What is unemployment..?

• Unemployment or joblessness is a
situation in which able-bodied people
who are looking for a job cannot find a
job.
 Unemployment
Unemployment is also defined as involuntary
idleness of a person willing to work at the
prevailing rate of pay but unable to find it.
voluntary unemployment may be defined as
the unemployment which results from
withdrawal of some persons from employment
for diverse reasons such as
1)Absence of need to earn, when one has
already made fortune or when one inherits
large amount of wealth or property,
2)Social custom of certain groups
discourages or forbids engagement of certain
members in productive work,
3) Lethargy.
 Types of unemployment
1.Frictional unemployment
Lack of mobility on the part of labour puts them out
of work for a temporary period.lack of adjustment
between demand and supply of labour causes this
type of unemployment.
2.Structural unemployment
The word structural implies that the economic
changes are massive extensive and deep-seated
amounting to transformation of an economic
structure.
3.Cyclical or keynesian unemployment
This occurs due to cyclical fluctuations of the
economy and during the downswing of the business
cycle. The income and output fall leading to wide
spread of unemployment.
4.Seasonal unemployment
It is a case of people not employed throughout the
year. Agriculture is a live example of seasonal nature
of production.
5.Technological unemployment
Techniques of production undergo changes.The
introduction of which displaces labour, resulting in
unemployment.
• Frictional Unemployment
• Frictional unemployment arises when a person is
in between jobs. After a person leaves a company,
it naturally takes time to find another job, making
this type of unemployment short-lived. It is also
the least problematic from an economic
standpoint. Frictional unemployment is a natural
result of the fact that market processes take time
and information can be costly. Searching for a new
job, recruiting new workers, and matching the
right workers to the right jobs all take time and
effort to do, resulting in frictional unemployment.
• Institutional Unemployment
• Institutional unemployment is unemployment
that results from long term or permanent
institutional factors and incentives in the
economy. Government polices such as high
minimum wage floors, generous social benefits
programs, and restricive occupational licensing
laws; labor market phenomena such as
efficiency wages and discriminatory hiring; and
labor market institutions such as high rates of
unionization can all contribute to institutional
unemployment.
• Cyclical Unemployment
• Cyclical unemployment is the variation in the
number of unemployed workers over the course
of economic upturns and downturns.
Unemployment rises during recessionaryperiods
and declines during periods of economic growth.
Preventing and alleviating cyclical unemployment
during recessions is a major concern behind the
study of economics and the purpose of the
various policy tools that governments employ on
the downside of business cycles to stimulate the
economy.
• Structural Unemployment
• Structural unemployment comes about through
technological change in the structure of the economy
in which labor markets operate. Technological change
such as automation of manufacturing or the
replacement of horse-drawn transport by
automobiles, lead to unemployment among workers
displaced from jobs that are no longer needed.
Retraining these workers can be difficult, costly, and
time consuming, and displaced workers often end up
either unemployed for extended periods or leaving
the labor force entirely.
 Causes for unemployment
• There are seven causes
of unemployment. Four causes
create frictional unemployment. This type of
unemployment is when employees leave their
job to find a better one. Two causes
create structural unemployment. That is
when workers' skills or income requirements
no longer match the jobs available. The
seventh cause leads to cyclical
unemployment.
• Frictional and structural unemployment
occur even in a healthy economy.
The natural rate of unemployment is
between 4.5 percent and 5.0 percent,
according to the Federal Reserve.
The Bureau of Labor Statistics defines
unemployed people as those who are
jobless and have actively looked for work in
the past four weeks. If they don't keep
looking, the BLS doesn't count them in
the labor force.
Causes of unemployment in India

1.Jobless growth
2.Increase in labour force
3.Inappropriate technology
4.inappropriate educational system
 What is unemployment rate:-
• The unemployment rate is a measure of the
prevalence of unemployment and it is calculated
as a percentage by dividing the number of
unemployed individuals by all individuals
currently in the labor force.
• During periods of recession, an economy usually
experiences a relatively high unemployment
rate.Millions of people globally or 6% of the
world's workforce were without a job in 2012.
Steps to reduce unemployment
Reconstruction of Agriculture
 Rapid Industrialization
Population Control
Reorientation of education system
Encouragement of Small Enterprises
 Rural Development Schemes
Guiding centers and More Employment
Exchanges
• Government Policies to Reduce
Unemployment ' National Rural
Employment Program V Started as a part of
Sixed Plan and remained continued under
the Seventh Five-year Plan. V Creates
employment opportunities of the order of
300 million to 400 million man-days every
year. V Amis at providing employment in the
lean agricultural season.
Unemployment in India statistics has
traditionally been collected, compiled
and disseminated once every five years
by the Ministry of Labour and
Employment (MoLE), primarily from
sample studies conducted by the National
Sample Survey Office.
According to a leaked version National
Sample Survey Office (NSSO) report, the
unemployment rate was at an all-time high of
6.1 percent in 2017-18, the highest in 45
years. The report also says that male youth
had an unemployment rate of 17.4 percent
and 18.7 percent in rural and urban areas,
while women youth had rates of 13.6 percent
and 27.2 percent respectively in 2017-18