Unemployment Crisis in India

Unemployment Crisis in India and Its Solution 2024

Unemployment Crisis in India

Despite the growing economy in the country, the youth are unemployed. According to the India Employment Report 2024, two out of three graduate youth in the country are unemployed. In December 2023, a highly qualified unemployed woman Neelam Azad, who was from Haryana, breached the security in the Parliament. Only with this motive, does it enter into the problem. Let you know that unemployment is becoming a big disaster in the country. This unemployment will not only affect the personal level but will also make a difference to the economy of the entire country.

You will get all this in this article. We will find out and also discuss the solution to the unemployment problem like the increasing epidemic in the country what action the government should take for employment for the youth and what action you people can also take. Read this article till the end to solve the problems of the country.

Current State of Unemployment in India

Economy growth is increasing very fast. If we look at it, the country’s GDP has reached around 3.9 trillion, which means the growth will reach 5 trillion in the coming years from 8 to 9, but such economic growth will not be possible until the unemployment rate in the country remains low. The global financial crisis will increase.

YearUnemployment Rate (percent)
20249.2 (June 2024)
20238.003
20227.33
20215.98
20208.00
20195.27
20185.33
20175.36
20165.42
20155.44
20145.44
20135.42
20125.41
20115.43
20105.55
20095.54
20085.41
Source: CMIE

If we look at 2008 to 2024, the unemployment rate has almost doubled. In 2008, it was 5.41% and according to the report of 2024, the unemployment rate is 9.2%, which means double. Secondary and Senior Secondary qualified young people, it was 29.1% for those who have completed higher education compared to uneducated who can neither read nor write, whose employment rate was at 3.9% and all these highly qualified people are applying for jobs like peon.

Unemployment Crisis in India
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In Madhya Pradesh, PhD holders and engineers applied for peon jobs, and similarly in Uttar Pradesh, 23 lakh people applied for 368 peon jobs, out of which there were engineers and PhD holders. In Gujarat, doctors also applied for peons, and in many places of the country like Kerala, Chhattisgarh, and Bihar, highly qualified people apply for such jobs, but despite being so qualified, they are still applying for jobs that do not match at all with these higher qualified educated young people.

Major Contributing Factors

What is the root cause of this, the only reason is that the youth are not getting quality education and do not have skills. I am not saying these things just like that because I have also gone through this entire useless education system from school to college.

This whole system is bad where one has to study by rote to get marks in schools and get into a good school and whatever one has studied is forgotten within months of the exam because in schools only fees and marks are taken from students by rote and this helps them in their school. To get admission and grow their business, many people like me must have gone through the same condition after schooling. When schooling is over, colleges and coaching institutions come.

Causes of Unemployment in India

Lack of Skill Development

So what knowledge and skills will such students have that will be eligible for the job? Because these people have never gone to college and are just sitting with the degree, what is the fault of students, they are useless. The education system is like this in the entire country and for job preparation, the uneducated degree holders are targeted by the coaching staff and are taught only those things which they have not studied at the time of the degree, and then they have to pay a huge fee.

Population Growth

The biggest challenge for the coaching staff is that the population is increasing day by day and there is a skill gap among the youth. If compared to the developed countries, there has been more growth in the service sector in the country. Compare that with manufacturing, know that the work of skilled workers is done. This sector requires highly skilled workers but due to the lack of skills among young educated people in the country, they are not able to get jobs.

Causes of Unemployment in India

Automation and Technology

The biggest impact has been due to the arrival of new technology in the country such as AI (Artificial intelligence) which has taken away the jobs of many people. Why that work used to take many hours, a person can do that work in just a few seconds.

Economic Slowdown

If the unemployment rate is high in any country, then the economic growth there can not be sustainable because if unemployment remains high, then the purchasing power of the people will decrease. It will be less and the overall demand and supply in the country will also be less, the government will also get less tax, so this country’s GDP will also see a decline in the long run.

Read More:- Fastest Growing Business In India 2025

Impact of Unemployment on Society

Staying unemployed till this time will make you financially unstable and you may also face health-related issues like anxiety, stress, and depression. This will be a big threat to the country too because if people suffer from such health-related diseases.

If people remain in contact with diseases, the economic growth of the country will also be affected and due to unemployment in the country, the crime rate will increase and riots and violent protests can also be seen because people will not have jobs and they will demand if their demand is not available. If they were not heard then they might have started rioting or they might have started violent protests as was seen in Bangladesh.

The Role of Education in Solving Unemployment

Reforming the Education System

You are wondering what is the solution to all these problems and what can be done to get out of unemployment. There should be an improvement in the education system so that the child learns, he/she should get an education along with practical and in the education policy of the government, there should be a skills development course in schools and colleges where students start developing skills like communication skills. Creativity and innovation skills, digital skills, questioning and answering, all these skills have started developing.

Supporting Small Businesses

Small and medium enterprises (SMEs) are key job creators in India. By supporting these businesses through tax incentives, better access to capital, and reduced red tape, more employment opportunities can be generated.

Read More:- Fastest Growing Business In India 2025

Address the Skill Gap

The third thing is what can you people do? Look, the government keeps coming and going, their job is to make us copy. Do you think if any new XYZ government comes? So you will get the work done and a job will also be created. Look, as the population is increasing, jobs are also being created. You should focus on learning some skills that are in high demand in the market or start your own small business. See, the government can give you a free ration and take the board from you but the government will not improve the condition of anyone’s house, you will have to improve it.

Conclusion

The unemployment crisis in India is a multifaceted issue that requires a holistic approach to solve. With a growing population and a rapidly evolving job market, the key lies in education reform, skill development, and promoting entrepreneurship. While government initiatives have shown promise, there’s still a long way to go to ensure sustainable job creation for all.

Read More:- How To Start A Startup With No Money In India 2024?

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