Unemployment

Frictional Unemployment

A temporary phenomenon which arises when workers are temporarily out of work while changing jobs or are suspended due to strikes or lockouts.

Casual Unemployment

In industries/services such as construction, catering, etc., also in agriculture, where workers are in employment on a day-to-day basis, there are chances of casual unemployment occurring due to short-term contracts which are terminable anytime.

Seasonal Unemployment

Industries or occupations such as agriculture, catering, holiday resorts, where production activities are seasonal in nature offer employment only for a certain period of time in a year. People engaged in such type of work may remain unemployed during season, which is known as seasonal unemployment.

Structural Unemployment

Unemployment which arises due to change in the pattern of demand leading to changes in the structure of production in the economy is termed as the structural unemployment.

Technological Unemployment

Due to introduction of new machinery, improvements in methods of production, labour-saving devices, etc., some workers tend to be replaced by machines. is unemployment is known as technological unemployment. For example, use of synthetic rubber is bound to reduce demand for natural rubber leading to unemployment in rubber plantation.

Cyclical Unemployment

Associated with cyclical fluctuations of economic activity due to trade cycle; Mostly found in the capitalist countries like USA etc.

Chronic Unemployment

When unemployment tends to a long-time feature of a country, it is called chronic unemployment. Underdeveloped countries suffer from chronic unemployment on account of the vicious cycle of poverty, resource scarcity, high population growth, low capital formation, etc.

Disguised Unemployment

Refers to a situation where people may be working and apparently employed, yet their contribution to output may be zero or negative. Found mainly in agriculture, public sector enterprises, etc.

Labour force participation rate (LFPR)

LFPR is deed as the number of persons/person-days in the labour force per 1000 persons/person-days.

Worker Population Ratio (WPR)

WPR deed as the number of persons/person-days employed per 1000 persons/person-days.

Proportion Unemployed (PU)

It is defined as the number of persons/person-days unemployed per 1000 persons/ person-days.

Unemployment Rate (UR)

UR is deed as the number of persons/person-days unemployed per 1000 persons/ person-days in the labour force (which includes both the employed and unemployed).

Written by princy

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