The slow rate of economic development: Slow rate of economic development has resulted in the inability of the economy to give employment to the additional labour force. Therefore, unemployment is increasing.
Excessive use of machinery: Industries are undergoing modernization and using more machines and less labour. This reduces employment opportunities. Also, in the agricultural sector, producers are increasingly substituting capital for labour.
Migration of rural population: Agriculture being seasonal, in the offseason, there are no alternative jobs available. So they migrate to urban areas and the number of unemployed increases in urban areas.
Expectation towards employment: Educated people have high expectations about the salary and they want ‘white-collar jobs which are not enough. They prefer to remain unemployed rather than accepting a lower salary. This also causes unemployment.