Question

what do you mean by unemployment? explain with examples​

Answer 1

$\bold { \red{UNEMPLOYMENT: }}$

• "The term unemployment refers to a situation when a person who is actively searching for employment is unable to find work".
• Unemployment is considered to be a key measure of the health of the economy.
• The most frequent measure of unemployment is the unemployment rate, which is the number of unemployed people divided by the number of people in the labor force.

KEY TAKEAWAYS :

• Unemployment occurs when workers who want to work are unable to find jobs, which lowers economic output.
• High rates of unemployment are a signal of economic distress while extremely low rates of unemployment may signal an overheated economy.
• Unemployment can be classified as frictional, cyclical, structural, or institutional.

EXAMPLES OF UNEMPLOYMENT :

1. The worker whose take-home pay is less than his or her cost of living.
2. A stay-at-home mom, a college student, or a “discouraged worker” (someone who has stopped looking for work because they believe no work is available).
3. In the farming industry, much of the work is becoming mechanized, which means that fewer farmers are needed and many are let go. When these farmers go to cities to find work, they may find no other similar jobs in which to apply their skills.