What are the Causes and Effective Solutions of Unemployability? – The Million Dollar Question!

Unemployment in India
Unemployment in India

Unemployment in India is a complicated issue with an array of interlaced and overlapping causes; although, it is possible to distinguish a few key causes. This article will endeavor to depict and diagram these causes, which change from full-scale level variables (for example by and large moderate monetary development just as populace increase) to more small scale level factors (for example the joint family system of business).

Understanding the reasons for unemployment is the initial phase in starting to correct this serious issue and making a society in which everybody can earn their bread.

This is a deep-rooted issue, which is hollowing the situation.. And, this is leading towards a scary future which is giving goosebumps to everyone.

Do you know according to Centre for Monitoring Indian Economy (CMIE), “an economics and business think-tank, as of 2018, unemployment in India had risen to 31 million individuals looking for jobs? The lowest unemployment rate in India was 3.4% (July 2017) but has now risen to 7.1%.”?

Well, evaluating the reasons for the increasing ratio of unemployment has witnessed a sudden jump. This is a turning out to be a serious problem for the nation. 

Here are some factors that are counted as the core reason behind unemployment.

The following are the main causes of unemployment:

1. Increased Population Growth

Increase in the populace has been significant over the 50 years. The nation’s general population is comprised of more than 1.3 billion individuals, second just to that of China. Also, India’s population is anticipated to surpass China’s constantly 2024; it will ultimately be the most crowded nation for the aggregate of the 21st century. As the nation’s monetary development can’t keep populace development, this leads to a bigger portion of the general public being jobless.

2. Slow Industrial Growth

The industrialization has been a significant factor; its pace of development is nevertheless genuinely slow. There is a major emphasis on industrialization across the country, which has raised the Indian economy. But, industrial growth continues to generate a couple of new openings by and large when contrasted with increments in the populace. It is counted as one of the prominent causes of unemployment in India.

3. Low Economic Growth Rate 

Since the Indian economy is relatively underdeveloped, economic development is extensively slower than it could be. This implies as the populace expands, the economy can’t stay aware of requests for business and an increasing share of individuals can’t look for some kind of employment. The outcome is insufficient levels of jobs across the nation.

The low GDP of the country has been resulting in creating additional problems of candidates, who are skilled but do not have the right set of skills. Low salary scale and salary disparity are some more problems faced by the youth of the nation.

4. Low Rates of Saving and Investment

India lacks enough capital no matter how you look at it. Addition to this, savings are low and the outcomes are low—which relies upon investment funds—is low. If the investment rate is high, it would lead to new opening and opportunities. Thus, the economy would be kickstarted.

5. Shortage of Means of Production

Production is limited by the measure of materials, gear, and energy accessible to fuel it. Deficiencies of crude materials, fuel, and power mean diminished creation of products, which consistently brings about diminished accessibility of employments.

6. Ineffective (or absent) Economic Planning

This is a prominent source of unemployment in India. The supply and demand of labor must be in balance to make sure that those who need jobs can get them; otherwise, many individuals will compete for one job.

employability skills
employability skills

7. Expansion of Universities

The quantities of professional laborers have expanded. No doubt, the quantity of colleges in India has expanded in the last decades –right now there are around 385 colleges all through the nation. The outcome is that more individuals are instructed and become salaried specialists, while unfortunately; the supply of white-collar jobs occupations does not coordinate their numbers.

Indeed, the educated unemployment rate in India has been increasing and giving the restless night to the nation. 

8. Loss of Small-scale Cottage Industries

Industrial development has made its marks and little scale businesses extensively less financially alluring, as they don’t provide the economies of scale created by large scale manufacturing of products. Irregularly, the interest for ragged, mass-delivered products overcomes the longing for merchandise that is suspiciously assembled by those with some mastery and ability. The result is that cabin and little scale industry has fundamentally declined, thus, craftsmen have turned out to be jobless.

Now, things don’t end here. Another serious issue has been intimidating the nation is unemployability.

Unemployability, the Main Reason for Unemployment
Unemployability, the Main Reason for Unemployment

Since the early days of civilization, employment has been a major measure of success and societal status, apart from being the basis of survival. Today, it has grown to become a major area of concern on a national level. Despite scores of reputed colleges branching out more, several new graduation courses introduced, and booming industries, the unemployability, and unemployment in India only seem to be on a rise.

Before digging dip into the unemployability issues and problems, let’s first understand what is “unemployability”?

Unemployability – Being unemployable means that a job-seeker does not have the required qualities and soft skills that an unambiguous job demands, despite being technically proficient.

Being unemployed and unemployable is two, unlike issues. The state of being without a job is known as unemployment and on the other hand, not have the acceptance due to lack of skills is called unemployability. 

Unemployability – A Bigger Problem than Unemployment!

Unemployable means: “not acceptable for employment as a worker.”

Unemployment has been one of the leading challenges infecting the global economy. An overwhelming 13.3 percent of India’s population in the age group of 15-29 years is unemployed. Unfortunately, the unemployment figures continue to ascend, almost every industry, be it technology, hospitality, or corporate, is facing a scarcity of skilled workforce (especially unemployed engineers). The real problem, as research suggests, is finding suitable candidates to fill jobs.

Statistical of Unemployability         

  • More 50% of these graduates lack basic employable quality and skills.
  • Around 60 lakh students graduate each year in various disciplines.
  • The Gross Enrolment Ratio (GRE) for Indian higher education has been just 34% which is very low in evaluation to developed countries that have a GRE of 56%
  • 10 lakh people join in the labor force every month for the coming 20 years who all have insufficient training. This leads to major layoffs.
  • 80% of the higher education system in India is yet to be built for the year 2030
  • GER is 50% of the world’s average
  • 50 lakh+ students graduate per year. Only some are fit to be employed.
  • “More than 50% of India’s youth lack basic skills and quality” – reports
  • GER (Gross enrolment ratio) for higher education in India is 34% which is atrociously less as evaluated to other developed nations (56%).
  • 10,00,000 people join the labor force every month for the next 20 years without satisfactory training
Unemployability-a bigger problem than unemployment
Unemployability-a bigger problem than unemployment

What are the Reasons behind Unemployability in India?

Mismatch of skills is a major problem that has resulted in increasing unemployability in India. Youth who just pass out of college, hoping to start working, but soon realize that the employers are seeking for skills that they never even learned during graduation is a harsh reality to accept.

This is when these candidates end up going through bitter transition and root frustration in them. Thus, in most cases, they are been forced to change their stream to get a job. On the other hand, companies go through a tough time in filling the position of skilled candidates in their firms. And, this is leading towards increasing the numbers of employability in the nation.

Low campus recruitment is an issue that seems like never-ending. But, the repercussion of this problem is quite serious and leading the generation towards a dead end.

The shortage of reliable institutions that offer updated, quality, industry orientated higher education. The biggest example of this issue is that the count of people with a degree is quite high, but candidates with jobs are comparability quite low.  

Absence of fundamental abilities and business enterprise training: Skills mismatch is firmly connected to this one. The general preference has so been agreeable to conventional obsolete scholastics with poor associations between the schools and the private sector. This also lacks in preparing of saddling fundamental abilities that most undergraduates possibly have.

The Solution:

There is a desperate need to address the majority of these issues, if not all when we consider taking care of the issue. The arrangement isn’t as overwhelming as it might appear. The IT sector has viewed as a reasonable alternative for most Indian youth. The IT part has endured numerous tempests and with the digitization of each division, there will consistently be an interest for IT individuals.

While essential graduation can be viewed as a mandatory endorsement, understudies need to put resources into employable aptitudes in any of the trending technologies of their choice. This can be a professional preparing, where understudies get hands-on involvement in the refreshed advances.

Unemployment rate
Unemployment rate

For instance, Premium IT instructive Institutions like IIHT offer courses in completely prepared labs under the table direction of expert and ensured specialists. These expert mentors are IT engineers, who have worked in the business for quite a long while and can give understudies a firsthand record of what is expected of them. IIHT likewise has tie-ups with a few top organizations and have an elite position cell that helps understudies in landing the position they had always wanted. Converse with an IIHT specialist today to perceive how you can prepare yourself more employment!

Imparting Higher Education, the Unconventional Way

It is high time that the Indian education system should take some effective and serious measures to improve the quality of education. No doubt, India is known to have some of the most prestigious colleges, but the problem of unemployability is still there.

The percentile of unemployed engineers than passed engineers narrates the seriousness of the situation the right way. (the difference is huge)

Providing Proper Counseling to Students

Well, it is not only important for institutions to impart quality education, but also provide a high quality of career counseling to them. It is generally examined that candidates are unable to choose between an expected career and the right career.

Online Job-ready Training and Course

Some online education platforms offer an employability enhancement program that includes mock interviews, grooming, online course and much more to candidates. This not only makes candidates job-ready but also infused them with the right set of skills and knowledge.

Even colleges can set labs with the help of this platform when it comes to boosting the count of placement numbers. One of the most trusted names for this job enhancement program is edWisor Campus Employability Labs. It is a lab setup within a college premise that has computer infrastructure which is loaded with edwisor job readiness technology & content vetted by 250+ companies. Enrolled undergoes readiness programs skilling, assessment, grooming & placements by attending only 1 weekly lab class of 3 hrs duration. Artificial intelligence is used to ensure discipline & monitoring of students throughout lab sessions using facial recognition webcams.

Unemployability is a nerve-wracking problem that been leading to a more profound affair. Unemployability and unemployment in India are problems that seem like infecting the entire youth of the nation.

In the nutshell, effective efforts are needed to produce readily- employable technical manpower in the country. The upgrading infrastructure, redesigning of curricula, improvising teaching-learning methods and attracting well-qualified teachers are some steps on the list.


edWisor started in 2015 with a vision to transform the professional career of millions of students and professionals who are struggling achieve their Dream Career. We have created a unique ecosystem with a combination of ed-tech and HR-tech platforms. edWisor provides complete job-skills in technologies as per industry standards required for trending career paths such as Data Scientist, MEAN Stack Developer, etc. At the same time meeting industry demands with a Skill Pool of job-ready, up-skilled and assessed candidates under edWisor eco-system. Thus providing an end to end solution to the skill and employability problem faced by industry and students/professionals. With over 5000+ careers transformed and over 250+ Hiring Partners hiring from edWisor. We are India’s first platform to offer ‘Guaranteed Interviews’.

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