What are the effects of unemployment on our society? (India)


What are the effects of unemployment on our society? (India)

Effects of Unemployment

1. Loss of Human Resources:


The problem of unemployment causes loss of human resources. labourers waste their maximum time in search of employment.

2. Increase in Poverty:

Unemployment deprives a man of all sources of income. As a result he grows poor. Therefore, unemployment generates poverty.

3. Social Problems:


Unemployment breeds many social problems comprising of dishonesty, gambling, bribery, theft etc. As a result of unemployment social security is jeopardized.

4. Political Instability:

Unemployment gives birth to political instability in country. Unemployed persons can easily be enticed by antisocial elements. They lose all faith in democratic values and peaceful means. They consider that Government is worthless which fails to provide them work.

5. Exploitation of Labour:


In the state of unemployment, labourers are exploited to the maximum possible extent. Those labourers who get work have to work under adverse condition of low wages.

All this tells upon the efficiency of labourers greatly influence the pattern of employment opportunities in the country. Being poor, a person does not make any gainful use of existing resources.

6. More Emphasis on Capital Intensive Techniques:

In India, capital is scarce and labour is available in surplus quantity. Under these circumstances, the country should adopt labour intensive techniques of production. But it has been observed that not in industrial sector, also in agriculture sector; there is substantial increase of capital than labour.


In the case of Western countries, where capital is in abundant supply, use of automatic machines and other sophisticated equipments are justified while in our country abundant labour, results in large number of unemployment.

7. Defective Education System:

The education system in our country too has failed to respond to the existing inter-generation gap. It simply imparts general and literary education devoid of any practical content.

India’s education policy merely produces clerks and lower cadre executives for the government and private concerns. The open door policy at the secondary and university level has increased manifold unemployment among the educated that are fit only for white collar jobs.


8. Slow Growth of Tertiary Sector:

The expansion of tertiary sector comprising commerce, trade transportation etc. is limited which could not provide employment even to the existing labour force, what to think about new entrants. As a result of this, there is a wide scale of unemployment among engineers, doctors, technically trained persons and other technocrats.

9. Decay of Cottage and Small Scale Industries:

The traditional handicraft has a glorious past and was the main source of employment especially to the village crafts-men, artisans as well as non-agricultural workers.

Unfortunately, most of rural traditional crafts have been ruined or faded partly due to the unfavorable policy of the foreign rulers and partly due to tuff competition from the machine made goods. Consequently, these laborers were out of job. Most of them turned as landless laborers.

10. Lack of Vocational Guidance and Training Facilities:

As, already discussed, our education system is defective as it provides purely academic and bookish knowledge which is not job oriented.

The need of the hour is that there must be sufficient number of technical training institutions and other job oriented courses at village level. Most of the students in rural areas remain ignorant of possible venues of employment and choice of occupation.

11. Less Means for Self-Employment:

Another hurdle in generation of more employment opportunities is that there are inappropriate means for self employment in rural and semi-urban areas of the country.

Like other developed countries, most of our engineers, technocrats and other well qualified persons do not possess ample means for self employment. They go about in search of paid jobs.

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