Write down the meaning of unemployment. What are the types of unemployment? |
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| Ans : Unemployment is the condition that occurs when a person is actively searching for employment is unable to find work. In other words, unemployment is the situation where the person who are able to work and willing to work, fails to secure work or activity which gives them income or means livelihood.
Again, if there is engagement in some occupation doesn’t necessarily mean absence of unemployment. People who are partially employed or engaged in inferior jobs, though they can find better jobs are not adequately employed.
# Types of Unemployment
i) Voluntary unemployment:- Voluntary unemployment occurs when a person does not want to get employed even though he is able to work.
ii) Involuntary unemployment:- Involuntary unemployment occurs when the individuals are able, willing and searching the job but they are unable to find the job. The various of involuntary unemployment are explained below:
iii) Frictional unemployment:- This type of unemployment occurs due to the people who try to switch over from one job to the other. There are some people who always look out for better job. The main cause of frictional unemployment is imperfect information regarding job vacancy.
iv) Seasonal unemployment:- Seasonal unemployment is defined as the situation when people are not working because their job exists only at some times of the year. Agricultural and construction workers are the example of this type of unemployment.
v) Structural unemployment:- Structural unemployment occurs when people are unemployed because of capital, labor, substitution, which reduces the demand for labor. One of it’s type is technological unemployment.
vi) Cyclical unemployment:- Cyclical unemployment occurs when there is decrease in aggregate demand. When an economy is passing through economic recession, the purchasing power of people decreases. As a result there is fall in aggregate demand for goods and the demand for labor also decreases with it.
vii) Classical unemployment:- It is a form of unemployment that occurs when real wages are forced above the market wage rate. In other words, classical unemployment is caused when wages rates are too high.
viii) Disguised unemployment:- Such types of unemployment exist in agriculture, seasonal work, etc.
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