Submitted By: PrashansaSingh PawarPratiksha JainPoorvi ShrivastavaPriyaDeherwalRahul DubeyRahul Patel

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Oriental Institute of Science & Technology

Submitted To: Dr. Jaya Garg

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Table of Contents

Sr. No. Topic

1) What is Unemployment ?

2) Causes of Unemployment

3) Classification of Unemployment

4) Types of Unemployment

5) Bibliography

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In economics, unemployment refers to the condition of unwanted job losses, or willing workers without jobs. The willingness of the unemployed worker to be employed is the key

to the idea.

A person who is :-

Physically FitMentally soundWell qualifiedWilling to work at prevailing wage rate

BUT DOES NOT GET JOB, THIS SITUATION IS CALLED UNEMPLOYMENT

What is Unemployment ?4

Causes of Unemployment

Rapid population growth.

Economic inflation.

Economic recession.

Changing technology.

Demand of high skilled labor.

Global competition.

Illiteracy.

Over 70% of total labor force is illiterate or educated below primary level.

Agriculture- backward farming 70% population.

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Classification Of Unemployment

VOLUNTARY UNEMPLOYMENT - Unemployment that results when resources which are willing and able to engage in production choose not to produce output. These are resources (especially labor) that decide to

leave one job, often in search of another.

INVOLUNTARY UNEMPLOYMENT - The contrast to voluntary unemployment is involuntary unemployment, in

which resources are forced out of work. Involuntary unemployment is also known as Forced Unemployment.

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Types of Unemployment

1) Seasonal Unemployment

2) Cyclical Unemployment

3) Technical Unemployment

4) Frictional Unemployment

5) Structural Unemployment

6) Disguised Unemployment

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SEASONAL UNEMPLOYMENT REFERS TO A SITUATION WHERE A NUMBER OF PERSONS ARE NOT ABLE TO FIND JOBS DURING SOME MONTHS OF THE YEAR.

EXAMPLE-: AGRICULTURE IS A SEASONAL ACTIVITY. THERE IS AN

INCREASED DEMAND FOR LABOR AT THE TIME OF SOWING, HARVESTING,

WEEDING AND THRESHING. IN BETWEEN THERE IS LITTLE OR NO

DEMAND FOR LABOR. AGRICULTURAL LABOR FINDS HIMSELF UNEMPLOYED DURING THIS PERIOD. THIS IS CALLED

SEASONAL UNEMPLOYMENT.

1) Seasonal Unemployment

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Cyclical unemployment, occurs when there is not enough aggregate demand in the economy to provide jobs for everyone who wants to work.Demand for goods and services fall, less production is needed and less workers too.

2) Cyclical Unemployment

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Unemployment caused by technological changes or new methods of production in an

industry or business.

Example: The evolution of the automobile assembly plant. In the

beginning, everything on the line was done by humans in order to build a car.

The assembly line itself was a great technological innovation. Today, robots

are employed for much of the hand-work humans used to do.

3) Technical Unemployment

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This is a type of voluntary unemployment that arises because of the time needed to match job seekers with job openings. Just as friction always takes place before the slider comes to its final position on the surface, people need time to find the best job, thus voluntarily rubbing back and forth between choices and staying unemployed

Example: When you make up your mind and set off looking for a better job and abandoning the current one, you are in the frictional unemployment labor force.

4) Frictional Unemployment

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This unemployment arises due to structural change in dynamic economy. Unemployment caused by massive mismatch of skills or geographic location is noted as structural unemployment.

EXAMPLE: HEAVY MANUFACTURE (MINING) -MANUFACTURE NOW INVOLVES MACHINES SOHUMANS ARE NO LONGER NEEDED FOR THEHARDER WORK.STRUCTURAL UNEMPLOYMENT POSES MOREOF A PROBLEM BECAUSE WORKERS MUST SEEKJOBS ELSEWHERE OR MUST DEVELOP THESKILLS DEMANDED. THE PROCESS IS FULL OFPAIN AND FRUSTRATION, AND MAY LEAD TONEGATIVE IMPACTS ON SOCIETY.

5) Structural Unemployment

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When more people are engaged in some activity than the number of person required for that, this is called disguised unemploymentExample:An agricultural field require 3 laborers but people engaged in this activity is 6 then this unemployment for 3 labors is called disguised unemployment

6) Disguised Unemployment

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Bibliography

Special guidance of our respected teacher Dr. Jaya Garg.

India Today Magazine, March 2014.

The free encyclopedia “Wikipedia”,

http://en.wikipedia.org/wiki/Unemployment.

‘India in Statics’ A District Level Study by G.S. Bhalla (2013) Vol. 2

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