Causes and Effects of Unemployment in India: With Special Reference to Rural Areas of Yamuna Nagar District of Haryana

Abstract

In underdeveloped countries unemployment is both open and disguised. Presently like all other underdeveloped countries, India suffers mainly from structural unemployment which exists in open and disguised forms. Unemployment which prevails in India is definitely structural in nature. During the 1951-2011 period, population in India increased at an alarming rate of around 2.1% per annum and with it the number of people coming to the labour market in search of jobs also rose rapidly. But due to slow economic growth rate, employment opportunities did not increase most of the time correspondingly, which results into an increase in the volume of unemployment. Apart from structural unemployment, there is Keynesian involuntary unemployment prevails in India. The present paper defines the situation of unemployment in India with special reference to rural areas of Haryana. Haryana is a state where agriculture and Industrial Sector and Service sector all have shown a good performance in the Gross Domestic Product. Since its creation, the economic growth of Haryana is very high. But it is also true that Haryana is also facing the problem of unemployment. The level of development of a country determines the extent of employment or unemployment. Therefore, when a country makes progress size and its production expands, the employment opportunities grow. During the past three decades, the production has expanded in all the sectors of the Indian economy. Absolute level of employment has grown in response to these developments, but was not found enough to remove the unemployment in the economy. However, during the planning period, unemployment in absolute terms has increased, not in a single state but in whole country. This present paper defines the unemployment situation that prevails in India with special reference to Haryana.