UNEMPLOYMENT
Unemployment means the people those who are able and willing to work are unable to find the job.
Types/Causes of Unemployment
Frictional Unemployment
If the people move from one job to another, then they want to spend some time for searching and finding a new job. The unemployment between these jobs is known as frictional unemployment. It is temporary and least serious unemployment
Structural Unemployment
It is due to the structural changes of an industry. If the demand for one product decreases then the people working in that firm will loose the job.
Seasonal Unemployment
It is due to the seasonal changes of an industry, in some particular seasons demand for the certain products will be low, and then people working in that industry will loose the job. Eg: In off season many of the labours in tourism sector will loose the job.
Cyclical Unemployment
During the depression period, demand for all the goods and services will below, then people working in all the industries will loose the job. It is the most serious type of unemployment. It is also known as demand deficient unemployment.
Disguised Unemployment
It is happening the agriculture sector, when the number of labour employed is more than the required amount, then the excess labours productivity will be zero.
Regional Unemployment
It is due to the declining of the major industry in a one particular region, and then people working in that region will loose the job
Problems/Consequences of Unemployment
Ø Waste of resources
Ø Decrease in standard of living
Ø Social problems like crime suicide etc will increase
Ø Increase in government expenditure
Ø Decrease in government revenue
Ø Increase in poverty
Ø Economic growth will decrease
Ø Loss of skill of the labour force
Policies to solve Unemployment
Frictional Unemployment
It can be solved by giving information about the employment opportunities through the newspaper, radio, television etc
Structural unemployment
It can be solved by shifting labours from one industry to another
Cyclical Unemployment
It can be solved by increasing the demand for goods and services through the fiscal, monetary and exchange rate policy
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