In this article, we will discuss the types of unemployment in a simple and easy way, and try to understand its various important aspects;

So to understand well, definitely read this article till the end, as well as you will get the link of other articles related to unemployment below, ๐Ÿ’ก Social and Politics

types of unemployment
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| Unemployment

Unemployment is not the problem of any particular country, but it is the problem of all the nations. This is a universal problem. At all times, a large number of unskilled workers as well as skilled and specially trained workers are unemployed in every country.

Such workers are ready to work at the prevailing wage rates in the country, but are unemployed due to lack of work. Unemployment in large numbers is a sign of bad luck, an indicator of social disease.

There are two components of population in any country โ€“ (1) labor force and (2) non labor force .

(1) Labor force – All those persons, who are engaged in any work from which money is earned.

The thing to remember here is that sometimes a person wants to earn money and he also looks for work but he does not get work, similar people are kept in the category of unemployed.

(2) Non-labor force โ€“ All those people who are not engaged in any money earning work nor are they looking for any such work, then such persons are not said to be unemployed; Such as children, old people, adolescents and girls.

Overall an unemployed person is one who wants to earn money and is also looking for employment but unable to get employment, hence it is called involuntary unemployment.

On the other hand, such a person who does not want to work himself or even if he wants to do it because of less salary, then such situation is called voluntary unemployment because work is available but due to some reason the person himself doesn’t want to.

That is why it is to be remembered here that involuntary unemployment is considered as unemployment and this involuntary unemployment is further divided into cyclical, seasonal, structural and disguised unemployment. Let us understand this;

| Types of unemployment

Seasonal unemployment

Seasonal unemployment means non-availability of work in certain months. In other words, there are some jobs that generate a lot of employment in certain months, but after the work is over, the same situation comes again in other months of the year.

Seasonal unemployment is seen in the agricultural sector and some specialized manufacturing units โ€“ sugar and ice factories. The nature of work in the agricultural sector, sugar and ice factories is such that the workers have to remain idle for 4-6 months in a year.   

cyclical unemployment

Cyclical unemployment is found in the areas of trade and commerce. When there is ups and downs in business, there is a cyclone of unemployment. When there is a recession, unemployment increases and when there is a boom, unemployment decreases. Take for example the 2008 economic recession.

There are many theories related to the origin of these cyclical conditions of business โ€“ the theory of climate, theory of more savings or less consumption, theory of money, psychological theory etc. Sometimes one of them becomes the main.

Structural unemployment

Structural unemployment is basically related to the economic structure. When there is a change in the economic structure due to defects or development, then unemployment is seen.

It is seen that while a particular industry develops in a particular way, then another industry declines. The workers of the depreciating industry become useless โ€“ just as the weavers were wiped out with the introduction of machines in the textile industry in India. Similarly, due to the advent of computers, many workers had to lose their jobs.

Struggling unemployment 

When a person leaves one job in search of another job, during which he remains unemployed till new employment is found, it is called Struggling unemployment.

In other words, when the production conditions and machines change in any industry, the old workers become useless for some time. But soon after getting training in new techniques of production, they find new employment for themselves.

Natural rate of unemployment โ€“ โ€‹โ€‹The sum of Struggling and structural unemployment is called natural rate of unemployment.

Hidden unemployment

Such unemployment, which is not visible directly, is called hidden unemployment. It is also called disguised unemployment. It occurs when a person does not contribute to the production, while apparently working.

In other words, under hidden unemployment, more people are seen performing the same type of work than necessary. This type of situation can be seen in rural agro-economy.

In the village, many people work on that part of the land in which only one person can do it. Due to which there is no increase in their production. If other than one is removed from it, then there will be no reduction in agricultural production.

Semi unemployment

When a person starts working for less than the prevailing real wage, then such a condition is called under-employment or semi-employment.

In other words, a person who is engaged in some economic activity but is not getting salary or work according to his desire and skill, then such persons are called underemployed.

In this situation, the person accepts the work on the principle of ‘เคฌเฅˆเค เฅ‡ เคธเฅ‡ เคฌเฅ‡เค—เคพเคฐ เคญเคฒเฅ€’. Like seeing a person with a postgraduate pass and PhD degree working in private schools on two or three thousand monthly.

Educated unemployment

Educated unemployment is the main problem of India’s economic problems. This situation hinders our economic development. Unemployment among the educated class is a different types of unemployment.

Like a person does graduation, post graduation after years, but when he comes to the market after finishing his studies and taking degree with him, he does not get any work and he becomes unemployed, then this situation is called educated unemployment. .

Hope you understand the Types of unemployment, Also read other articles on the same subject, so that you could understand unemployment well.

There is a separate article on educated unemployment , you can read it by clicking ๏ธ here.

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