unemployment topics.

1. UNEMPLOYMENT
PRESENTED BY: ASHNA ANILKUMAR

2. WHAT IS UNEMPLOYMENT?
“Unemployment refers to a situation in which the
workers who are capable of working and willing to work
do not get employment”

3. What are the main types of
unemployment?
There are three main types of unemployment
 CYCLICAL UNEMPLOYMENT
 STRUCTURAL UNEMPLOYMENT
 FRICTIONAL UNEMPLOYMENT

4. CYCLICAL UNEMPLOYMENT
Cyclical unemployment occurs with changes in economic activity over the
business cycle.
During economic downturn, a shortfall of demand for workforce results in a
lack of jobs being available for those who want to work. The opposite
situation occurs when demand strengthens.

5. STRUCTURAL UNEMPLOYMENT
Structural unemployment occurs when there is mismatch between the jobs
that are available and the people looking for work. This mismatch could be
because jobseekers don’t have the skills required to do the available jobs.
Structural unemployment tends to be longer lasting than other types of
unemployment. This is because it can take a number of years for workers to
develop new skills.

6. FRICTIONAL UNEMPLOYMENT
Occurs when a worker moves from one job to another and spends time trying
to find his or he ideal job. Exists even when there is full employment. This type
of unemployment is generally shorter term

7. OTHER TYPES OF UNEMPLYMENT
There are some other types of unemployment. That are also important to
consider
 UNDEREMPLOYMENT
 HIDDEN UNEMPLOYMENT
 SEASONAL UNEMPLOYMENT

8. UNDEREMPLOYMENT
Underemployment occurs when people are employed, but would like and are
available to work more hours. There are two categories of underemployed
people. First, part-time workers who would prefer to work additional hours.
Second, people who usually work full time, but are currently working part-
time hours.

9. HIDDEN UNEMPLOYMENT
Hidden unemployment occurs when people are not counted as unemployed
in the formal labor market statistics, but would probably work if they had the
chance. For example, someone might have looked for work for a long time,
given up hope and stopped looking, but still wish to work. This people are
sometimes referred to as “discouraged workers”

10. SEASONAL UNEMPLOYMENT
Seasonal unemployment occurs at different points over the year because of
seasonal patterns that affect jobs.

11. Unemployment Rate from 2007 to 2017 (India)

12. CAUSES OF UNEMPLOYMENT
 Slow economic growth
 Increased population growth
 Slow industrial growth
 Seasonality of agriculture occupations
 Joint family system
 Low rates of savings and investment
 Ineffective economic planning