unemployment detail course to study in economics

Unemployment course for economics

1. Unemployment

2. Table Contents Definition Introduction Understanding Unemployment Categories of Unemployment Types of Unemployment Causes of Unemployment Strategies To Reduce Unemployment Conclusion 2

3. Definition The term unemployment refers to a situation where a person actively searches for employment but is unable to find work. 3

4. Introduction Unemployment is considered to be a key measure of the health of the economy. The most frequently used measure of unemployment is the unemployment rate. It's calculated by dividing the number of unemployed people by the number of people in the labor force. Many governments offer unemployment insurance to certain unemployed individuals who meet eligibility requirements. 4

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6. Understanding Unemployment Unemployment is a key economic indicator because it signals the ability (or inability) of workers to obtain gainful work and contribute to the productive output of the economy. More unemployed workers mean less total economic production. ●●● 6

7. Understanding Unemployment Sign of Economic Distress Unemployed workers must maintain at least subsistence consumption during their period of unemployment. This means that an economy with high unemployment has lower output without a proportional decline in the need for basic consumption. ●●● 7

8. Understanding Unemployment Sign of Overheating Economy A low unemployment rate, on the other hand, means that the economy is more likely to be producing near its full capacity, maximizing output, driving wage growth, and raising living standards over time. 8

9. Categories of Unemployment While the definition of unemployment is clear, economists divide unemployment into many different categories. However, extremely low unemployment can also be a cautionary sign of an overheating economy, inflationary pressures, and tight conditions for businesses in need of additional workers. ●●● 9

10. Categories of Unemployment The two broadest categories are voluntary and involuntary unemployment. When unemployment is voluntary, it means that a person left their job willingly in search of other employment. When it is involuntary, it means that a person was fired or laid off and must now look for another job. 10

11. Types of Unemployment Frictional Unemployment This type of unemployment is usually short-lived. It is also the least problematic, from an economic standpoint. It occurs when people voluntarily change jobs. After a person leaves a company, it naturally takes time to find another job. Similarly, graduates just starting to look for jobs to enter the workforce add to frictional unemployment. ●●● 11

12. Types of Unemployment Cyclical Unemployment Cyclical unemployment is the variation in the number of unemployed workers over the course of economic upturns and downturns, such as those related to changes in oil prices. Unemployment rises during recessionary periods and declines during periods of economic growth. ●●● 12

13. Types of Unemployment Structural Unemployment Structural unemployment comes about through a technological change in the structure of the economy in which labor markets operate. Technological changes can lead to unemployment among workers displaced from jobs that are no longer needed. ●●● 13

14. Types of Unemployment Institutional Unemployment Institutional unemployment results from long term or permanent institutional factors and incentives in the economy. Government policies, such as high minimum wage floors, generous social benefits programs, and restrictive occupational licensing laws . 14

15. Causes of Unemployment 15

16. Strategies To Reduce Unemployment Use of Labour-intensive Technology: Both the organised and un-organised sectors must adopt labour-intensive technology if sufficient employment opportunities are to be generated in both the rural and urban sectors of the economy. ●●● 16

17. Strategies To Reduce Unemployment Accelerating Investment in Agriculture: Second, an important reason for slow growth of employment in agriculture and rural sector has also been a shortfall in investment or capital formation in agriculture. Both the public and private sector investment in agriculture has declined since the early nineties. ●●● 17

18. Strategies To Reduce Unemployment Diversification of Agriculture: Besides there is urgent need for diversification of agriculture. For example, there is an urgent need for a relative shift from growing of crops to horticulture, vegetable production, floriculture, animal husbandry, fisheries etc. which are more labour absorbing and higher income-yielding. ●●● 18

19. Strategies To Reduce Unemployment Labour-Intensive Industrial Growth: For solving unemployment problem in the urban areas, the organised industrial sector must also absorb a sufficient number of workers. The failure of the organised industrial sector to generate enough employment opportunities is due to the use of capital-intensive technologies imported from abroad. ●●● 19

20. Strategies To Reduce Unemployment Services and Employment Growth: The growth of services in India has a large employment potential. In 1993-94 to 1999-2000, next to the construction sector the employment elasticity of output growth in services was higher and was estimated at about 0.50. ●●● 20

21. Strategies To Reduce Unemployment Education, Health and Employment Generation: Lastly, the expansion of education and health care not only promotes accumulation of human capital and thereby contributes to growth of output, it will also generate a good deal of employment opportunities. 21

22. Conclusion U nemployment, the condition of one who is capable of working, actively seeking work, but unable to find any work. It is important to note that to be considered unemployed a person must be an active member of the labour force and in search of remunerative work. 22

23. Thanks