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Unemployment: Types of Unemployment

Unemployment simply means a situation when able and willing people are not getting jobs as per their own capabilities. You’re considered to be unemployed when you can work, and you want to work, but you can’t find a suitable job. The term unemployment quantifies or measures a group of unemployed people.



This type of unemployment is associated with economic structure of the country that is productive capacity is inadequate to create a sufficient number of jobs. Rapidly growing population causes this. This type of unemployment is of long run nature. Indian unemployment is basically related to this category of unemployment.


Those laborers are under-employed who obtain work but their efficiency and capability are not utilized at their optimum and as a result they contribute in the production up to a limited level. An A country having this type of unemployment fails to exploit the efficiencies of its laborers.


When the laborers live without any work and they don’t find any work to do, they come under the category of open unemployment. Educated unemployed and unskilled labor unemployment are included in open unemployment. The migration from rural to urban areas in search of work is very often found in India which is an example of open unemployment.


If a person does not contribute anything in the production process or in other words, if he can be removed from the work without adversely, he will be treated as disguisedly unemployed. The marginal productivity of such unemployed person is zero. Agriculture sector of underdeveloped/ developing economies possesses this type of unemployment at a large scale.


The unemployment generated due to change in market conditions (change in demand and supply conditions) is called frictional unemployment. Agriculture is the main occupation in India. The supply conditions still depend upon weather’s mood and similarly demand conditions availability of resources. Any change arising either of any or both creates a diversion from the equilibrium which results in frictional unemployment.


It appears due to a change in demand based on seasonal variations. Laborers do not get work round the year They get employed in the peak season of agricultural activities and become unemployed when these activities are over. Indian agriculture ensures employment for only 7-8 months and laborers remain unemployed in the remaining period. This temporary type of employment gives birth to seasonal unemployment.

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Unemployment: Types of Unemployment FAQs

Q. Who is considered as unemployed?

Ans. A person who is not employed and is not willing to be employed or is not interested in working in any economic activity.

Q. What is the unemployment rate in India?

Ans. 7.5% as on 22 Mar 2022 as per CMIE

Q. How is unemployment a problem?

Ans. The problem of unemployment gives rise to the problem of poverty. The government suffers extra borrowing burden because unemployment causes a decrease in the production and less consumption of goods and services by the people.

Q. What type of unemployment is majorly seen in the agricultural sector of India?

Ans. Disguised Unemployment

Q. What is Disguised unemployment?

Ans. too many people are engaged in doing a particular task even if not required.

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