Diffrence between underemployment and disguised unemployment
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Unemployment may be of different types.
Structural
Seasonal
Frictional
Disguised
Involuntary
Structural unemployment means unemployment arising out of technological change. A familiar example is arrival of auto rickshaw in smaller towns in India. Earlier cycle rickshaws were a familiar sights in these localities for local transport. However, their number is greatly reduced now-a-days. So also bullock carts in the country side were replaced by motor transport, handloom cloths being replaced by mill clothes during British time. The people engaged in these professions became unemployed or migrated to other professions due to technological change.
Seasonal unemployment is people remaining out of work during a season. This happens to agricultural labourers after harvesting season, if single crop is grown in an area. Such people usually migrate to urban areas in search of emplyment. They mostly live in the foot path or slum areas.
Frictional unemployment arises during transitional period lost in search of a job after leaving an earlier job. This also happens after completion of education by a student and getting a placement offer but yet to join an assignment.
Disguised unemployment is working of more number of people, where less is required leading to no addition to output. This happens in villages where more people work in farm land due to lack of other jobs. This happens in labour intensive industries and railways. After introduction of computers many people became redundant in many banks and offices. Although they are in jobs there is no net addition to output.
Involuntary unemployment arises when a person is willing to work at the prevailing wage but not employed due to competition. This happens in labour markets where many people assemble in the morning, but some return without getting a job due to lack of opportunity.
Underemployment relates to part time workers who donot get full time job inspite of having the required eligibility. Housewives are mostly underemployed in our country because of lack of opportunity even though some of them are adequately qualified.
As a policy measure, govt can create employment bureaus where people can register themselves for employment particularly in the unorganised sector in the lines of employment exchanges. Now-a-days mostly they go to labour contractors where much exploitation occurs.
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