The main causes of unemployment in India are:-
• HIGH POPUALTION GROWTH: The rapid increase in population of our country during the last decade has further worse the unemployment problem in the country. Due to rapidly increasing population of the country, a dangerous situation has arisen in which the magnitude of unemployment goes on increasing during each plan period.
• JOBLESS GROWTH: Although India is a developing country, the rate of growth is inadequate to absorb the entire labour force in the country. The opportunities of employment are not sufficient to absorb the additions in the labour force of the country, which are taking place as result of the rapidly increasing unemployment in India.
• INEFFICIENT AGRICULTURAL AND INDUSTRIAL SECTORS: Industrialisation is not rapid in our country and industrial labour finds few job opportunities. As enough other employment opportunities are not available, agriculture is the principal area of employment in our country. Thus, pressure on land is high, as about 2/3 of the labour force is engaged in agriculture. Land is thus overcrowded and a large part of the work force is underemployed and suffer from disguised unemployment.
• INAPROPRIATE EDUCATION SYSYTEM: After remaining at schools and colleges for a number of years men and women come out in large numbers, having gained neither occupational nor vocational training nor functional literacy from which all future skilled, educated professional, and managerial manpower is drawn.
• INAPPROPRIATE TECHNOLOGY: In India, while capital is a scarce factor, labour is available in abundant quantity. However, not only in industries, but also in agriculture producers are increasingly substituting capital for labour. On account of abundance of labour, this policy is resulting in large unemployment.
• WEAKNESSES IN PLANNING TECHNIQUES: The growth strategy underlying our plans has been found to be faulty. Lack in infrastructure development and poor labour-intensive techniques planning has made unemployment a severe issue in our Indian economy.