Unemployment

In common parlance anybody who is not gainfully employed in any productive activity is called unemployed. However, it can be of two kinds :
(i) Voluntary Unemployment

Unemployment

(ii) Involuntary Unemployment

Here we are concerned with the second category of unemployed persons.

Hence, unemployment can be defined as a situation when persons able and willing to work are seeking jobs at the prevailing wage level but they are unable to get the same.

Types of Unemployment :

(1) Cyclical Unemployment : It is the result of depression in an economy.

(2) Frictional Unemployment : This kind of Unemployment is temporary. It is result of a situation when new industries drive out old ones and workers change over to better jobs.

(3) Open Unemployment : It refers to those who have no work to do even though they are able and willing to do work.

(4) Seasonal Unemployment : This occurs at certain period of the work when work load is comparatively less, and hence people are rendered jobless.

(5) Educated Unemployed : This is mainly found in urban areas. Those educated persons who are unable to get work come under this category.

(6) Disguised Unemployment : It results when a person contributes to production less than what he or she is capable of, for example an engineer working as a clerk under employed.

(7) Compulsory Unemployment : It means the labour power which is ready to work on the current rate but does not get the work.