Meaning
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- It is a situation where a person actively searches for employment but is unable to find something meaningful and remunerative.
- Unemployment is considered to be a key measure of the health of the economy.
- The higher the country’s unemployment rate, its economic growth is less productive.
- It is an indicator of the standard of living of masses.
Reasons of unemployment in India
1. Population growth: High and growing population results in intense job competition.
2. Skill mismatch: Gap between workforce skills and employer demands hinders employability.
3. Informal sector dominance: Large informal sector lacks job security, social benefits, and offers low wages.
4. Lack of industrialisation: Slow industrial growth limits job creation opportunities.
5. Technological disruption: Automation and technological advancements may lead to job displacement.
6. Inadequate infrastructure: Limited infrastructure hampers economic activities and job creation.
7. Policy challenges: Inefficient labour policies and regulatory hurdles create an unfavourable business environment.
8. Global factors: External economic conditions and geopolitical events impact job opportunities in India.
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