Exploring the Social and Economic Factors Determining Unemployment in India

Unemployment remains a substantial challenge in India despite the desirable level of economic growth. This paper investigates the relationship between key financial variables such as GDP, inflation, education and employment gap and unemployment rates. Data from 2010 to 2024 illustrates high unemployment rates coexisting with GDP growth, revealing a structural economic impediment. The unemployment inflates alongside economic crises, which theorists like Phillips have linked to inflation, and the COVID-19 pandemic called for flexibility. There is also an argument suggesting that graduates generally possess a mismatch in educational skills in и relationship with the employment market, such as practical job abilities, which only exacerbates unemployment. Despite future visions like the Skill India Mission being encouraging, change across all scopes of education and training is necessary. Further, inflation acts as an erosion of consumers' spending ability, thereby hindering the development of services where cost centers are related to job creation, leading to instability within the labor market. The survey puts forward the critical interrelated blocks: attendance at vocational training schools, education in compliance with the market's needs, and facilitation of workforce mobility. Varied policies such as PPPs, encouraging youth to participate in start-ups and crafting actionable programs targeting unemployment have been provided. The ultimate goal is to design policies that support inclusive growth and decrease the economic costs of unemployment in terms of economic development while depriving certain parts of the population.