Unemployment

The national sample survey organisation
(NSSO) has define unemployment on three
concepts namely: usual statu...
TYPES OF UNEMPLOYMENT
    Unemployment can be divided into two basic
                      types:

(a) Unemployment that r...
Frictional unemployment
 In this unemployment and unfilled vacancies exist
  simultaneously because it take time to match...
STRUCTURAL UNEMPLOYMENT:
 This type of unemployment results when the unemployed
are mismatched with job vacancies because ...
SEASONAL UNEMPLOYMENT:

 The term seasonal unemployment is self explanatory. Seasonal
  unemployment occurs in such activ...
UNEMPLOYMENT DUE TO
           DEMAND DEFICIENCY:
 It is defined as unemployment that occurs when there is not
  enough a...
Voluntary and Involuntary
              Unemployment

 The basic idea of the division is that a worker is voluntarily
  u...
DISGUISED UNEMPLOYMENT:

 The term disguised unemployment is used to refer to
  individuals who are not economically invo...
Main causes of unemployment in
             India
 The main causes of rural employment are explosive
  population growth,...
Final Unemployment
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Final Unemployment

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Final Unemployment

  1. 1. Unemployment The national sample survey organisation (NSSO) has define unemployment on three concepts namely: usual status, weekly status, and daily status.
  2. 2. TYPES OF UNEMPLOYMENT Unemployment can be divided into two basic types: (a) Unemployment that results from deficient aggregate demand. (b) All other types of employment that are-:  Frictional  Structural  Seasonal  Due to demand deficiency  Disguised
  3. 3. Frictional unemployment  In this unemployment and unfilled vacancies exist simultaneously because it take time to match job requirements and the skill of job seekers appropriately.  The unemployment that exists during this matching process is frictional unemployment, which strictly defined is unemployment that corresponds to unfilled vacancies in the same occupations and the same places.  This type unemployment is unavoidable for the efficient working of an economy. It exists because people move and should be encouraged to move from places, jobs and industries where their productivity is low to places where productivity is high.
  4. 4. STRUCTURAL UNEMPLOYMENT: This type of unemployment results when the unemployed are mismatched with job vacancies because they do not have the right skills or live in places there top opportunities do not exist. Such mismatching creates structural unemployment. Technological change could lead to a rise in structural unemployment in three ways: (a) an acceleration of the overall rate of productivity change (b) an increased concentration of productivity gains in select group of industries (c) a change in the qualitative impact of productivity increases on the occupational and skill structure of the demand for labor. (d) finding job for the structurally unemployed required more than a search in the local market, workers must be retrained or jobs or works must move to new locations.
  5. 5. SEASONAL UNEMPLOYMENT:  The term seasonal unemployment is self explanatory. Seasonal unemployment occurs in such activity as construction, agriculture, canning and the tourist trade in which weather or the calendar determine when production can be carried on they govern the level of demand.  For purposes of measuring business cycle and the strength of the demand in the labor market, it is normal to use unemployment statistic that have been seasonally adjusted. This adjustment does not remove the seasonal component of unemployment from the total, it merely spreads it evenly over the year.
  6. 6. UNEMPLOYMENT DUE TO DEMAND DEFICIENCY:  It is defined as unemployment that occurs when there is not enough aggregate demand to provide work for the whole labor force no matter how it is trained or deployed. This implies that in the economy as in whole there are more unemployed workers then the job vacancies.  Formerly knows as ‘cyclical unemployment', demand- deficiency unemployment has the virtue of indicating that there may not be adequate demand even at a business cycle peak.  Demand-deficiency unemployment can be eliminated by stimulating aggregate demand pro conscious use of monitory and fiscal policies.
  7. 7. Voluntary and Involuntary Unemployment  The basic idea of the division is that a worker is voluntarily unemployed when he has been offered a job that he could fill but continued for a search for better job at higher wages rather that accept the offer.  The worker is involuntarily unemployed if he would be willing to accept a job for which he is qualified at the prevailing wage or below it, but cannot find a job.  Voluntary is frictional and involuntary is demand deficiency
  8. 8. DISGUISED UNEMPLOYMENT:  The term disguised unemployment is used to refer to individuals who are not economically involved to a degree which uses their full capabilities even though there are economic activities to which they apply a part of their time.  The departure of such individuals from their place of employment may leave some parts of the area’s economic activity unaffected.  This fact prompted some writers to suggest for them a zero marginal product. But their departure might reduce the amount of effort available to the community at critically junctures in the agricultural work cycle and thus erode the annual agricultural productivity.
  9. 9. Main causes of unemployment in India  The main causes of rural employment are explosive population growth, backward and seasonal agriculture, poverty, decay in small scale and cottage industries, defective social system, less means of self-employment, joint family system and immobility of labor.  On the contrary causes of urban unemployment are slow pace of growth, defective education system, more emphasis on capital intensive techniques, slow growth of tertiary sector, lack of vocational and training facilities, defective employment planning etc.  In developed countries, the volume of employment, at a given time is determined by the aggregate demand. A shortage in aggregate demand is the main cause of unemployment in developed countries.

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