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Answer» The following are the types of unemployment. Types of unemployment: 1. Cyclical Unemployment 2. Frictional Unemployment 3. Technical Unemployment 4. Disguised Unemployment 5. Seasonal Unemployment 6. Educated Unemployment 7. Structural Unemployment 1. Cyclical Unemployment: - This unemployment exists during the downturn phase of trade cycle in the economy.
- In a business cycle during the period of recession and depression, income and output fall leading to widespread unemployment
- It is caused by deficiency of effective demand.
- Cyclical unemployment can be cured by public investment or expansionary monetary policy.
2. Seasonal Unemployment: - This type of unemployment occurs during certain seasons of the year.
- In agriculture and agro based industries like sugar, production activities are carried out only in some seasons.
- These industries offer employment only during that season in a year. Therefore people may remain unemployed during the off season.
- Seasonal unemployment happens from demand side also; for example ice cream industry, holiday resorts etc.
3. Frictional Unemployment (Temporary Unemployment): - Frictional unemployment arises due to imbalance between supply of labour and demand for labour.
- This is because of immobility of labour, lack of necessary skills, break down of machinery.
- shortage of raw materials etc.
- The persons who lose jobs and in search of jobs are also included under frictional unemployment.
4. Educated Unemployment: - Sometimes educated people are underemployed or unemployed when qualification does not match the job.
- Faulty education system, lack of employable skills, mass student turnout and preference for white collar jobs are highly responsible for educated unemployment in India..
5. Technical Unemployment: - Modem technology being capital intensive requires less labourers and contributes to technological unemployment.
- Now a days, invention and innovations lead to the adoption of new techniques there by the existing workers are retrenched.
- Labour saving devices are responsible for technological unemployment.
6. Structural Unemployment: - Structural unemployment is due to drastic change in the structure of the society.
- Lack of demand for the product or shift in demand to other products cause this type of unemployment.
- For example rise in demand for mobile phones has adversely affected the demand for cameras, tape recorders etc.
- So this kind of unemployment results from massive and deep rooted changes in economic structure.
7. Disguised Unemployment: - Disguised unemployment occurs when more people are than what is actually required.
- Even if some workers are withdrawn, production does not suffer.
- This type of unemployment is found in agriculture.
- A person is said to be disguisedly by unemployed if his contribution to output is less than what he can produce by working for normal hours per day.
- In this situation, marginal productivity of labour is zero or less or negative.
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