different types of unemployment found in India .
Answers
Answer:
Structural, cyclical and frictional are three types of unemployment
Answer:
Explanation:
The various types of unemployment may be classified as follows:
1. Voluntary Unemployment:
In every society, there are some people who are unwilling to work at the prevailing wage rate, and there are some who are lucky enough to get a continuous flow of unearned income from their unemployed status. Jobs are available for them but they do not want to accept them. Voluntary unemployment may be a national waste of human energy, but it is not a serious economic problem with any social repercussions. Voluntary unemployment is consistent with the state of full employment.
2. Frictional Unemployment:
Frictional unemployment is a temporary phenomenon.
It may take place in various ways. When some workers are temporarily out of work while changing jobs, it is called “frictional unemployment.” Similarly, strikes and lockouts may result in the suspension of work, and there may exist some frictional unemployment for the time being. To some extent, frictional unemployment is also caused by the imperfect mobility of labour. Factors inhibiting the geographical or occupational movement of unemployed workers into vacant jobs, thus, cause frictional unemployment.
3. Casual Unemployment:
In industries such as building construction, catering or agriculture, where workers are employed on a day- to-day basis, there are chances of casual unemployment occurring due to short-term contracts, which are terminable any time. Thus, when a worker’s contract ends after the completion of work, he has to find a job elsewhere, which he is likely to get depending on circumstances or he may get a fresh contract with the same firm when some new work is started.Similarly, there may be causal employment of extra workers in some places like dockyards during the rush of loading or unloading. Once the work is over, these extra workers become unemployed.
4. Seasonal Unemployment:
There are some industries and occupations such as agriculture, the catering trade in holiday resorts, some agro-based industrial activities, like sugar mills and rice mills, etc., in which production activities are seasonal in nature. So, they offer employment for only a certain period of time in a year. For instance, work in sugar mills lasts for about six months. Rice mills work for only a few weeks. Agriculture offers employment at the time of ploughing and as the unemployment of people engaged in such types of work or activities which cater to the seasonal demand. We may call it “seasonal unemployment.” Even self-employed people may be seasonally unemployed, off the season.
5. Structural Unemployment:
Due to structural changes in the economy, structural unemployment may take place. Structural unemployment is caused by a decline in demand for production in a particular industry, and consequent disinvestment and reduction in its manpower requirements. In fact, structural unemployment is a natural concomitant of economic progress and innovation in a complex industrial economy of modem times. For instance, with the economic expansion of a town, tongas may tend to go out of date with the introduction of autorickshaws. Consequently, tonga operators may become unemployed.
6. Technological Unemployment:
A kind of structural unemployment may take place in an economy as a result of technological improvement. Such unemployment may be described as technological unemployment. Due to the introduction of new machinery, improvement in methods of production, labour-saving devices etc., some workers tend to be replaced by machines. Their unemployment is termed as “technological unemployment.”
7. Cyclical Unemployment:
Capitalist-biased, advanced countries are subject to trade cycles. Trade cycles — especially recessionary and depressionary phases — cause cyclical unemployment in these countries. During the contraction phase of a trade cycle in an economy, aggregate demand falls and this leads to disinvestment, decline in production, and unemployment. Lerner calls it “deflationary unemployment.” Keynes emphasised that depressionary unemployment is caused by the insufficiency of effective demand.
8. Chronic Unemployment:
When unemployment tends to be a long-term feature of a country it is called “chronic unemployment.” Underdeveloped countries suffer from chronic unemployment on account of the vicious circle of poverty. Lack of developed resources and their underutilisation, high population growth, backward, even primitive state of technology, low capital formation, etc. are the major causes of chronic unemployment in underdeveloped economies.
9. Disguised Unemployment:
Unemployment may be classified into: (i) open, and (ii) disguised. So far, the kinds of unemployment discussed are all related to open employment.The term “disguised unemployment” commonly refers to a situation of employment with surplus manpower, in which some workers have zero marginal productivity so that their removal will not affect the volume of total output.