Question

Distinguish between the following.

1. Voluntary unemployment and involuntary unemployment.

2. Rural unemployment and urban unemployment.

3. Seasonal unemployment and disguised unemployment.

4. Cyclical unemployment and frictional unemployment.

Answer 1

1.

Basis of Difference	Voluntary unemployment	Involuntary unemployment
Meaning	People are able but unwilling to work.	People are able and willing to work but do not find jobs.
Type of problem	It is a psychological problem as people themselves choose to remain unemployed.	It is an economic problem which is caused due to excess supply of workers in relation to demand.
Nature	It is deliberate in nature.	It is undeliberate in nature and is also known as visible or open unemployment.

2.

Basis of Difference	Rural Unemployment	Urban Unemployment
Definition	Unemployment found in villages and rural areas is termed as rural unemployment.	Unemployment found in towns and cities is termed as urban unemployment.
Nature	It is comparatively more severe in nature.	It is relatively less severe in nature.
Causes	Main causes are high dependence on monsoon in agriculture sector, basic underdevelopment, joint family system.	Main causes are economic frictions, change in technology, unfit education systems.

3.

Basis of Difference	Seasonal Unemployment	Disguised Unemployment
Definition	Refers to when, individuals remain unemployed for some part of the year and are employed for the other parts.	Refers to when, too many people employed in an activity, such that removal of few does not affect total productivity.
Example	In agriculture sector where an individual remains unemployed during some particular time of the year, Off-seasons for tourist places.	In agriculture sector where all the family members being employed on one family land.

4.

Basis of Difference	Cyclical Unemployment	Frictional Unemployment
Definition	Refers to the unemployment caused due to trade or economic cycles such as recession and depression.	Refers to temporary unemployment caused due to economic frictions such as power failures, breakdown of machinery, search periods, etc.
Nature of impact	Has a severe impact on economic development due to recessionary trends.	Is comparatively less severe as it is temporary in nature.