Unemployment
Meaning:
Unemployment refers to a situation where people who are willing and able to work cannot
find suitable job opportunities.
A person is considered unemployed only if they are actively seeking work.
Types of Unemployment:
Type Meaning
Frictional Unemployment Short-term unemployment when people
switch jobs.
Structural Unemployment Caused by mismatch of skills or technology
changes.
Cyclical Unemployment Occurs during economic recession when
demand falls.
Seasonal Unemployment Jobs available only in certain seasons
(agriculture, tourism).
Disguised Unemployment More workers employed than necessary
(common in agriculture).
Educated Unemployment Educated people unable to find suitable
jobs.
Causes of Unemployment:
1. Population growth
2. Slow industrial growth
3. Lack of skill development
4. Technological advancement replacing labour
5. Economic recession or slowdown
Effects of Unemployment:
Economic Effects
Meaning:
Unemployment refers to a situation where people who are willing and able to work cannot
find suitable job opportunities.
A person is considered unemployed only if they are actively seeking work.
Types of Unemployment:
Type Meaning
Frictional Unemployment Short-term unemployment when people
switch jobs.
Structural Unemployment Caused by mismatch of skills or technology
changes.
Cyclical Unemployment Occurs during economic recession when
demand falls.
Seasonal Unemployment Jobs available only in certain seasons
(agriculture, tourism).
Disguised Unemployment More workers employed than necessary
(common in agriculture).
Educated Unemployment Educated people unable to find suitable
jobs.
Causes of Unemployment:
1. Population growth
2. Slow industrial growth
3. Lack of skill development
4. Technological advancement replacing labour
5. Economic recession or slowdown
Effects of Unemployment:
Economic Effects
