Types of Unemployment

Types of Unemployment

1. TYPES OF UNEMPLOYMENT By Dr . P.Rathinam , Assistant Professor in Economics Govt . Arts College (Autonomous), Coimbatore .

2. UNEMPLOYMENT Meaning Unemployment may be defined as “a situation in which the person is capable of working both physically and mentally at the existing wage rate, but does not get a job to work”.

3. Unemployment in India According to the Periodic Labour Force Survey (PLFS) of the National Sample Survey Office (NSSO) The unemployment rate in the country in FY18 was at 6.1%.  The unemployment rate was 5.3 % in rural India 7.8 % in urban India,

4. Meghalaya has the least unemployment rate (1.5%) among the Indian states, while Nagaland has the highest unemployment rate (21.4 %) in 2017 -18. Youth unemployment rate was 10.42%

5. Nature of Unemployment in India In urban Educated Unemployment Technological Unemployment Frictional Unemployment Underemployment

6. In rural Disguised Unemployment Seasonal Unemployment Casual Unemployment Chronic Unemployment

7. Types of unemployment Structural Unemployment This unemployment arises due to drastic changes in the economic structure of a country . It caused by massive mismatch of skills and geographical location.

8. Example Occupational immobility. Skilled jobs may be available , but many workers may not have the relevant skills Geographical immobility. Jobs may be available in London, but, unemployed workers may not be able to move there due to difficulties in getting housing etc . Technological change. Now days robots are employed in hotels instead of server.

9. Frictional unemployment Workers who leaves their current job to look for better job than the existing one. Until they are temporarily unemployed for getting new job. It caused by shortage of job, lack of correct and timely information, Workers dissatisfaction with work conditions.

10. Example Transitioning :  Worker A is employed in a sound job but he is unhappy to work for long hour. So he quit the present job and start to find a new job. Until he is unemployed . Fresh Graduates:  Ms B graduated from college with HR specialization. But She received a job finance officer in a reputed institution. She deny the current job and to find a job that matches for her skills. Until she is unemployed.

11. Cyclical unemployment Which is related to the cyclical trends in the industry or the business cycle.  If the economy is showing signs of slowdown, the cyclical unemployment will be the high. 

12. Example The loss of construction jobs during 2007-2008 financial crisis in US. As the housing crisis, home builders stopped constructing new homes. As many as two million construction workers lost their jobs.

13. Technological Unemployment Due to the introduction of new technology, some people lose their jobs. Skills required to meet the new technology. Existing skill-sets of the employed workers are unable to match their skills with new machines. So they become unemployed.

14. Example

15. Disguised Unemployment More people are work than what they actually required. If some worker s are withdrawn from jobs, it does not affect the production. So some workers have zero marginal productivity. Their removal will not affect the total output.

16. Example

17. Seasonal unemployment Number of people are unable to find jobs during off-season. Workers got jobs only for the harvest season in agricultural sector and remain unemployed in the rest of the year.

18. Example

19. Casual Unemployment Workers are employed on a day to day basis. It may occur due to short term contracts, demand of the products, season, etc.

20. Example Construction sector, harvesting season in agriculture, small scale sectors, etc.

21. Industrial Unemployment Persons who are willing and able to work in factories in urban areas but cannot find work fall in this category. Due to skill, knowledge, working environment, corporate culture etc are the reason for industrial unemployment.

22. Example

23. Underemployment People who work less than their capacity. The most common type of underemployed workers are Skilled workers in low-paying jobs Skilled workers in low-skill jobs Part-time workers preferring full-time hours

24. Example

25. Thank you