UNEMPLOYMENT

- An economic condition marked by the fact that individual actively seeking jobs remain unemployed. Unemployment is expressed as a percentage of the available workforce.  The level of unemployment varies with economic conditions and other circumstances.

- In India, a person working 8 hours a day for 273 days of the year is regarded as employed on a standard person year basis.

Types of Unemployment

         Types of unemployment are as follows 

Structural Unemployment

This type of unemployment is associated with economic structure of the country,  i.e. productive capacity is inadequate to create a sufficient number of jobs.

Under Employment

Those labourers are underemployed who obtain work, but their efficiency and capability are not utilised at their optimum and as a result they contribute in the production up to a limited level.

Open Unemployment

When the labourers live without any work and they don't find any work to do, they come under the category of open unemployment. The migration from rural to urban area in search of work is very often found in India, which is an example of open unemployment.

Disguised Unemployment

If a person does not contribute anything in the production process or in other words, if he can be removed from the work without affecting the productivity adversely, he will be treated as disguised unemployed.

Frictional Unemployment

Frictional Unemployment is the time period between jobs when a worker is searching for or transitioning from one job to another.

Seasonal Unemployment

It appears due to a change in demand based on seasonal variations. Labourers do not get work round the year.

Classical Unemployment

This type of unemployment problem arises when the wages rise above the equilibrium full employment level.

Cyclical Unemployment

The demand for labour increases with the economy in the boom phase. Again, when the economy passes through recession, demand for labour contracts and the surplus is released as the unemployed labour force.