What is unemployment
Unemployment is the system of the
economy. Due to which skilled and unskilled person does not get employment even
after searching for employment. When a person is not able to get employment
even according to his qualification and achievement. So it is called
unemployment. Any unemployment can be gauged from the health of the economy. If
the health of the economy is very good, then the possibility and availability
of employment increases. But the condition of the economy is bad, so the
unemployment rate keeps on increasing.
unemployment
Types of Unemployment
1. Open unemployment
Open unemployment is types of
unemployment. In which people do not get employment despite their willingness
to work and their ability. There is lack of opportunity in unemployment. People
want to work, but people do not get the opportunity to work. Educated
unemployed, ordinary unemployed, labour skilled unemployed are included under
this unemployment. This open unemployment reflects the lack of opportunity in
the organization and the country. Due to this unemployment, there is a huge
loss to the economy, in which a person is not able to get employment despite
being educated and skilled.
2. Disguised unemployment
Disguised unemployment is the
unemployment of the economy. Which is not directly visible in the economy. That
is, this unemployment cannot be directly estimated. In this unemployment, a
large part of the labour force appears unemployed. In this the person works
compulsorily. The person works according to his work force. But in this
unemployment the marginal productivity is zero. In this unemployment there is
no significant effect on total output. Because in this unemployment the total
productivity becomes negligible. More and more laborers work for less and less
work. Due to which this unemployment acts as a loss of labour force in the
country's economy. It is believed to represent the hidden unemployment of the
economy, as there is not directly visible unemployment.
This type of unemployment is
mostly seen in the agriculture sector. For example, a farmer has 10 acres of
land, in which the farmer used to work in 10 acres. But with the passage of
time the children of the farmer also work in the same field. But gradually with
the passage of time the children of the farmer also started working in the same
field. That is, three generations are working together, in which the farmer's
son and the farmer's son all work together. But productivity remains the same.
Due to which marginal productivity becomes zero. Because earlier only a farmer
could work in that 10 acres with his own labour force. But with the passage of
time more than 1 person is working in that 10 acres. Means more and more
laborers are working on less labour. Due to which there is no difference in
productivity. But the demand for labour force productivity becomes very high,
so that marginal productivity is assumed to be zero.
3. Structural unemployment
When there is expansion in
industries, industrialization, service sector, government and private sector as
a result of economic, social and technological development in the economy of a
country. Hence it leads to mismatch of skill development, jobs available in the
market and education among the labour force. The unemployment resulting from
this structural change is called structural employment. This unemployment is
long term. Because skill development has an important contribution in this. For
example, if there are too many unskilled workers in the labour force. Therefore
professional and skilled employment cannot be provided to those workers. Due to
which structural unemployment arises.
4. Cyclical unemployment
Unemployment increases when the
economy is in recession. And when unemployment decreases due to economic growth
in the economy. So it is called cyclical unemployment. Such unemployment is
observed from time to time in the entire economy or in a particular sector in
the national and international markets. Due to which the working class has to
face more trouble. This cyclical unemployment is mostly found in capitalist
economy. When the economy moves towards development, the demand for employment
is more and more. But on the contrary, in times of recession, the same working
class does not get employment. This type of process is called cyclical
unemployment.
5. Seasonal Unemployment
Seasonal unemployment
Unemployment has a special place in the economy. Because it shows the
unemployment generated in a particular season each year. Which is harmful for
the working class. Due to seasonal unemployment, employment is not available
for some time. Due to which the worker is not able to use his labour force.
Mostly this unemployment is seen in agriculture sector. Because planting one
crop in some seasons leaves the agricultural land vacant for the rest of the
time. Due to which no crop is produced in that agricultural land. As a result
of which the working class does not get labour. Mostly this seasonal
unemployment is affected due to geographical area and climate.
6. Frictional unemployment
Frictional unemployment is that Situation
of unemployment. In which unemployment arises due to change in market
conditions. It is also known by the other name "search unemployment".
When a person is looking for another job while doing a job. So that he can get
a good pay scale, the time gap between these two is known as frictional
unemployment. This unemployment creates friction in the forces of demand and
supply. Because a person switches from one place to another in search of a new
job while doing a job. Due to which he gets transferred to the new job. Due to
which the skilled worker has to struggle to get employment according to his
skill, that is why it is called frictional unemployment.
7. Vulnerable Underemployment
Underemployment when workers do
not get work according to their skills in the market. Or workers are not able
to get full time employment according to their skills. And it is not recorded
in any organized and unorganized record. Nor is any kind of legal protection
available by the government and private companies in this employment. It only
binds the workers to work formally. Nor is there any contract and no security
in this type of employment. It is only temporary. The employment of this type
of workers is called underemployment or known as vulnerable employment.
8. Technology Unemployment
Technology is the system of the
unemployment economy. In which any new technology arrives in the market. So
because of this old skilled employment workers do not have knowledge about
technology. Due to which the skill and labour of those workers becomes zero for
new technology. It requires new skilled labour for new technology. and the lack
of new skilled workers that new technology creates unemployment. And there is
no need for new technology for old skilled workers. That is, the labor force of
the old skilled worker gets wasted. Due to which old workers are not able to
get employment. And new technology does not keep up with the demand for new
skilled workers. This type of unemployment is called technology employment.
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