Here, it is a brief presentation regarding what is unemployment and how it may be a threat to our society at our unknowingly. Thank you for reading it.

1. B AVINASH
PGS-506e
Department of Agronomy
Institute of Agriculture, Palli Siksha Bhavana
Visva Bharati, Sriniketan

2. Content :
• What is unemployment ?
• Classification
• Kinds of it
• Causes of such phenomenon
• Effects / Cost of this disaster
• Solution and Conclusion

3. What is unemployment ?
Unemployment means lack of jobs even for
those who are able and willing to work at the
prevailing wage.
In general sense, it may be defined as a person
who is physically fit, mentally sound, well
qualified and willing to work, but that client
doesn't get any job.

4. Classification :
Unemployment
Involuntary
Cyclical
Disguised
Structural
Seasonal
Frictional
Voluntary
Voluntary Involuntary

5. • A person is out of job because
of his own desire to not to
work on the prevalent or
prescribed wages.
Voluntary
• 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.
Involuntary

6. Kinds of it :
• Cyclical Unemployment :
When business cycles are at their peak, cyclical unemployment will be
low because total economic output is being maximized. When economic
output falls, the business cycle is low and cyclical unemployment will rise.

7. • Disguised Unemployment :
Disguised unemployment exists where part of the labor force is either left
without work or is working in a redundant manner where worker
productivity is essentially very much less.

8. • Structural Unemployment :
Here, a person either goes out of the job or remains unemployed for
prolonged period of time till he acquires new skills.

9. • Seasonal Unemployment :
Seasonal unemployment occurs at certain seasons of the year. Refers to a
situation where a number of persons are not able to find jobs during
some months of the year.

10. • Frictional Unemployment :
It is defined as the no. of unemployed persons under the condition that
the no. of job vacancies equals the no. of job seekers who somehow fail
to get the job.

11. Some other kinds of unemployment are :
 Underemployment:
• It usually refers to that state in which the self employed working people
are not working according to their capacity.
 Open Unemployment:
• It is a condition in which people have no work to do. They are able to
work and are also willing to work but there is no work for them.

12. Causes of Unemployment :
• Rapid Population Growth
• Economic Inflation
• Economic Recession
• Changing Technology
• Demand for highly skilled labour
• Global Competition
• Illiteracy
 Over 70% of total labour force is illiterate or educated below
primary level
 Agriculture – backward farming 70 % population depend on it

13. Cost of Unemployment :
At individual level
Mental stress
Loss of self esteem
Directly linked to poverty
At social level
Civil unrest
Law and order problem ( naxalist , thefts etc)
At economic level
Loss in output
Low GDP for economy
Increasing in Govt. Borrowings, fall in tax revenue

14.  Policies to reduce Unemployment :
 NREGA
 Sampoorna Grameen Rozgar Yojna
 Swarna Jayanti Gram Swarozgar Yojna
 Prime Minister’s Employment Generation
Programme
 National Food for Work Programme
 Prime Minister's Integrated Urban Poverty
Eradication Program (PMIUPEP)
 The Swaran Jayanti Rozgar Yojana
 Jawahar Gram Samridhi Yojana

15. Possible Solutions of unemployment :
 Frictional unemployment solution
1. If unemployment benefits were reduced unemployed workers might
become more willing to work (shift the aggregate supply of labour to the
right)
2. Improve awareness of available jobs
 Structural unemployment solution
1. Adult retraining programmes
2. Government gives subsidies to firms that provide training for workers.
3. Enhance geographic mobility by building affordable housing or give
subsidies/tax breaks
4. Set up apprenticeship programmes to allow people to gain skills

16.  Seasonal unemployment solutions
1. Encourage people to take different jobs in their off season
2. Reduce unemployment benefits
3. Greater flow of information
 Disguised unemployment
Create employment opportunities in the urban areas and rural area