Question

Consider the following statements about unemployment:

Which of the above statement(s) is/are correct?

• A. Only 1
• B. Only 2
• C. Both 1 & 2
• D. None of the Above

Answer 1

The correct option is A Only 1

Frictional unemployment is the time period between jobs when a worker is searching for, or transitioning from one job to another. It is sometimes called search unemployment and can be voluntarily based on the circumstances of the unemployed individual. Structural unemployment occurs when a labour market is unable to provide jobs for everyone who wants one because there is a mismatch between the skills of workers and skills needed for jobs.
Disguised Unemployment: A disguisedly unemployed person is the one who seems to be employed but actually he is not. His contribution to the total output is zero or negligible. When more people are engaged in a job than actually required, a state of disguised unemployment is created. It is mostly seen in rural areas.
Under-employment: It is a situation under which employed people are contributing to production less than they are capable of. It can be in terms of time (visible under-employment) or type of work (invisible under-employment). Part-time workers come under this category