What is Unemployment?

Unemployment means:- A situation where Person is willing to work and is Capable of Working but is not able to get work at Prevailing wage Rate

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Which of the following is Unemployed- Teachoo.JPG

Who is an unemployed person as per economists?

An unemployed person is a person who does not get employment of even

1 hour in half a day

(2 hours per day)

 

What are different types of Unemployment?

Open Unemployment

It is the general case of unemployment

Here, the person is willing to work and have the capability to work but is unable to find job

 

Disguised Unemployment

It is an unemployment in which More people are working in a job than actually needed

Example -

In agriculture, a villager employs his whole family for work on farm

But there is actual requirement of only 1-2 persons

Hence, more people are working on a work than needed

This is disguised unemployment

 

Seasonal Unemployment

It is an unemployment in which Persons do not have work during a particular time of year

Example -

In villages, there is more work to be done during the time of sowing and harvesting

In other months, labour is free

So they migrate to cities in search of work

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What is Disguised Unemployment- Teachoo.JPG
What is Open Unemployment- Teachoo.JPG What is Seasonal Unemployment- Teachoo.JPG

Other Types of Unemployment (Not in Syllabus)

  1. Cycical Unemployment
    It is unemployemnt due to market fluctuations like recession, lockdown etc
    In this case, people are not able to work as there are no or very little jobs in market

  2. Technical Unemployment
    Here, People are not able to find jobs because of advancement in technology
    People do not have relevant skills to work in new technology

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What are Different Sources of Data for Unemployment?

Census of India Reports

National Sample Survey Office Reports of Employment and Unemployment Situation

Annual Reports of Periodic Labour Force Survey

Date of Registration with Employment Exchange


NCERT Questions

Question 19

Victor is able to get work only for two hours in a day.

Rest of the day, he is looking for work.

Is he unemployed?

Why?

What kind of jobs could persons like Victor be doing?

View Answer

 

Other Books

Question 1

State any four cases of unemployment in India.

View Answer

Question 2

Discuss the different sources of unemployment data.

View Answer

Question 3

Discuss the concept of "Disguised Unemployment".

View Answer
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Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years and a teacher from the past 18 years. He teaches Science, Economics, Accounting and English at Teachoo