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AUTHOR
MANIKANDAN.K
1st Year BBA. LLB(HONS)
132202100
SAVEETHA SCHOOL OF LAW
SAVEETHA INSTITUTE OF MEDICAL AND TECHNICAL SCIENCE (SIMATS)
Chennai-600077
Email id –manikandan934577@gmail.com
Phone no : 9345776774
CO – AUTHOR
DR.N.SOFIA
ASSISTANT PROFESSOR
SAVEETHA SCHOOL OF LAW
SAVEETHA INSTITUTE OF MEDICAL AND TECHNICAL SCIENCE (SIMATS)
Chennai – 600077
Email id - sofian@saveetha.com
Phone no : 9600843486
A STUDY ON CAUSES OF UNEMPLOYMENT IN INDIA
AUTHOR: MANIKANDAN.K
CO – AUTHOR: DR. SOBHA JASMINE
ABSTRACT:
KEYWORD:
Crowding out, wage rate, labour force, unemployment, and inflation.
Unemployment occurs in the economy when a person who is actively looking for
work is unable to find a position that suits them. Due to the rising unemployment rate, the
Indian economy is currently experiencing a significant slowdown.As a result, there is a
stagnating rate of growth and high unemployment rates due to a lack of capital equipment.
Lower economic productivity is the effect of underutilizing labour and human resources due
to unemployment. This will make the population's poverty, hunger, and decreased per capita
income even worse. However, frictional unemployment is inevitable and can exist in the
economy with an unemployment rate between two and three percent. Despite the steps the
government has taken to lower unemployment rates, the rate of unemployment in the nations.
According to Rudolf Gyan D. Mellow (1969), is "a state in which an individual is not
in a remunerative work notwithstanding his desire to do so." Reiterating their definition from
1975.Despite being initially identified in the 1950s, unemployment in India continues to be a
source of concern. Up to the first Five Year Plan was drafted in the years 1950–1951, the
Government of India took very few initiatives to create jobs during that time. To achieve the
objective of employment growth and labour force expansion, this plan established the
framework for overall and sectoral development in the medium term. The purpose of this
study is to gain more knowledge on the state of unemployment in India and the relationship
between unemployment and the GDP and inflation rate of the nation. Data from 2000 to 2019
were used in our study. Regression analysis is utilised in this study to examine the connection
between India's unemployment rate, GDP, and inflation rate. Regression analysis is a method
for identifying relationships between two or more variables. GDP and the rate of inflation are
two independent variables, whereas unemployment is a dependent variable. A linear
regression analysis is used to display the final study's findings. Using linear regression
analysis, we can quickly ascertain how India's GDP and inflation rate affect unemployment
there. GDP has a significant impact on unemployment. Lower unemployment rates in India.
After independence, the topic of employment has reverberated differently depending on the
Plan period.
It was not anticipated that unemployment would become a significant issue during the
early planning stages of development. From one Five Year Plan to the next during the 1950s
and 1960s, it was believed that labour intensive industries and a sustainable growth rate
would avoid any increase in unemployment.
Instead of increasing at the planned rate of 5% per year, the economy grew at a slower
rate of around 3.5%, and the labour force expanded at a faster rate than employment,
doubling the number of unemployed people between 1956 and 1972 from about 5 to 10
million and raising the unemployment rate from 2.6 to 3.8%.The unemployment rate in India
in 2021 was 5.98%, down 2.02% from the previous year. The unemployment rate in India for
2020 was 8.00%, up 2.73% from the previous year. The unemployment rate in India for 2019
was 5.27%, down 0.06% from 2018. In 2018, India's unemployment rate dropped by 0.03%
from the previous year to 5.33%.
The nations on this list are ordered by unemployment rate. Countries use different
methods for calculating and presenting the unemployment rate. Some countries only include
insured unemployed people, some only include welfare recipients, some only include
disabled people and other people who are permanently jobless, some only include people who
choose (and can afford to) not work while supporting a family, some only include college
students, and so on. Additionally, there may be variations in the minimum standards, and
some may view someone as employed even if they are just tangentially connected to the
labour market (for example, working only one hour per week). [1]
There may be variations in the age restriction. For instance, Eurostat bases its calculations on
individuals aged 15 to 74.
Unemployment is gradually increasing not only in the state, but also in the country
level. It also affects the nation’s economic growth by decrease in national income.
Unemployment also affects a person’s standard of life and family. People should have the
correct knowledge about this unemployment to prevent themselves. So this research provides
the data about the knowledge of people on unemployment and giving them solution to live
life with better opportunities and suitable jobs
LITERATURE REVIEW:
Khem Chand et al.,(2017) have made a study on the economic growth and
unemployment rate, an Empirical study of a Indian economy. The study aims to study the
effect of economic growth on unemployment rate in India post. The study was based on
exploratory research design. The data was collect from secondary sources like newspaper and
the world bank database spssv20 was used to analysis the data. The finding of the study
stated the economic growth has negative impact on unemployment rate. The authors
concluded the study by describing the unemployment problem can be dissolved with the
inflow of direct foreign investment and economic growth.
METHODOLOGY
The research method followed here is empirical research. A total of 217 samples have
been collected out of which all samples have been collected through convenient sampling
methods. The sample frame taken here is poonamalle in Chennai, Tamil Nadu. The
independent variables are gender, age, Educational qualification, marital status, Employment
status, monthly income, area of residence. The dependent variables are causes of
unemployment, crisis, poverty and types of unemployment in India. The statistical tools used
here are chi square.
METHODOLOGY:
The research method followed here is descriptive research. A total number of 58
samples have been collected out of which all samples have been collected through convenient
sampling method. The sample frame taken here in public areas in and around Chennai, Tamil
Nadu. The independent variables are age, gender, educational qualification, occupation,
marital status. The dependent variables are study of unemployment in Tamil Nadu, causes,
reasons, effect and knowledge of people in it.
ANALYSIS:
TABLE 1
Below 16 20%
19-25 44 55%
26-32 19 23.8%
33-39 1 1.2%
Total 80 100%
Source: Sample survey 2022
LEGEND: The above table represents the age group of the respondents.
INFERENCE: The maximum of the respondents has chosen 19-25. While the minimum of
the respondents has chosen 33-39.
TABLE 2
Male 40 50%
Female 39 48.8%
Transgender 1 1.2%
Others 0 0
Total 80 100%
Source: Sample survey 2022
Private 22 22.5%
Government 23 28.7%
Self 14 17.5%
Business 12 15%
Others 9 11.3%
Total 80 100%
Source: Sample survey 2022
Married 18 22.5%
Unmarried 48 60%
Widow 13 16.2%
Seperated 1 1.2%
Total 80 100%
Source: Sample survey 2022
FIGURE 4
LEGEND: The above table shows the marital status of the respondents.
INFERENCE: The maximum of the respondent were unmarried. While the minimum of the
respondents were separated.
TABLE 5
10001-20000 25 31.3%
20001-30000 20 25%
Total 80 100%
Source: Sample survey 2022
FIGURE 5
LEGEND: The above bar chart shows the monthly income of the respondents.
INFERENCE: The maximum of the respondents earn 20001-30000. While the minimum of
the respondents earn more than 30000.
TABLE 6
UG 31 38.8%
PG 9 11.3%
Others 3 3.7%
Total 80 100%
Source: Sample survey 2022
FIGURE 6
LEGEND: The above bar chart shows the educational qualification of the respondents.
INFERENCE: The maximum of the respondents chosen secondary education. While the
minimum of the respondents chooses others.
TABLLE 7
Urban 22 27.5%
Rural 28 35%
Total 80 100%
Source: Sample survey 2022
FIGURE 7
LEGEND: The above bar chart shows the living area of the respondents.
INFERENCE: The maximum of the respondents chosen to live in rural. While the
minimum of the respondents lives semi-rural.
TABLE 8
Total 80 100%
Source: Sample survey 2022
FIGURE 8
LEGEND: The above bar chart shows the major causes of unemployment in India.
INFERENCE: The maximum of the respondents chosen lack of communication skill is the
main causes for unemployment. While the minimum of the respondents chose lack of
education.
TABLE 9
Agree 21 26.3%
Netural 19 23.7%
Disagree 6 7.5%
Total 80 100%
Source: Sample survey 2022
FIGURE 9
LEGEND: The above bar chart shows the response of respondents to a particular
statement.
INFERENCE: The maximum of the respondent strongly agreed. While the minimum of the
respondents were strongly disagreed.
TABLE 10
IS EDUCATION SYSTEM THE PROBLEM OF UNEMPLOYMENT
Yes 66 82.5%
No 14 17.5%
Total 80 100%
Source: Sample survey 2022
FIGURE 10
LEGEND: The above bar chart shows the response of respondents to a particular
statement.
INFERENCE: The maximum of the respondent responded Yes. While the minimum of the
respondents chosen to respond No.
TABLE 11
Total 80 100%
Source: Sample survey 2022
FIGURE 11
LEGEND: The above bar chart shows the suggestion to reduce unemployment from the
society.
INFERENCE: The maximum of the respondent chosen ‘ensuring education and health’.
While the minimum of the respondents chosen ‘government need take some steps for
employment’.
TABLE 12
Yes 39 48.8%
No 41 51.2%
Total 80 100%
Source: Sample survey 2022
FIGURE 12
LEGEND: The above bar chart shows the view of respondents to a statement.
INFERENCE: The maximum of the respondent chosen yes. While the minimum of the
respondents chosen no.
TABLE 13
LEGEND: The above table shows the rating of the respondents to steps taken by
government to solve the unemployment problems.
INFERENCE: The maximum of the respondents rated 3 for steps by government. While the
minimum of the respondents rated 9, 10 for the steps by government to solve unemployment
problems.
RESULTS:
1. The maximum of the respondents has chosen 19-25. While the minimum of the
respondents has chosen 33-39.
2. The maximum of the respondent chooses male. While the minimum of the
respondents chose others.
3. The maximum of the respondent chooses government occupation. While the
minimum of the respondents chosen others.
4. The maximum of the respondent chooses government occupation. While the
minimum of the respondents chosen others.
5. The maximum of the respondents earn 20001-30000. While the minimum of the
respondents earn more than 30000.
6. The maximum of the respondents chosen secondary education. While the minimum of
the respondents chooses others.
7. The maximum of the respondents chosen to live in rural. While the minimum of the
respondents lives semi-rural.
8. The maximum of the respondents chosen lack of communication skill is the main
causes for unemployment. While the minimum of the respondents chose lack of
education.
9. The maximum of the respondent strongly agreed. While the minimum of the
respondents were strongly disagreed.
10. The maximum of the respondent responded Yes. While the minimum of the
respondents chosen to respond No.
11. The maximum of the respondent chosen ‘ensuring education and health’. While the
minimum of the respondents chosen ‘government need take some steps for
employment’.
12. The maximum of the respondent chosen yes. While the minimum of the respondents
chosen no.
13. The maximum of the respondents rated 3 for steps by government. While the
minimum of the respondents rated 9, 10 for the steps by government to solve
unemployment problems.
DISCUSSION:
1.The maximum of the respondents has chosen 19-25. While the minimum of the respondents
has chosen 33-39, this is because the survey was conducted in an library where mostly
students were present there.
2.The maximum of the respondent chooses male. While the minimum of the respondents
chose others, because male were visiting the library more than female.
3.The maximum of the respondent chooses government occupation. While the minimum of
the respondents chosen others, because most of them working under government.
4 The maximum of the respondent were unmarried. While the minimum of the respondents
were separated, because unmarried people were mostly in the country then the married ones.
5.The maximum of the respondents earn 20001-30000. While the minimum of the
respondents earn more than 30000, most of them may students, so their income at low rate is
expected.
6.The maximum of the respondents chosen secondary education. While the minimum of the
respondents chooses others, Because they studied not properly.
7.The maximum of the respondents chosen to live in rural. While the minimum of the
respondents lives semi-rural. Cause nowadays people are like to live in rural places.
8.The maximum of the respondents chosen lack of communication skill is the main causes for
unemployment. While the minimum of the respondents chose lack of education, this is the
view of respondents.
9.The maximum of the respondent strongly agreed. While the minimum of the respondents
were strongly disagreed, this is the view of respondents.
10.The maximum of the respondent responded Yes. While the minimum of the respondents
chosen to respond No, this is the view of respondents.
11.The maximum of the respondent chosen ‘ensuring education and health’. While the
minimum of the respondents chosen ‘government need take some steps for employment’, this
is the view of respondents.
12.The maximum of the respondent chosen yes. While the minimum of the respondents
chosen no, this is the view of respondents.
13.The maximum of the respondents rated 3 for steps by government. While the minimum of
the respondents rated 9, 10 for the steps by government to solve unemployment problems,
considering steps as ratings has been taken.
SUGGESTION:
Despite the measures taken by the government, India remains a country experiencing
severe unemployment problems. This section seeks to propose strategies for reducing
unemployment in India. It is desirable to reduce tax rates and increase government spending
which will eventually increase the aggregate demand and the rate of economic growth. Lower
tax rates increase the disposable income of people and thus increase consumption and
purchasing power leading to higher aggregate demand (AD). The interest rates should be
decreased which would lower the cost of credit and encourage people to spend and invest.
Also, the exchange rates would get reduced and which would lead to increase export.
Reduction of income tax would work as an incentive for the unemployed as well as
employed. It is an attractive proposition which motivates the unemployed to join the labour
market and the existing workforce to strive harder. Lower Corporation Tax encourages the
young entrepreneurs to start their own ventures. Government should invest more in human
capital development to increase the employability in our country. It should also emphasis
more on imparting quality education to the people. Education should be imparted in such a
way that it should empower the youth with the necessary skills which can make them
employable. It has been observed that unemployment is especially concentrated in certain
regions. In order to overcome this geographical disparity, the government could incentivize
firms to set up operations in these areas by giving tax breaks. Alternatively, financial
assistance can be provided to unemployed workers who moved to established areas which
have high employment. Vocation courses are recognized as an important part of under-
graduation and post-graduation collages. Government should emphasis in inculcating these
courses in the primary level and makes it compulsory part of the curriculum so that people so
that people become proficient in their early stage of life. Career Counseling should be
provided within the school and should reach all the students.
LIMITATION:
One of the major limitations of this study is sample frame there is a major constraint
is the sample frame as it limits is a small area thus it proves to be difficult to explore it to a
larger
Population another limitation in this study is sample size of 80 which cannot be used to
exploration the population of country, state or a city.
CONCLUSION:
Employment is a significant feature for economic development. India is the second
most population and seventh major country in the world. The main objective of the study is to
analyse the government initiatives for reducing unemployment. The data was collected
through online questionnaire. The study found that there is a relationship between gender and
unemployment and there is no relationship between gender and unemployment the alternative
hypothesis rejected. Concluding that unemployment is one of the major causes of all financial
crises which then leads to mental stress. Being unemployed makes everything upside down in
an individual’s life and is one of the basic needs of an individual in the current scenario.
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PLAGARISM: