UNEMPLOYMENT

 UNEMPLOYMENT

According to National Sample Survey Organisation (NSSO), a person who, owing to lack of work, had not worked, but either sought work through employment exchanges, intermediaries friends or relatives or by making applications to prospective employers or expressed his willingness or availability for work under the prevailing conditions of work and remuneration, is considered as those seeking or available for work(or unemployed).

Types of Unemployment  

Generally, unemployment can be classified into two types, which are as follows

1.  Voluntary Unemployment

 This type of unemployment is on account of persons not interested to take the employment i.e. jobs are available, but the persons are not interested in being employed.

2. InVoluntary Unemployment

 It refers to a situation in which the persons are interested to work, but the jobs are not available.  Under this, there are various categories of unemployment.

• Structural Unemployment  It refers to a mismatch of job vacancies with the supply of labour available, caused by shifts in the structure of the economy.

• Disguised Unemployment   This is a situation in which more people are available for work than shown in the unemployment statistics.

• Open Unemployment    It is a condition in which people have no work to do.  They are able to work and are also willing to work, but there is no work for them.

• Seasonal Unemployment  It is on account of the seasonal nature of productive activities i.e. some productive activities are carried out only for a certain duration of a year.

• Cyclical Unemployment  This type of unemployment is due to the recession in the economy.  This type of unemployment is prevalent in developed countries.  This is also known as Keynesian Unemployment. 

• Frictional Unemployment  It occurs when a worker is shifting from one job to the other.  It is a temporary phenomenon.