Introduction:
The condition of one who is capable of working, actively seeking work, but unable to find any work. It is important to note that to be considered unemployed a person must be an active member of the labour force and in search of remunerative work.
Definition:
“Unemployment is a situation where people of a country are willing to work, able to work but can not find jobs.”
Types of Unemployment
There are different types of unemployment. They are categorized in a number of ways, they are:
1. Frictional Unemployment
2. Structural Unemployment
3. Regional Unemployment
4. Technological Unemployment
5. Seasonal Unemployment
6. Cyclical Unemployment.
1. Frictional Unemployment: This arises from immobility in the labour force. People remain unemployed either a) they do not want to move to other parts of the country (geographically immobile) or b) do not have sufficient skills (occupationally immobile)
A) Search Unemployment: This is a form of frictional unemployment. It occurs when people do not take the first offered job to search for better paid job.
B) Casual Unemployment: This is also a form of frictional unemployment. There are certain groups of people who are out of work between periods of employment such as opera singers, actors and so on.
2. Structural Unemployment: This unemployment arises from a fundamental change in the structure of industry [such as decline of coal mine in UK]
3. Regional Unemployment: This is related to structural unemployment. It arises when the declining industry is concentrated in one area. The region dependent upon that industry may suffer heavily due to the decline in the income generated by that industry.
4. Technological Unemployment: This is also related to structural unemployment. It arises when an new technology is introduced (such as ATM and other cash & credit cards have reduced the number bank clerks).
5. Seasonal Unemployment: This occurs in the industries which experience remarkable seasonal patterns of demand. Unemployment in Maldivian tourism industry is an example for this.
6. Cyclical Unemployment: This is also referred to as demand deficiency unemployment. It arises due to inadequate demand. The aggregate expenditure is insufficient to achieve full employment and hence unemployment.
