What is unemployment?

It is a situation where people want to work but they can’t find the job such condition is called unemployment.

In other words, it is those people in the workforce or pool of people who are available for work which does not have a suitable or relevant job.

Unemployment measure is done by unemployment rate, which is the number of unemployed people divided by the total number of people in the workforce.

What is labor force?

The labor force is the number of people who are employed plus the unemployed who are looking for work.

Labor force=employed + unemployed

Labor force- 15-16 years age are called labor force

Measuring employment is the best way to measure health of Indian economy because it measures the proportion of working age population who are employed.

The rate was 39.4% in 2019-20.

Types of unemployment

  • Structural
  • Seasonal
  • Frictional
  • Cyclical
  • Technological
  • Under
  • Voluntary

Structural unemployment

Means shift in the economy, which creates a difference between the skills just like, human handicraft vs Machine made, or computer replaced many of manpower, consequently creates jobless or out of job.

Seasonal Unemployment

As name suggest this kind of unemployment arises with respect to seasons. For an instance, at the time of production of crops all farmers will be busy, where as in summer they won’t be having work as like before.

As a result, creating jobless to farmers.

Frictional Unemployment

It is gap between one job and the other, if a person in working in a company A and he quits the company and joined the company B the time gap between joining company b is frictional type

Reasons like machinery shortage, immobility of labor, equipment.

Cyclical unemployment

This type occurs when there is a slowdown in business, when there is no demand for goods and services fall drastically, when there is rescission, cyclical unemployment can create cascade of unemployment’s.

Technological Unemployment

Nothing that machines snatching work of humans, which means machines replacing the workers and creating jobless is the technological type.

However, this can happen when there is automation or upgrading of technologies

Under unemployment

If a person is qualified and more skilled but fails to get the job of his skills and experiences and will to work for lower than his level of education is called under employment.

Voluntary Unemployment

Sometimes people do not like to work as their wish and such one is the voluntary type

Natural rate of unemployment

In any economy its not possible to get 100% employment. However ,in one or the other reasons there will be jobless or out of work in each and every economy which ranges between 4-6%.


  • Increase in population
  • Migration from rural are
  • Lack of capital
  • Lack of credit
  • Seasonal variations
  • Technological advancement
  • Lack of skill and work
  • Lack of education
  • Natural disasters.

Results of jobless

  • Rise in criminal activities,
  • Violence
  • Drugs
  • Terrorism

Jobless not only increases the above problems. In addition also it can greatly affect one’s mental health, leading to depression and decreased of self-esteem and much more problems.

Solution for jobless

Establishing small and medium scale, vocational and technical training, skill development, or any work like carpenter, welding, electrician, phone repair and many more.

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