Unemployment is defined as people who are jobless, actively seeking work and available to take a job. There are several types of unemployment including frictional, structural, cyclical, regional, technological, seasonal, underemployment, voluntary and involuntary. Common causes include a lack of skills, credit, capital, population increases and economic downturns. While governments aim to reduce unemployment through job creation programs, a natural rate of unemployment between 4-6% is expected due to frictional unemployment from job transitions and structural unemployment from skills mismatches.

2. GroupMembers

3. Unemployment

4. Overview
 Definition
 Types of Unemployment
 Causes of Unemployment
 Solutions for Unemployment
 Role of Government (Pakistan)
 Natural Rate of Unemployment
 Unemployment rate VS Business Cycle
 Why Unemployment cannot be zero?
 Conclusion

5. What is Unemployment?
People who are jobless, actively seeking work, and available to take a job.
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7. Frictional Unemployment
Frictional Unemployment is when a person does not have a job due the
process of moving from one job to another. Furthermore, it could also be
the time period which the worker is searching for job.
Many people suffer from frictional unemployment such as:
University graduates who are searching for a job after graduating from
university
Actors/ theatre actors who are searching for role in a movie/theatre play
Football players who have been released by their clubs and have been put in free agent transfer
waiting for team to sign them

8. Structural Unemployment
Structural unemployment is when a person is unemployed because
there is a lack of demand for worker as the firms are looking for specific
worker who has the specific skills they are looking for.
Structural unemployment happens for several reasons such as:

9. Cyclical Unemployment
Cyclical Unemployment is when there is a greater availability of workers than
there is of job vacancies.
Cyclical unemployment occurs because of the ups and downs of the
economy over time.
It is caused by the contraction phase of the Business cycle.

10. Regional Unemployment
When structural unemployment affects local areas of an economy, it is called
‘regional’ unemployment. For example, unemployed coal miners in South
Wales and ship workers in the North East add to regional unemployment in
these areas.

12. Technological Unemployment
When there is automation or replacement of old technology by the new one
which needs less workers, hence causing unemployment which is called as
Technological Unemployment.
Technological Unemployment occurs because of introduction of new technology
in the production.

13. Seasonal Unemployment
Some sources include seasonal unemployment as another type of
unemployment.
Like its name suggests, seasonal unemployment results from regular changes in
the season. It could also include people who harvest crops. Construction workers
are laid off in the winter, in most parts of the country.

14. Underemployment
It is the situation in which people are unable to find the job according the their
skills and experience, hence willing to do any job even lower than their level of
education and experience.
e.g. A person has a Ph.D. degree but working a job of a salesman.

15. Voluntary Unemployment
Some people do not want to do any job, instead they want to remain unemployed.
It is the unemployment by the once own will.

16. Involuntary Unemployment
A person is separated from remunerative work and devoid of wages although
he is capable of earning his wages and is also anxious to earn them.

18. CausesofUnemployment
Lack of Skill & Work Experience
Lack of Credit Facility
Lack of Capital
Downswing
Rural – Urban Migration
Increase in Population

19. Role of Government (Pakistan)
 It is responsibility of Government of any country to solve certain issues like
unemployment.
 If there is high level of unemployment so they should start development
projects.
 They should give employment to the employed.
 Currently, Government has taken certain steps to remove this problem.
 Although Corruption still big problem are not solved completely.

20. Natural Rate of Unemployment
In every economy the 100% employment is impossible, so according to
economists some people will be unemployed in each and every economy, and
that is called as Natural rate of unemployment.
 Natural rate of unemployment is between 4-6 %
 It is also called as full employment.

21. Of
Unemployment
Rise in Criminal Activity
Violence
Drug Addiction
Terrorism
Social & Moral Evils

22. Solutions for Unemployment
Establishment of Small and Medium
Scale Industries
Vocational & Technical Centers
Encouragement of Construction
Industry Internship Programs
Provision of easy Credit

24. How does the Unemployment rate
fluctuate over the Business Cycle?

27. Frictional
unemployment
Structural
unemployment
Always Exist in the
Labor Market
This PREVENT the
unemployment rate
frame even reaching
zero.

28. Conclusion
To sum in few words, Unemployment is a problem
that leads to some other problems like poverty and
crimes. Therefore we should care about it and find a
way to solve this problem.