Unemployment in India: Understanding Challenges, Causes, and Solutions

Add Review

Register now for latest MBA Exam & Admissions Updates

April 12, 2024

Updated on April 12, 2024


A report titled "India Employment Report 2024", released in early April 2024 by the International Labour Organisation (ILO) and the Institute for Human Development (IHD), emphasizes how young people in India are dealing with high jobless rates. Unemployment remains one of India's most serious socioeconomic problems, despite the growth in GDP and other economic parameters. This GD Topic by MBAUniverse.com on ‘Unemployment in India’ explores the state of unemployment in India today, looks at its root causes, and highlights possible remedies. Read this article to be well-prepared as unemployment in India is a significant GD Topic for MBA admissions and other competitive admissions/exams.


This GD Topic titled ‘Unemployment in India’ discusses the status of unemployment in India, underlying reasons, and potential solutions to improve the state of work force. Since unemployment in India is an important GD Topic for MBA Admission and other competitive admissions/exams, read this article to be well prepared.  

Alert! MBA Admissions 2024 Closing for Top CMAT, MAT Colleges | Apply Now 
Sparsh Greater Noida | Closing Soon | Apply Now IBA Bangalore | Closing Soon | Apply Now
JIMS Rohini Delhi | Closing Soon | Apply Now Jaipuria Noida, Lucknow | Closing Soon | Apply Now
S P Jain Global Mumbai | Closing Soon | | Apply Now MET MUMBAI | Closing Soon | Apply Now
JIMS Rohini Delhi | Closing Soon | Apply Now CIMP Patna PGDM Admission 2024 | Apply Now
SSIM Hyderabad | Closing Soon | Apply Now Mahindra University HYD | Closing Soon | Apply Now
August MAT Exam 2024 Registration Open – Apply Now

Key Highlights of the India Employment Report 2024 by IHD and ILO

The IHD-ILO report noted that youth employment and underemployment increased between 2000 and 2019 but declined during the pandemic years. However, unemployment among youths, especially those with a secondary level of education or higher, has intensified over time. “In 2022, the share of unemployed youths in the total unemployed population was 82.9 per cent.


The share of educated youths among all unemployed people also increased, from 54.2 per cent in 2000 to 65.7 per cent in 2022. Among the educated (secondary level or higher) unemployed youths, women accounted for a larger share (76.7 per cent) than men (62.2 per cent). This indicates that the problem of unemployment in India has become increasingly concentrated among the youth, especially educated youths and women in urban areas,” it said.


Macroeconomic policies should incorporate agendas for creating jobs; labor-intensive manufacturing should be given priority; micro, small, and medium-sized businesses should be assisted; agricultural productivity should be raised; and investments in green and blue economies should be made. Investing in and regulating industries like the care sector and the digital economy, encouraging inclusive migration and urbanisation policies, and making sure that labour laws and regulations are strong enough to address market disparities are some strategies to improve the quality of jobs.  

Alert! MBA Admissions 2024 Open for Top Colleges | Apply Now
SCMS Cochin | Closing Soon | Apply Now Rajagiri Business School Kochi | Apply Now
SSIM Hyderabad | Closing Soon | Apply Now Sparsh Greater Noida | Closing Soon | Apply Now
CIMP Patna PGDM Admission 2024 | Apply Now Delhi School of Business (DSB) | Apply Now
Rajagiri Business School Kochi | Apply Now Jaipuria Noida, Lucknow | Closing Soon | Apply Now
MET MUMBAI | Closing Soon | Apply Now NDIM New Delhi (NDIM) | Closing Soon | Apply Now

Reasons for Unemployment in India

India's unemployment problem is due to several factors such as rapid population growth, skill mismatch, slow industrial growth, the dominance of informal economy, and educational differences. Surplus of labour due to lack of sufficient job creation is also a big reason. Many job seekers lack necessary qualifications, resulting in structural unemployment. Slow industrial growth also limits the number the workers that can be absorbed in formal sector in India.

Solutions to Address Unemployment

Solving India's unemployment problem requires a multi-pronged approach that includes support from stakeholders including government, private sector, and civil society. Key strategies to reduce unemployment include:

  • Stimulating economic and industrial growth
  • Promoting skill development
  • Promoting entrepreneurship
  • And, increasing the social security and support systems in area of health and housing  


India's socioeconomic development is severely hampered by unemployment, which has far-reaching effects on people's lives, communities, and the country as a whole. It will take coordinated efforts to address the core causes of this complex issue, which include population growth, skill mismatches, slow industrial growth, the dominance of the informal economy, and educational disparities. India can reduce unemployment and create a more just and prosperous future for all of its citizens by putting in place targeted interventions that support entrepreneurship, skill development, industrial growth, social safety nets, and inclusive growth.  

Latest GD Topics: Read 200+ Group Discussion Topics 2024 for MBA Admissions  
India Vs Maldives: How Lakshadweep Can Become A Major Tourist Destination
One Nation One Poll’: Benefits are More for India
Viksit Bharat@2047: A Timely Program for India's Transformation
The Deepfake Dilemma: Unravelling the World of AI-Generated Content
Narayana Murthy's Call for a 70-Hour Workweek: A Debate on Pros and Cons 
Peer Pressure and Family Pressure - Can it make or break your future?
Aim for the Moon, if you miss, you may hit a Star
Foreign Universities in India: Will it raise academic standards and benefit Indian students, parents?
World War 3: Will Russia Ukraine Conflict result in Third World War?
Union Budget 2023-24: Expectations & Key Highlights
Digital Public Goods (DPG): India’s approach and opportunities for the World
Tech Layoffs: Top Tech Layoffs At Big Tech Companies In 2022
India as the world’s 5th largest economy: Set to Become 4th by 2022
Indian Digital Rupee: A landmark financial initiative?
Moonlighting in India - What, Why and Should of this HR nightmare
5G Telecom Services in India – Benefits and Impact
Buy Now Pay Later (BNPL): A convenience or a trap
National Logistics Policy: Will it Reduce Costs & Improve Competitiveness of India
Agnipath: Will it Prove a Military Transformation Scheme?
Union Budget 2022: Key Highlights; will it propel post pandemic Economic Growth?
Crypto Currency: A bright future or just a fad
Privatization of Public Sector in India: A right step or selling family silver?
Social Media: A boon or a bane for society and individuals
E-Learning: A substitute for Classroom Learning?
Farm Laws Repealed: PM MODI withdraws the three farm laws
Central Bank Digital Currency (CBDC): Impact on Indian Financial System & Cryptocurrency