4. Objectives.
To Understand
1. What is Unemployment?
2. Types of Unemployment
3. Unemployment in Pakistan
4. Most Frequent Types of Unemployment in Pakistan
5. What Are Causes of unemployment in Pakistan (Political & Non Political)
6. Why These causes Occurs
7. Remedies to Decrease Unemployment
8. Conclusion
5. What is Unemployment?
Unemployment is defined as a situation where someone of working age is
not able to get a job but would like to be in full time employment.
Total number of able men and women of working age seeking paid work
Unemployment occurs when a person who is actively searching for employment is
unable to find work.
6. Types of Unemployment
These are the following types of unemployment
1. Demand Deficient Unemployment.
2. Structural Unemployment
3. Real Wage Unemployment / Classical Unemployment
4. Frictional unemployment
5. Voluntary Unemployment.
6. Seasonal Unemployment
7. Disguised / Hidden unemployment
8. Under Employment.
7. 1) Demand Deficient Unemployment
(Cyclical)
This type of unemployment occurs when the demand of workers is less due to
les output of companies.
this is usually occurs when business are in recession period and their productivity is
less hence their demand for employees will be less so they cut cost by reducing
number of employees hired.
8. 2) Structural Unemployment
The Unemployment condition which arise due to change in processes,
technology, Innovation, geographical Conditions is called structural
unemployment,
For example,
Change of manual systems with automated processes
biggest examples,
harvesting machines
coca cola bottle filling process automated.
9. 3) Real Wage Unemployment / Classical
Unemployment
When the wages of worker are kept high from their real value then this attract more
labor force then their demand thus this is called classical unemployment.
A company raise wages its workers then this increase attracts more labor force for
this company results in unemployment.
10. 4) Frictional Unemployment
This occurs when workers are in between jobs mean after leaving one job
finding another job this period creates frictional Unemployment.
For Example ,
Job leavers take time to find another work.
There is always some frictional unemployment in an economy as people take time to
time to find a job suited to their skills.
11. 5) Voluntary Unemployment.
This occurs when workers choose not to take a job or go for a job.
For Example,
at the going wage rate.
, if benefits offered not equal to home expense
unemployed may feel there is no incentive to take a job.
12. 6) Seasonal Unemployment
unemployment may be seasonal based mean periodic based.
e.g.
unemployment rises in winter when there are no tourists.
In Winter Seasons there is no demand for summer clothes.
13. 7) Disguised / Hidden unemployment
When people do not have productive full-time employment, but are not counted in
the official unemployment statistics.
This may include:
People doing job but not productive .
such as sick peoples who get paid but not productive.
14. 8) Under Employment.
This is when people have a job but it is part time or temporary. They would like to work full time, but
only have a part time income.
15. Unemployment in Pakistan
In Pakistan the Evil Unemployment also Increasing day by day with the rapid increase in labor
force, Population, and poor planning's.
Unemployment rate in Pakistan.
16. Causes of Unemployment.
There are certain causes of Unemployment in Pakistan. Which can be
categorized into two (2) categories.
Political
Non political
17. Political
No Proper Planning by Government
Lack of Investments
Lack of Sources
Political Instability
Corruption
18. Non-Political
Increasing labor Force
Increasing Population
Terrorism
Mechanization/Automation
Energy crises
Lack of Talented Peoples
Lack of Technical Education Standards
20. Population Growth Rate
Population growth rate is also a major cause of unemployment In
Pakistan as it is increasing very rapidly.
21. Major Types of Unemployment Faced in Pakistan!
Disguised Unemployment
Frictional Unemployment
Demand Deficit Unemployment
Under Employment
22. Remedies.
Proper Investment Planning's
Promote agricultural sector
Promote Industrial Sector
Overcome on Energy Crises
Hire Talented peoples to brought change
Stable Political envoiremnet for well growth of Industries
Promote small/medium/and large MNC’S
Foreign Investment like MNC’S
Control on Population Growth Rate
Seasonal Businesses can hold other part of Season
