what is unemployment,types,causes,effects

1. UNEMPLOYMENT

2. Definition of Unemployment
 Unemployment occurs when a person who is
actively searching for employment is unable to find work.
Unemployment is often used as a measure of the health of
the economy.
 The most frequent measure of unemployment is the
unemployment rate, which is the number of unemployed
people divided by the number of people in the labor
force.

3. Measurement
 Economists typically focus on the unemployment rate. The
unemployment rate is expressed as a percentage, and is
calculated as follows:
 Unemployment rate=unemployed worker/total labor
force*1oo
 As defined by the International labor organization,
"unemployed workers" are those who are currently not
working but are willing and are able to work for pay,
currently available to work, and actively searching for
work.

4. Unemployment Rate Since 1960

6. OPEN UNEMPLOYMENT
• Open Unemployed refers to those individuals who are ready
to work at current wage rate and possess qualifications but
do not get any job are said to be openly unemployed .
• Generally, in developing countries like India where labour
supply increases at higher rate than employment
opportunities.

8. UNDER EMPLOYMENT
• When labourers cannot utilise their capabilities and for
certain period accept less capable work compared to his
qualification is said to be underemployed.
• They may be employed either on part-time basis, or
undertake a job for which lesser qualification is required.
• For example a Post Graduate may work as a clerk for
which only S.S.L.C. is enough.

10. SEASONAL UNEMPLOYMENT
 It occurs during certain seasons of the year. In
some industries and occupations like
agriculture, holiday resorts, ice factories etc.,
production activities take place only in some
seasons. So they offer employment for only a
certain period of time in a year. People
engaged in such type of activities may remain
unemployed during the off-season.

12. DISGUISED UNEMPLOYMENT
• It is a situation in which more people are doing work than
actually required. Even if some are withdrawn, production does
not suffer.
• Generally, when labourers are not paid in monetary terms,
disguised unemployment take place.

14. STRUCTURAL UNEMPLOYMENT
• This type of unemployment arises due to drastic changes in the
economic structure of a country. These changes may affect either
the supply of a factor or demand for a factor of production.

16. Cyclical Unemployment
 Cyclical or demand deficient unemployment occurs when
the economy is in need of low workforce. The demand for
labor increases with the economy in the growth phase.
Again, when the economy passes through depression,
demand for labor decreases and the extra workers are
released as the unemployed labor force.

17. Frictional Unemployment
 Frictional unemployment is a type of unemployment that
arises when workers are searching for new jobs or are
transitioning from one job to another. It is part of natural
unemployment and hence is present even when the
economy is considered at full employment.

18. Industrial Unemployment
 Those illiterate persons who are willing and able to work
in factories or industries in urban areas but cannot find
work fall in this category. As rural-urban migration
increases, urban unemployment also does.

19. Educated Unemployment
 Educated unemployment arises when a large number
of educated people are unemployed or unable to secure
a job. There has been an alarming phase of
mass unemployment among the educated youth.

20. CAUSES OF UNEMPLOYMENT IN INDIA
1. Rapid growth of population.
2.Underdevelopment of the economy.
3.Slow growth in the agricultural sector.
4. Defective system of education.
5.Absence of manpower planning.
6.Degeneration of village industries.
7. Inappropriate technology.
8.Slow growth of industrial sector.
9. Immobility of labour.
10. Jobless growth.

21. CAUSES OF UNEMPLOYMENT IN INDIA
11.Absence of employment opportunities.
12.Seasonal Employment.
13.Joint Family System.
14.Insufficient Rate of Economic Progress.

22. EFFECTS OF UNEMPLOYMENT
• Financial insecurity.
• Stress / Worry about bills.
• Decline in self-confidence.
• Depression
• Anxiety
• Stress
• Tension

23. EFFECTS OF UNEMPLOYMENT
 Affects nutrition.
 Schooling leading to educational disadvantage.
 Fear of poverty
 Boredom can lead to drug or alcohol abuse
 Loss of income tax for the government
 Decline in population in rural areas. People forced to leave an area in search
of employment

24. Suggestions to Solve Unemployment
Problem
Change in industrial technique:
Production technique should suit the needs and means of the country. It
is essential that labour intensive technology should be encouraged in
place of capital intensive technology.

25. Suggestions to Solve Unemployment
Problem
Policy regarding seasonal unemployment:
Seasonal unemployment is found in agriculture sector and agro based
industries.
To remove it:
(a) Agriculture should have multiple cropping,
(b) Plantations,dairy and animal husbandry should be encouraged

26. Suggestions to Solve Unemployment
Problem
More assistance to self employed people:
Most people in India are self employed. They are engaged in agriculture,
trade, cottage and small scale industries etc. These persons should be
helped financially, providing raw materials and technical training.

27. Suggestions to Solve Unemployment
Problem
Industries in co-operative sector:
Industries in co-operative sector should be encouraged.
Kerala Govt. set up a textile mill covering 600 unemployed persons on
co-operative basis. This is a novel approach to fight against
unemployment. Different State Govt. should take necessary steps in
this direction.

28. Suggestions to Solve Unemployment
Problem
Full and more productive employment:
The main objective of country employment policy should be to increase
employment opportunities . Govt. should adopt a policy that provides
employment to people.

29. Suggestions to Solve Unemployment
Problem
Population control:
The growth of population should be checked in order to solve
unemployment, problem. Family planning programme should be
implemented widely and effectively.

30. Team members :
 L . VISHNU VARDHAN -17MIS1134
 SYED UMER – 17MIS1120
 Y.P SRINATH REDDY – 17MIS1157
 K. SAI PRAKASH – 17MIS1152
 D. HARSHA VARDHAN – 17MIS1160