What is Unemployment?

Unemployment means

A situation where

Person is willing to work


is Capable of Working

but is not able to get work

at Prevailing wage Rate

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?

1. 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


2. Disguised Unemployment

It is an unemployment in which

More people are working in a job

than actually needed


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


3. Seasonal Unemployment

It is an unemployment in which

Persons do not have work during a particular time of year


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

Different Types of Employement - 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


Other Types of Unemployment (Not in Syllabus) - Teachoo.JPG

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


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?


What kind of jobs could persons like Victor be doing?

View Answer


Other Books


State any four cases of unemployment in India.

View Answer



Discuss the different sources of unemployment data.

View Answer



Discuss the concept of "Disguised Unemployment".

View Answer
  1. Class 12 NCERT
  2. Indian Economic Development

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.