3. Table of Contents
Sr. No. Topic
1) What is Unemployment ?
2) Causes of Unemployment
3) Classification of Unemployment
4) Types of Unemployment
5) Bibliography
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4. What is Unemployment ?
In economics, unemployment refers to the condition of unwanted job losses, or willing
workers without jobs. The willingness of the unemployed worker to be employed is the key
to the idea.
A person who is :-
Physically Fit
Mentally sound
Well qualified
Willing to work at prevailing wage rate
BUT DOES NOT GET JOB, THIS SITUATION IS CALLED UNEMPLOYMENT
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5. Causes of Unemployment
Rapid population growth.
Economic inflation.
Economic recession.
Changing technology.
Demand of high skilled labor.
Global competition.
Illiteracy.
Over 70% of total labor force is illiterate or educated below primary level.
Agriculture- backward farming 70% population.
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6. Classification Of Unemployment
VOLUNTARY UNEMPLOYMENT - Unemployment that
results when resources which are willing and able to
engage in production choose not to produce output.
These are resources (especially labor) that decide to
leave one job, often in search of another.
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INVOLUNTARY UNEMPLOYMENT - The contrast to
voluntary unemployment is involuntary unemployment, in
which resources are forced out of work. Involuntary
unemployment is also known as Forced Unemployment.
8. SEASONAL UNEMPLOYMENT REFERS
TO A SITUATION WHERE A NUMBER OF
PERSONS ARE NOT ABLE TO FIND JOBS
DURING SOME MONTHS OF THE YEAR.
EXAMPLE- : AGRICULTURE IS A
SEASONAL ACTIVITY. THERE IS AN
INCREASED DEMAND FOR LABOR AT
THE TIME OF SOWING, HARVESTING,
WEEDING AND THRESHING. IN
BETWEEN THERE IS LITTLE OR NO
DEMAND FOR LABOR. AGRICULTURAL
LABOR FINDS HIMSELF UNEMPLOYED
DURING THIS PERIOD. THIS IS CALLED
SEASONAL UNEMPLOYMENT.
1) Seasonal
Unemployment
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9. 2) Cyclical
Unemployment
Cyclical unemployment, occurs when
there is not enough aggregate
demand in the economy to provide
jobs for everyone who wants to work.
Demand for goods and services fall,
less production is needed and less
workers too.
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10. Unemployment caused by
technological changes or new
methods of production in an
industry or business.
Example: The evolution of the
automobile assembly plant. In the
beginning, everything on the line was
done by humans in order to build a car.
The assembly line itself was a great
technological innovation. Today, robots
are employed for much of the hand-work
humans used to do.
3) Technical
Unemployment
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11. This is a type of voluntary unemployment that
arises because of the time needed to match job
seekers with job openings. Just as friction
always takes place before the slider comes to its
final position on the surface, people need time
to find the best job, thus voluntarily rubbing
back and forth between choices and staying
unemployed
Example: When you make up your mind and set
off looking for a better job and abandoning the
current one, you are in the frictional
unemployment labor force.
4) Frictional
Unemployment
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12. This unemployment arises due to
structural change in dynamic economy.
Unemployment caused by massive
mismatch of skills or geographic
location is noted as structural
unemployment.
EXAMPLE: HEAVY MANUFACTURE (MINING) -
MANUFACTURE NOW INVOLVES MACHINES SO
HUMANS ARE NO LONGER NEEDED FOR THE
HARDER WORK.
STRUCTURAL UNEMPLOYMENT POSES MORE
OF A PROBLEM BECAUSE WORKERS MUST SEEK
JOBS ELSEWHERE OR MUST DEVELOP THE
SKILLS DEMANDED. THE PROCESS IS FULL OF
PAIN AND FRUSTRATION, AND MAY LEAD TO
NEGATIVE IMPACTS ON SOCIETY.
5) Structural
Unemployment
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13. 6) Disguised
Unemployment
When more people are engaged in some
activity than the number of person
required for that, this is called disguised
unemployment
Example:
An agricultural field require 3 laborers
but people engaged in this activity is 6
then this unemployment for 3 labors is
called disguised unemployment
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14. Bibliography
Special guidance of our respected teacher Dr. Jaya Garg.
India Today Magazine, March 2014.
The free encyclopedia “Wikipedia”,
http://en.wikipedia.org/wiki/Unemployment.
‘India in Statics’ A District Level Study by G.S. Bhalla (2013) Vol. 2
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