Question

How will you explain the term unemployment?

Answer 1

Answer:

Unemployment is a condition in which skilled and abled individuals do not get gainful jobs at a decent wage. There is unemployment in both rural and urban areas. Seasonal unemployment occurs in the rural population and educated unemployment occurs in the urban areas.

Different types of Unemployment

1. Classical unemployment
2. Cyclical unemployment
3. Structural unemployment
4. Frictional unemployment
5. Hidden unemployment
6. Long-term unemployment

Classical Unemployment

1. This happens when the number of job-seekers are more than the number of vacancies.
2. It happens when the real wages for a job are set above the market-clearing level.

Cyclical Unemployment

1. This type of unemployment occurs when there is less need for workers, as there is lesser production of goods and services due to lesser demand for goods and services in the market.

Structural unemployment

1. This type of unemployment occurs when there is a gap in the level of skills needed for a job and the skill levels of the aspiring job seekers.

Frictional Unemployment

1. This type of unemployment occurs in the time period when a worker is transitioning from one job to the other or the time period when the worker is searching for a job.

Hidden unemployment

1. Due to mistakes in the collection of statistics in unemployment, some potential workers who are unemployed are not reflected in the official unemployment data. This is known as Hidden unemployment.

Long Term Unemployment

1. Long-term unemployment is a component of structural unemployment
2. As per definition of European Union Statistics, Long-term unemployment (LTU) is unemployment lasting for longer than one year.

Unemployment Statistics of India

The organisations that share details on unemployment statistics of India are given below.

1. Unemployment statistics in India are usually collected and shared by the Ministry of Labour and Employment (MLE), they collected data from the National Sample Survey Office (NSSO).
2. The United Nations International Labour Organization also publishes its statistics for unemployment in India.
3. Centre for Monitoring Indian Economy a non government has been publishing monthly unemployment statistics from 2016. It is a non-governmental organization.

Unemployment – Causes in India

Some of the causes of unemployment in India are given below:

1. Introduction of machineries in the garment industry.
2. Complex labour regulations at the state and central government levels, global manufacturing companies find it restrictive and complex compared to other countries.