Sunday, September 28, 2014

Economics Notes on Unemployement and its Different Types

Meaning of Unemployment : It is a situation when a person is able to work, but doesn't get an opportunity to work. Even if he gets an opportunity to work he is not gainfully employed.

Types of Unemployment
1. Voluntary Unemployment : This is a situation where a person is without a job because they are unwilling to work due to his/her non requirement of job due to income from property or any other source.

2. Frictional Unemployment :The movement of labour from one industry to another and from one place to another takes time. Unemployment during this time is called frictional unemployment.

3. Casual Unemployment: In certain industries such as catering, construction, agriculture, workers are employed on a daily basis. These are known as casual workers & the employment is known as casual unemployment. Casual unemployment arises when these casual workers are without work.

4. Seasonal Unemployment: Certain industries do not run the whole year round. They are seasonal and run only during the peak season. For e.g agriculture, agriculture based industry etc. Thus the worker engaged in these industries are employed only during the productive season otherwise they are unemployed.

5. Structural Unemployment: When demand falls, the industries decrease the production. As a result some workers may be relieved of their job. Such unemployment is known as structural unemployment.

6. Technological Unemployment: When the introduction of new technology displaces some of the workers, the unemployment is known as technological unemployment.

7. Cyclical Unemployment :Cyclical unemployment is caused by the operation of trade cycle in the economy.

8. Disguised Unemployment: When more people are engaged in a particular job than actually required it is known as Disguised Unemployment.

9. Chronic Unemployment: When problem of unemployment becomes a long term feature of the economy. it is known as chronic unemployment.

10. Educated Unemployment: It is a situation where the educated mass is unemployed. It is of two types:
  1. General educated Unemployment
  2. Technically educated Unemployment

Causes of Unemployment in India
The causes of Unemployment in India are as follows:
  1. Poverty
  2. Rapid Growth of Population
  3. Slow Rate of Development
  4. Backward Agriculture
  5. Lack of Employment Policy
  6. Rationalisation
  7. Defective Education System \

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