Unemployment is a phenomenon that occurs when a person who is capable of working and is actively searching for the work is unable to find work.
Different types of unemployment are as follows:
- Frictional Unemployment:The minimum amount of unemployment that prevails in an economy due to workers quitting their previous jobs and are searching for the new jobs is called Frictional Unemployment
- Cyclical Unemployment:Cyclical unemployment is due to deficiency or fall in effective demand from consumers which leads to fall in production and low demand for labour.
- Voluntary unemployment:Voluntary unemployment refers to a situation where workers are either not seeking for work or are in transition from one job to another (quitting one job in search of another better job).
- Involuntary unemployment:Involuntary unemployment refers to a situation where workers are seeking work and are willing to work but are unable to get work.
- Structural unemployment:Structural unemployment refers to a situation which arises due to change in the structure of the economy. Example: An economy transforms itself from a Labour intensive economy to a Capital intensive economy.
- Seasonal unemployment:Seasonal unemployment occurs during certain seasons of the year. In some industries and occupations like agriculture, holiday resorts etc., production activities take place only in some seasons.
- Disguised unemployment:Disguised unemployment is when too many people are employed than what is required to produce efficiently. This kind of employment is not at all productive.
- Under employment:Underemployment is a situation under which People with a higher level of skills are employed in less productive jobs.