With an increase in the population of India, the growth rate of jobs is decreasing thus causing a rise in unemployment leading towards a lot of social economic problems like poverty, drug abuse, criminal activities, etc. The ratio of growth of jobs is much lower as compared with the growth in labour force as the demand for jobs is much more than they are available. Another cause of unemployment is under-employment where a person is not able to get a desired job as per the talent or the expertise and works in a job just for the need. About 80 to 85% of employment in India is in the unorganized sector.
Since opportunities in the rural sector are less, the unemployed move towards the urban areas which cause an imbalance. Illiteracy and reservation system is also a major issue where the deserving candidate finds it difficult to get a job even while securing top ranks whereas an undeserving person works in his/her place as they belong to the reserved category. If problems like these are tackled with a suitable solution, the unemployment or under-employment scenario will automatically change.