RELATIONSHIP BETWEEN UNEMPLOYMENT AND INFLATION-IMPACT OF UNEMPLOYMENT AND INFLATION ON INDIA'S ECONOMIC GROWTH

Abstract

Unemployment is a significant issue in modern India, as it is in many other countries around the world. The issue of joblessness in India is explored in this paper. This study's information is secondary data collected between 2010 and 2020. Unemployment (UNEMP) serves as the dependent variable, with Gross Domestic Product (MKTP) and Inflation (INF) serving as the independent variables. The findings show that due to increased uncertainty, inflation significantly negatively impacts economic performance in India. The use of a log of real GDP, the nature of the regression model applied, and the fact that the impact of human capital and physical capital has been controlled explain why unemployment has not significantly affected India's real GDP. India's economic performance has been dramatically boosted by the country's physical and human capital investments. Human capital investment boosts labour force productivity, which in turn boosts output.

In contrast, physical capital investment increases the amount of capital per unit of labour, which in turn can boost productivity per worker. As a result, productivity rises and the economy benefits. The leading causes of unemployment are the rapid increase in the world's population, the dearth of available jobs, and the inefficiency of the public sector. Through its strategies and resources, the Indian government may seek to attract foreign investors to facilitate the modernization of India's agriculture sector and the creation of new jobs in the private sector.