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Analysis of Perception of Students on Causes of
Unemployment and Underemployment among
Educated Mass in India
Abhishek Kumar Gupta
Assistant Professor,
Department of Commerce,
D.S.College, Katihar, (Under Purnea University, Purnia), India-854105
Bharat Kumar Meher
Assistant Professor,
Department of Commerce,
D.S.College, Katihar, (Under Purnea University, Purnia), India-854105
Prof.G.L.Puntambekar
Professor,
Department of Commerce,
Dr. Harisingh Gour Vishwavidyalaya (A Central University), Sagar, M.P. India-854105
_____________________________________________________________________________________________
Abstract
Today, employment is the basic need for everyone but for those people who spend a larger part of their life in
studies expect not only a good job but with a handsome salary. But getting employment is a big challenge in
countries like India. The reason for giving such emphasis to employment opportunities in any country is
employment opportunities for citizens in any under developed or developing country, can help to reduce corruption,
remove terrorism. The present situation becoming worse when the well literate people are also not able to grab the
limited opportunities of employment in India or sometimes compelled to do a job or service with less salary or
wages which results in underemployment. These problems can be sorted out when the root causes of unemployment
and underemployment can be analyzed in detail. There are many factors which are responsible for the problem of
unemployment and underemployment in India. This study is an attempt to find out the different reasons or causes of
unemployment and underemployment in India by taking a sampling unit as Kaithar District in Bihar. If these
responsible reasons for unemployment will come into the knowledge of Government, Public and Private Educational
Institutions, educational policy makers, Training Institutions and all the responsible society-makers through this
study then they can take appropriate steps on their own level to overcome these problems and erase the smudge of
educated unemployed.
Keywords – Unemployment, Home-sickness, Underemployment, Kendall's Coefficient of Concordance ________________________________________________________________________________________________________
Introduction
During the first decade of the 21st century, the Indian economy grew at rates in excess of
7 per cent per annum, up from average growth rate of around 5 per cent during the 1990s.
However, these high rates of output growth have not been matched by employment growth
(Chen & Raveendran, 2012). Today, employment is the basic need for everyone but for those
people who spend a larger part of their life in studies expect not only a good job but with a
handsome salary. But getting employment is a big challenge in countries like India. The reason
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue IV, 2020
ISSN No : 1006-7930
Page No: 3395
for giving such emphasis to employment opportunities in any country is employment
opportunities for citizens in any under developed or developing country, can help to reduce
corruption, remove terrorism. And it also plays the biggest role in poverty alleviation.
Employment not only improves the quality of living standards but also important to run the
economic cycle of the country, i.e. to increase the demand of the product by the customer,
production of goods by the producer, supply of goods and services by the supplier. One of the
major problem that India is facing today, is Unemployment and Underemployment.
Unemployment is the biggest hurdle in the path of Economic development of any country
as it also results in low demand. The present situation becoming worse when the well literate
people are also not able to grab the limited opportunities of employment in India or sometimes
compelled to do a job or service with less salary or wages which results in underemployment.
These problems can be sorted out when the root causes of unemployment and underemployment
can be analysed in detail. One of the biggest cause is from the government and industries side
end where they are unable to increase the employment opportunities in comparison to the
increase in population. The employment opportunities are not only decreasing in agricultural
sector but in manufacturing sector as well. “Falling employment in agriculture and
manufacturing sectors is noticed across the states of India during 2011-12 and 2017-18.
Although service sector employment grew in most states, non-manufacturing sector jobs did not
grow much to compensate the employment fall in both agriculture and manufacturing. As a
result, total employment fell in most of states.” (Mehrotra & Parida, 2019) The another biggest
cause is lack of employability among educated people. This paper is focused on both the broader
causes. “Employability is a set of achievements-skills, understandings and personal attributes-
that make graduates more likely to gain employment and be successful in their chosen
occupations, which benefits themselves, the workforce, the community and the economy.”
(Yorke, 2005) Besides that, upto some extent the prevailing education system in India which
lacks in practical training is also responsible for rise in unemployment or underemployment rate
in India. “Education has just become a profession. Colleges are being set up not to give quality
education but to earn money. Every year our educational institutions are producing thousands of
graduates and post graduates. These people refuse to undertake any manual work. Even
agricultural graduates refuse to go to villages and work in the fields. Engineers crave for
government jobs rather than establishing their own industries. Hence our educational system
needs a drastic change. Opening of more private engineering colleges are fuel to the
unemployment problem.” (Dixit, Tiwari, Gupta, Singh, & Gupta, 2011) Apart from the discussed
above problems, the students of such a small district, Katihar, are facing few more problems
which are discussed in this paper.
This study will discover the various loopholes which are responsible for the
unemployment of the people even after completing their studies. The paper will also provide
suggestions to the government, educational policy makers, educational institutions, private
coaching institutions to make some changes in their strategy which will make the students more
competent.
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue IV, 2020
ISSN No : 1006-7930
Page No: 3396
Review of Literature
Many studies have been done in the area of unemployment and underemployment issues,
some of which with different objectives and place are stated here. A study where the authors
have identified lack of communication skills, lack of industry institute interaction, improper
selection of students, lack of competent faculty and outdated curriculum as the most important
problems for low employability among students aspiring to take up career in Human Resources
Management. (S & Kumar, 2014) Similarly, a study has highlighted the different causes
responsible for the unemployment like population growth, illiteracy, poverty etc. He emphasized
two reasons for the unemployment- lack of skills and knowledge of English language and he has
also suggested for improving the quality of education being provided by the institutions and
implementation of government policies not only on papers but on ground level also to overcome
from the problems of unemployment. (Singh, 2018) Moreover, a study where the authors have
expressed their worriedness about rising unemployment rate and its intense nature and drastic
consequences in recent years. The authors have stated that unemployment has many faces but the
dimension that has ruptured the economic growth of India is the problem of educated
unemployment where educated youth on mass-scale are finding it hard to get a job or work.
(Kambar & Dewan, 2018) Nevertheless, a study where the authors have focused on the
employment opportunities and challenges associated with the students of Commerce background
in India. According to them Education and training is found to be important in finding
employment. They have mentioned different job opportunities available in the commerce stream
and some problems of unemployment also, like, Inappropriate Primary Level Education, Lack of
Computer Knowledge, No Practical implications of theoretical knowledge, Home sickness, Lack
of Communication Skills. There is a misconception that there is very less or no job opportunities
for those students who are involved in academic education only. They have tried to minimize the
misconception of the students and have also suggested solutions for the problem of
unemployment (Mohapatra & Meher, 2017)
In this paper we are going to find out the various reasons which are responsible for
educated unemployment and for finding out these reasons we have taken responses from the
actual job seekers i.e. graduate, post graduate and Ph.D. qualified and 12 qualified students. A
person who is actually facing the problem of unemployment or under-employment can best
express the actual problem and reason of unemployment and underemployment that is the reason
the respondents of this study are students only. Many researches have already been done on this
topic but their findings are not properly fitting in the prevailing situation of Katihar District.
Objectives of the study
1. To find out the reasons of unemployment or underemployment among educated people in
Katihar District of Bihar.
2. To provide suggestions and solutions for the problems of unemployment among educated
people in Katihar District.
Hypothesis of the study
H0 : All the reasons mentioned in the study are equally responsible for the unemployment or
underemployment among the educated people of Katihar District of Bihar.
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ISSN No : 1006-7930
Page No: 3397
Research Methodology
The study is Empirical in nature. The data used in this study are primary in nature. The primary
data have been collected with the help of a questionnaire that has been framed in both English
and Hindi language for the purpose of ease in understanding the questions to the respondents.
The questionnaire involves the age, educational qualification of the respondents and their
opinion on the various problems responsible for the unemployment and underemployment in the
Katihar District of Bihar on a likert scale of 1 to 5 where 5 represents most responsible cause and
1 represents least responsible cause. An attempt has been made to collect the data randomly from
500 students (respondents) by distributing a questionnaire to those students. The primary data
have been collected from those students who have already qualified (passed out) intermediate.
The reason for targeting more respondents is to remove those respondents who has given
incomplete information or whose information are baseless and considered as outliers for the
study. Enumerators have been appointed to distribute the questionnaire to 500 students and help
the respondents to fill the data in case of difficulty in understanding any question. Out of these
500 targeted respondents, only 355 respondents have given full and complete information. The
data have been collected during January and February, 2020.
Significance of the Study
Katihar District is counted to be a backward district. The overall literacy rate of the district is
much less than the national average. The Bihar government is trying to make improvements in
Katihar. The district has a great potential of human population. If the population is fought the
ABC of modern education and high technology, then the district can reap its benefit (Dinbandhu
& Kumari, 2020). Today, employment is the basic need and also the desire of the students who
are devoting a big part of their life in the studies. In this study we are discussed on the different
problems which are responsible for unemployment and underemployment even after completion
of the higher studies. If these responsible reasons for unemployment will come into the light of
Government, Public and Private Educational Institutions, Training Institutions and all the
responsible society-makers through this study then they can take appropriate steps on their own
level to overcome these problems and erase the smudge of educated unemployed. This study is
much needed because we have touched some realistic reasons of unemployment in Katihar
District.
Limitations of the study
1. The study is confined only to the Katihar District of Bihar.
2. This study considers only those respondents who are/were enrolled as student in any
college or university within Katihar District.
3. The problems or causes of unemployment or underemployment are related to Katihar
district, the results may not represent the other district or states.
4. The study could target many educated unemployed students but failed to target many
underemployed persons.
Analysis, Results and Discussion of Primary Data
The respondents in this study are students, who have qualified either Intermediate, Graduation,
or Post-Graduation and who have qualified or appearing PhD. Those students have been targeted
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue IV, 2020
ISSN No : 1006-7930
Page No: 3398
who can give responses to the questionnaire appropriately. The response rate was 71% i.e. 355
out of 500 where 108 students were Intermediate Qualified, 150 students were graduated, 75
students were Post Graduate (PG) qualified and 22 students were Ph.D. qualified (including
Ph.D. pursuing). Response from the respondents have taken on the scale of 1 to 5, where 5
means most responsible, 4 more responsible, 3 fairly responsible, 2 less responsible and 1 means
least responsible cause.
Causes of Unemployment and Underemployment in Katihar District
There are various causes of Unemployment and Underemployment in Katihar District. The
major causes which are covered in this study are not covered by the earlier researches. All such
causes are explained below:-
a. Less Industries in the District of Katihar
There are very few industries in the District of Katihar like some Rice Mills, Bricks
manufacturers and Electric equipment suppliers etc. Such few industries are not capable enough
to absorb all pass out students of Katihar District, which results in the migration of students to
other District for their employment.
Table No. 1. Extent to which Less Industries are responsible for Unemployment
Qualification of
Respondents
Scale of 1 to 5
Total Least
Responsible
Less
Responsible
Fairly
Responsible
More
Responsible
Most
Responsible
12th (Intermediate) 9 9 12 9 69 108
Graduation 45 6 24 21 54 150
PG 15 3 9 9 39 75
Ph.D. 3 0 3 6 10 22
Total 72 18 48 45 172 355
Source : Authors’ Computation through SPSS 25
The above table reflects that out of 355 respondents, 217 respondents have favoured the problem
by rating as more responsible and most responsible and 90 respondents have not favoured the
problem by rating as least responsible and less responsible that ‘Less Industries in the District of
Katihar’ is one of the reasons for unemployment in the District. However, 48 respondents have
their opinion that the above problem is neither most responsible nor least responsible and have
rated the problem as fairly responsible. The PG and Ph.D. students which are more senior as
compared to Intermediate and Graduate students also agree with the problem and have rated the
problem as more responsible and most responsible. 64% PG students (48 out of 75) and 73%
Ph.D. students (16 out of 22) have rated the problem as most responsible.
b. Home Sickness among the Students
Home-sickness is a psychological state that is primarily centred on a preoccupation with the
home environment (Tilburg, Vingerhoets, & Heck, 1996). Home-sickness is one of the major
problems in the path of the development of the students. Facilities available in the District of
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue IV, 2020
ISSN No : 1006-7930
Page No: 3399
Katihar, to develop the students of the District of Katihar, are very few and students don’t want
to go outside the town or state due to which they cannot prepare themselves to compete globally
which results in the failure and unemployment of the students.
Table No.2 Extent to which Home Sickness among Students is responsible for
Unemployment or Underemployment
Qualification of
Respondents
Scale of 1 to 5
Total Least
Responsible
Less
Responsible
Fairly
Responsible
More
Responsible
Most
Responsible
12th (Intermediate) 24 12 36 9 27 108
Graduation 48 33 24 21 24 150
PG 24 18 18 3 12 75
Ph.D. 0 1 6 15 0 22
Total 96 64 84 48 63 355
Source : Authors’ Computation through SPSS 25
The above table depicts that Home-sickness is also the reason for unemployment and
underemployment among the students of the District. According to the above table, out of 355
respondents, only 111 respondents, i.e. 31% respondents have favoured the statement and rated
the problem as more responsible and most responsible, but there are 160 respondents out of 355,
i.e. 45% respondents have not favoured the statement and have rated the problem as least
responsible and less responsible. However, there are 84 respondents also who are neither agree
nor disagree with the above statement and have rated the problem of Home-sickness as fairly
responsible for not getting the job.
c. Lack of Communication Skills
Evidence indicates that communication skills are what helped Homo sapiens evolve beyond our
related ancestors, and that these skills have helped humankind develop into the advanced
societies on Earth today (Tattersall, 2000). Being able to communicate properly is perhaps the
most important of all life skills. It enables us to pass information to other people, and to
understand what is said to us. Lack of communication skills or inability to present your thoughts
or suggestions results in big hurdle in the path of carrier building in any field whether it is
entrepreneurship or job.
Table No.3 Extent to which Lack of Communication Skills among Students is responsible
for Unemployment or Underemployment
Qualification of
Respondents
Scale of 1 to 5
Total Least
Responsible
Less
Responsible
Fairly
Responsible
More
Responsible
Most
Responsible
12th (Intermediate) 6 24 27 15 36 108
Graduation 27 9 27 42 45 150
PG 15 12 12 9 27 75
Ph.D. 3 0 6 3 10 22
Total 51 45 72 69 118 355
Journal of Xi'an University of Architecture & Technology
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ISSN No : 1006-7930
Page No: 3400
Source : Authors’ Computation through SPSS 25
The above table reflects that approx. 51% respondents (187 out of 355) with different
qualifications have rated the problem of lack of communication as more responsible and most
responsible which shows their acceptance towards the statement that lack of communication is
big hurdle in the path of obtaining jobs. On the other hand, 30% (105 out of 355) respondents
have rated the problem as least responsible and less responsible which is showing they are
disagree with the statement and from their point of view lack of communication is not
responsible for not getting the job. And 72 out of 355 respondents have rated the problem as
fairly responsible.
d. Lack of Training and Practical Knowledge
The aim of training and practical knowledge is to help students to develop their skills and
abilities that support professional studies and prepare them for work later on. For the students,
the practical training provides an opportunity to learn important skills which will help in
becoming a professional of the future. New and recent marketing graduates rely more on skills
than marketing knowledge for their jobs (Schlee & Harich, 2010). Without training and
practical knowledge of work, students are not able to do satisfactory job at the work place.
Table No.4 Extent to which Lack of Training and Practical Application of Knowledge
among Students is responsible for Unemployment or Underemployment
Qualification of
Respondents
Scale of 1 to 5
Total Least
Responsible
Less
Responsible
Fairly
Responsible
More
Responsible
Most
Responsible
12th (Intermediate) 6 9 18 33 42 108
Graduation 27 9 9 45 60 150
PG 15 6 12 18 24 75
Ph.D. 0 3 3 9 7 22
Total 48 27 42 105 133 355
Source : Authors’ Computation through SPSS 25
The above table shows that all category of respondents, i.e. 75 out of 108 respondents from
Intermediate, 105 out of 150 respondents from Graduation, 42 out of 75 respondents from PG
and 16 out of 22 respondents of Ph.D. have rated the above reason as more responsible and most
responsible. In total, 67% respondents, i.e. 238 out of 355 respondents are in support of the
above statement that there are lacks of training and practical knowledge in the students of the
District. However, there are approx. 21% respondents who are disagree with this problem and
rated as least responsible and less responsible.
e. Qualified on Paper Only
Now a day, in some states, it has become a trend that students have passed their examinations
and have completed their courses, but when they go for practical works or jobs they are not able
to perform as per standard. This situation is prevailing in the society and the reason behind it is,
the students are passing their examination in any way, i.e. by hook or crook, but at the time of
practical application of their knowledge related to their studies, they became laggards.
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue IV, 2020
ISSN No : 1006-7930
Page No: 3401
Table No.5 Extent to which Qualified on Paper without Practical Implications, is
responsible for Unemployment or Underemployment
Qualification of
Respondents
Scale of 1 to 5
Total Least
Responsible
Less
Responsible
Fairly
Responsible
More
Responsible
Most
Responsible
12th (Intermediate) 6 9 24 18 51 108
Graduation 30 15 24 27 54 150
PG 24 3 9 21 18 75
Ph.D. 6 0 6 9 1 22
Total 66 27 63 75 124 355
Source : Authors’ Computation through SPSS 25
The above table reflects that when authors asked the respondents about the above problem, then
199 out 355 respondents accepts that it is true and they have rated the problem as more
responsible and most responsible. However, 93 out of 355 respondents are not agree with the
problem and have rated the problem as least responsible and less responsible. 63 respondents
have their opinion that the above problems are fairly responsible for the problem of
unemployment.
f. Lack of Facilities or Institutes for developing Full potential of Students
Educational facilities are those things that enable the teacher to take out their work well and also
help the students to learn easily. Educational facilities are vital tools in the teaching and learning
process, therefore adequate provision, management and implementation of these facilities are
required (Lawanson & Gede, 2011). Lack of proper training facilities and quality institutes are
big hurdles in the path of success of students.
Table No.6 Extent to which Lack of Facilities or Institutes for developing Full potential of
Students is responsible for Unemployment or Underemployment
Qualification of
Respondents
Scale of 1 to 5
Total Least
Responsible
Less
Responsible
Fairly
Responsible
More
Responsible
Most
Responsible
12th (Intermediate) 9 9 15 21 54 108
Graduation 27 21 12 39 51 150
PG 18 9 6 12 30 75
Ph.D. 0 3 6 6 7 22
Total 54 42 39 78 145 355
Source : Authors’ Computation through SPSS 25
The above table reflects that 63% respondents, i.e.223 out 355 respondents accept that there are
no proper educational facilities and quality institutes are available in the District and they have
rated the above problem as more responsible and most responsible. However, 27% respondents,
i.e.96 out of 355 respondents are not agree with the problem of educational facilities and quality
institutes and have rated the problem as least responsible and less responsible. 39 respondents
have rated the above problem as neither most responsible nor least responsible but fairly
responsible.
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue IV, 2020
ISSN No : 1006-7930
Page No: 3402
Hypothesis Testing
HOA : All the causes of unemployment or underemployment in Kathihar District mentioned in
the study are equally responsible for the unemployment or underemployment among the
educated people of Katihar District of Bihar.
The data related to the causes of unemployment or underemployment in Katihar District
are collected in Likert Scale at 5 points rating scale where the rating of 5 is representing most
responsible cause and 1 representing least responsible cause.
To check whether all causes are equally responsible for employment or
underemployment in Katihar District, ANOVA with Repeated Measures can be used. Though the
data are qualitative in nature but these data have been quantified with the help of 5 Point Likert
Scale. Hence, parametric test can be applied after examining whether the data is normally
distributed or not. In order to apply ANOVA with Repeated Measures it is necessary to check
whether the data collected related to the rating of causes which are responsible for
unemployment or underemployment.
Table No. 7 Tests of Normality
Kolmogorov-
Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
a. Less Industries/Job centers in small towns .288 354 .000 .762 354 .000
b. Home Sickness (Students do not want to
leave home town)
.162 354 .000 .875 354 .000
c. Lack of Communication Skills .194 354 .000 .858 354 .000
d. Lack of Training or Practical Knowledge
among Students
.256 354 .000 .810 354 .000
e. Qualified by Paper Only .201 354 .000 .833 354 .000
f. Lack of Facilities or Institutes for developing
Full potential of Students
.227 354 .000 .812 354 .000
a. Lilliefors Significance Correction Source : Authors’ Computation through SPSS 25
From the above Results of Kolmogorov-Smirnov and Shapiro-Wilk Tests it is found that the data
related to the causes of employment and underemployment in Katihar District is not normally
distributed. Therefore, ANOVA with Repeated Measures (a parametric test) cannot be applied.
Here, in order to check whether the causes are equally responsible for unemployment and
underemployment in Katihar District, Kendall's Coefficient of Concordance which is the non-
parametric version of ANOVA with Repeated Measures has been applied.
Journal of Xi'an University of Architecture & Technology
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Page No: 3403
Table No. 8. Ranks
Mean Rank
a. Less Industries/Job centers in small towns 3.76
b. Home Sickness (Students do not want to leave home town) 2.68
c. Lack of Communication Skills 3.40
d. Lack of Training or Practical Knowledge among Students 3.84
e. Qualified by Paper Only 3.59
f. Lack of Facilities or Institutes for developing Full potential of Students
3.73
Source : Authors’ Computation through SPSS 25
Table No. 9 Test Statistics of Kendall's Coefficient of Concordance
N 354
Kendall's Wa .081
Chi-Square 144.226
df 5
Asymp. Sig. .000
a. Kendall's Coefficient of
Concordance Source : Authors’ Computation through SPSS 25
The application of Friedman Test shows that the Significance value is more than 0.05 so it can be inferred that all the reasons are equally responsible for the unemployment or underemployment among the educated people of Katihar District of Bihar.
Conclusion
From the above analysis, results and discussion, it can be observed that the causes covered in this
study are not significantly unequally responsible. The mean ranks used while calculating
Kendall's Coefficient of Concordance, depict that Lack of Training or Practical Learning for
Students is most responsible cause for unemployment and underemployment in Katihar District
followed by Less Industries/Job the town followed by Lack of Facilities/Institutes for Students
for the development of their full potential. Moreover, many of the students also agreed that most
of the students are qualified on paper but not by knowledge due to which many basic concepts
are uncleared among the students as a result they are unable to perform well specially at the time
of job selection process. Nevertheless, many educated people are lacking of a systematic
approach required to solve a realistic problem related to job as they are only connected to
theoretical approach of their books. For this the government should concentrate on imparting
quality education with practical training in the state from Primary to Higher education either at
free-cost or at minimal-cost with advanced infrastructure facilities, innovative teaching methods
and computer literacy. The faculty-student ratio in most of the Government Colleges, is very less
which should be improved as soon as possible. In many cases the lack of communication skills is
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue IV, 2020
ISSN No : 1006-7930
Page No: 3404
the biggest challenge for the students to crack many interviews. They are unable to present their
thoughts and arguments before the interviewer. Many companies do what to visit and select
students from such colleges and institutes directly through campus placement due to this reason.
There are many examinations like Companies Secretaries (CS), Common Aptitude Test (CAT),
etc. where the medium of instructions is only English. In such cases the students do not even feel
eligible to go for the examination as they are learning in different medium of instructions other
than English. The district has very rich and fertile land which is favourable for agriculture.
Paddy, jute, Makhana, banana, wheat, maize and pulses are produced in Katihar. The
government can think about banana chips industries, different products can be made from
Makhanas, despite of exporting them to other states or countries. It will help in increase in
employment of the people. One more solution for this problem is development of
entrepreneurship skills among students so that they could employ themselves in case of difficulty
in finding any appropriate job. It is the need of the hour to conduct such kinds of study in
different places of India so where the perception of students can be taken and problems can be
found out to take necessary steps to eliminate such obstacles in getting employment
opportunities.
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