Question

Essay type questions

Explain the different types of unemployment.

Answer 1

Unemployment can be classified into following main types.
a. Rural unemployment- Unemployment in village areas is known as rural unemployment. It can be categorized into following two main types.

i. Seasonal unemployment- It is a situation where a person willing to work is not able to find work for a certain season or period of time. Such type of unemployment can be found in agriculture sector wherein an agriculture worker may remain unemployed for some time of the year.
ii. Disguised unemployment- It is a situation where there are too many people employed in an activity, such that removal of a few does not affects the productivity. This type of unemployment is most common in agriculture sector where often the entire family is engaged in the field work. Even if some of them is removed the productivity would not be affected.

b. Urban unemployment- It refers to the unemployment found in town and cities. The following are its types.

i. Educated unemployment- It mainly arises because of the defective education provided by educational systems. The quality of education provided is not such that it is able to fulfill the requirements of the actual work, which leaves a large number of educated and capable people unemployed.
ii. Technological unemployment- It is a type unemployment which is caused by changes in the techniques of production such as use of computer, robotic technology etc. The workers that are not familiar with the new technology get displaced.
iii. Frictional unemployment- It involves a situation where people remain temporarily unemployed due to such reasons are search for a new job, strikes, technical breakdown, etc.