial services such as education, healthcare, and housing among other basic services. Consequently, the living standards for people in the country tend to worsen. It also decreases the life expectancy for the citizens and the output of the workers. On the contrary, healthy workers tend to work more efficiently and effectively. China is a classic example of a country that has managed to control its population growth rate effectively. The government came up with a policy that parents are only allowed to have one child. The decision was made because the country was going through a lot of straining due to the overpopulation. The one-child policy enabled the government to plan for the development agenda of the country effectively (Singh, 2002). 

The second strategy that can be used to solve the problem of unemployment in India is by improving the education system. Workers seeking employment opportunities need to have the right skills to perform their tasks as required. The world of business has gone through massive changes over the past few years. New technology has been introduced into the market to try and improve the way various activities are done. Unfortunately, the government has not changed the education system of India to meet the current demands in the market. Much of what is taught in the Institutions of higher learning is not relevant in the market. As a result, most of the students graduate from these institutions without having the correct skills for performing their duties. 

Employers look for people who can work well and deliver the expected results. However, most of the Indian graduates have not been taught the practical skills that are needed in the field. The old syllabus that has been used for many years is still employed today. Therefore, to reduce the unemployment rates, the government needs to thoroughly look into the education system and design a system that ensures students are well trained and possess the right skills to work effectively. Proper training will equip Indians with the necessary skills that are much needed in the current market. Providing proper education will also ensure that Indians can compete even at the international level. This will significantly reduce the strain in looking for business opportunities in India. 

The third strategy that can be used to reduce the rate of unemployment in India is increasing the rate of industrialization ( Meier & Rauch, 1995) . India is a developing country with an enormous potential to grow its industries. Expanding the industries would create more job opportunities for the citizens. Increasing the rate of Industrialization requires the cooperation of the government of India and the private sector. Many businesses can be willing to invest billions of dollars if they see a show of goodwill from the government. The government should thus create an enabling environment for the businesses to thrive. This can be done through reduction of taxation on products that are manufactured locally. Additionally, the government can reduce the tedious processes that companies have to go through before they can be allowed to operate. 

Job creation through rapid industrialization can also be achieved through encouraging direct foreign investment. In fact, several multinational companies are capable of investing heavily in India. The government of India needs to invite these companies to set up their businesses, and once they have been opened, thousands of the citizens would have an opportunity to work and earn a living from them. In addition, the Indian government can establish partnerships with other nations in the world to allow the highly educated Indian workforce to work abroad as some developed countries require more employees from outside because of the many job opportunities. Therefore, the Indian government should identify such countries and negotiate with them about exporting human capital. 

The burden of unemployment can also be solved by encouraging entrepreneurship. While many people desire to be employed and work in good offices, not everyone is suited to work in such areas. There is an immense potential for the Indians to create their jobs through entrepreneurship. The government can come up with strategies to train people on how they can open their businesses and manage them effectively. Entrepreneurship enables the people to be critical thinkers thus allowing them to identify business opportunities easily. The ability to see a niche in the market is the first step towards establishing a successful business. However, one of the most challenging parts has been on the mobilization of the capital to start the business. Therefore, the government can once again step in and provide loans at low-interest rates to the businesses. Through the provision of the resources, businesses can be opened hence creating even more opportunities for self-employment. 

Apart from opening up of businesses in urban centers, the Indian government should promote agricultural activities in the rural areas to prevent migration of people to urban areas. Rural-Urban migration has often worsened the condition of unemployment in the urban areas. Several agricultural activities can be promoted especially in cash crop farming. To this end, small industries can be constructed in the rural areas to ensure value addition to the farm products. These small industries would create job opportunities for the locals ( Singh, 2002) . On the other hand, value addition would ensure that the farmers get good returns from the sale of their farm produce. The government can also invest in research to improve the yields for the farmers and find the best ways of handling challenges that arise due to drought and diseases. 

Farming often depends on rains which can often fail. The issue of climate change has dramatically impacted on farming activities. Indeed it is not safe anymore for governments to leave the farmers to depend on the rains to grow their crops. The government thus needs to bring forth intense and extensive farming activities through irrigation. Such interventions would ensure that farmers do not experience losses due to extended periods of drought. Additionally, the government of India needs to invest in the infrastructure of the rural areas. Essential services such as healthcare should be provided to people living in the villages to discourage rural-urban migration. Many people tend to move to urban areas in such for better job opportunities, good infrastructure, and better services in terms of education and healthcare. 

Some industries in the economy tend to produce products seasonally. Therefore, employees often lose their jobs when the production of particular commodities stops. It is crucial that employees have stable jobs to avert seasonal unemployment. To this end, the industries that deal with products whose demands are seasonal should embrace diversity. Sectors that have diversified the manufacture of their products do not have to close down during particular periods of the year. Therefore, all seasonal industries in India should be encouraged to diversify their products so that they can continue with their various business activities throughout the year without having to close down. 

The fight against corruption would ultimately lower unemployment rates in India. Corruption is a major problem in many countries worldwide. The vice has made it virtually impossible for states to succeed in improving the provision of services to the citizens. As some have observed, corruption is s a killer of economies. Some of the countries in the world today are richly endowed with a lot of natural resources which can provide much revenue that could be channeled to basic provision of healthcare and the infrastructure. However, corruption has denied these countries resources which could have helped create more job opportunities. India is ranked as one of the most corrupt countries in the world. Therefore, a lot of resources have ended up in the hands of a few individuals in the country. 

The government of India and the society at large should team up in the fight against this vice. Strong policies should be put in place to ensure that corrupt individuals do not get an opportunity to steal money that is meant to develop the country. Taking such measures would ensure that the government gets enough resources to facilitate projects that can create job opportunities for the citizens. The fight against corruption ensures fairness when it comes to employment. Corruption often makes people engage in backdoor deals during employment. Often, people who are not qualified to do particular jobs are givens such opportunities. Therefore, the government of India needs to intensify the fight against corruption. 

Lastly, the government of India should come up with a plan on how to provide temporary employment opportunities to those employees who have lost their jobs. There are many projects which the government can establish to ensure that the citizens are not suffering due to unemployment. For example, the government can come up with infrastructure projects, irrigations projects or even research projects. Such activities would ensure that the government engages the people hence creating jobs for them. It is not right to let people who are highly educated and skilled in performing specific tasks to remain without any job. They can be employed temporarily to ensure that they keep contributing towards the development of the country. 

Conclusion

Unemployment is a major challenge in India. More than 30 million Indians are known to be unemployed because of various economic hurdles. As it has been demonstrated herein, high unemployment rates have adverse consequences for the country. First, it increases poverty levels. Millions of Indians live below the poverty line meaning that they cannot be able to afford some of the most basic needs such as food, healthcare, and education. Secondly, unemployment increases crime rates in the country. Some of the unemployed people get into criminal activities as a way of getting a living. Unfortunately, this has resulted in untold suffering among many innocent Indian citizens. Often, these criminals end up in jail if arrested but most of them get shot dead by the police. 

The other challenge of drug abuse needs to be addressed. Unemployment can cause a lot of stress because of the difficulties in satisfying the daily needs. Consequently, some people resort to abusing drugs. By engaging in drug abuse, many highly educated people have been wasted with some of them ending up contracting deadly diseases while others end up in jail for taking part in drug trafficking. The consequences of corruption are very dire and the Indian government needs to come up with various measures to ensure that the rate of unemployment is reduced. The government should encourage entrepreneurship so that the citizens can establish their businesses. 

Furthermore, the small industries should be developed in the rural areas to ensure that the farmers can add value to their products. Through value addition, the farmers would be able to make more money hence improving their quality of lives. The infrastructure should be developed in the rural areas to ensure that essential services are provided to the citizens. Such efforts would help in reducing the migration of people from the rural areas to urban areas in search for better services and employment opportunities. 

Other strategies that can be used include encouraging direct foreign investment and increasing the rate of industrialization in the country. More industries would create more job opportunities hence reducing the rate of unemployment. The current education system also needs to be improved to ensure that students who graduate are competent enough to work effectively and efficiently. The current global market has witnessed tremendous changes which require a lot to be changed in the education system of India. Reducing the levels of unemployment would increase the ability of India to improve the living standards of its people. Therefore, the government must take the initiative to ensure all avenues are exploited, and more people can get employment. 

References 

Ettner, S. L. (1997). Measuring the human cost of a weak economy: does unemployment lead to alcohol abuse?. Social science & medicine , 44 (2), 251-260. 

Hagan, J. (1993). The social embeddedness of crime and unemployment. Criminology , 31 (4), 465-491. 

ILO projects unemployment rate at 3.5% in 2018: Government. (2018). Retrieved from https://economictimes.indiatimes.com/news/economy/indicators/ilo-projects-unemployment-rate-at-3-5-in-2018-government/articleshow/63202592.cms 

Meier, G. M., & Rauch, J. E. (1995). Leading issues in economic development (Vol. 6). New York: Oxford University Press. 

Singh, S. (2002). Contracting out solutions: Political economy of contract farming in the Indian Punjab. World Development , 30 (9), 1621-1638. 

Unemployment Rate in India: Nearly 31 million Indians are jobless - Times of India. (2018). Retrieved from https://timesofindia.indiatimes.com/home/education/news/unemployment-rate-in-india-nearly-31-million-indians-are-jobless/articleshow/63182015.cms 

Illustration
Cite this page

Select style:

Reference

StudyBounty. (2023, September 16). Unemployment in India.
https://studybounty.com/unemployment-in-india-research-paper

illustration

Related essays

We post free essay examples for college on a regular basis. Stay in the know!

17 Oct 2023
Economics

The Impact of European Colonization on Developing Nations' Politics and Economy

The European powers had at one time dominated most of the developing nations in the hope of achieving political, social, religious, and economic supremacy. These colonial powers instituted political and economic...

Words: 685

Pages: 2

Views: 146

17 Sep 2023
Economics

Nordstrom Inc. Investment Opportunity Proposal

Description of the Investment Project Nordstrom lags on African fashion. The popularity of Afro beats, the Black Lives Matter movement and African music in both Europe and Canada provide an opportunity for...

Words: 2105

Pages: 8

Views: 153

17 Sep 2023
Economics

How Tariffs Can Impact Demand and Supply

Introduction In an article “President Trump Signs Tariff Order on Metals With Wiggle Room for Allies’ give an account of a push by trump to have a 25% tariff on the importation of steel and 10% tariff on the...

Words: 987

Pages: 3

Views: 89

17 Sep 2023
Economics

Technology in the Global Economy

In the past few years, the globalization has escalated considerably due to technological advance and applications. Due to technology, the world has become a village. For instance, in the transport market, vehicles...

Words: 552

Pages: 2

Views: 86

17 Sep 2023
Economics

The Financial Collapse of 2008/2009

What was the event? The event that was selected for this report is the financial crisis occurring between 2008 and 2009, which is otherwise described as the global financial crisis attributed to its underlying...

Words: 829

Pages: 3

Views: 144

17 Sep 2023
Economics

Capital Flow and Currency Crises

Contagion is the spreading of the market disturbances from a particular country to others, a case observable through movements in the capital flows, stock prices, exchange rates, and sovereign spreads. Contagion is...

Words: 331

Pages: 1

Views: 72

illustration

Running out of time?

Entrust your assignment to proficient writers and receive TOP-quality paper before the deadline is over.

Illustration