What Is Unemployment?

Unemployment occurs when someone is willing and able to work but does
not have a paid job
Unemployment is considered to be a key measure of the health of the
economy.
Unemployment is a critical issue that transcends beyond just the
individual to impact their loved ones and the community at large.
As of March 2023, India's unemployment rate, according to the
Centre for Monitoring Indian Economy (CMIE), stood at 8.11%
In urban areas, the unemployment rate was 7.93%, While in
rural areas, it was slightly lower at 7.44%
Types of Unemployment in India
• Disguised unemployment
• Structural Unemployment
• Seasonal Unemployment
• Vulnerable Unemployment
• Technological Unemployment
• Cyclical Unemployment
• Frictional Unemployment
 Disguised Unemployment
This is a type of unemployment where people employed are more than
actually needed. Disguised unemployment is generally traced in
unorganised sectors or the agricultural sectors.
 Structural Unemployment
This unemployment arises when there is a mismatch between the worker’s
skills and availability of jobs in the market. Examples of such changes include
the replacement of horse-drawn transport with automobiles and the
automation of manufacturing.
 Seasonal Unemployment
That situation of unemployment when people do not have work during certain
seasons of the year such as labourers in India rarely have occupation throughout
the year. Here are a few examples of seasonal jobs:
• Seasonal sales associate
• Holiday performer
• Lifeguard
• Theme park employee
• Seasonal Event staff
Vulnerable Unemployment:

People are deemed unemployed under this unemployment.

People are employed but informally i.e. without proper job
contracts and thus records of their work are never maintained.
 Technological Unemployment

the situation when people lose their jobs due

to advancement in technologies.Technological
changes can lead to unemployment among
workers displaced from jobs that are no longer
needed.
 Cyclical Unemployment
unemployment caused due to the business cycle, where the number
of unemployed heads rises during recessions and declines with the
growth of the economy. Cyclical unemployment gures in India are
negligible.

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 Frictional Unemployment
.Frictional Unemployment also called Search Unemployment, is the
time lag between the jobs. Frictional unemployment is considered as
voluntary unemployment because the reason for unemployment is not
a shortage of jobs, but in fact, the workers themselves quit their jobs in
search of better opportunities
CONTRIBUTE TO GLOBAL
PROBLEMS
• Economic instability: High unemployment rates can lead to decreased
consumer spending, reduced tax revenues, and increased demand for
social services, putting strain on governments and economies worldwide.
•
• Social unrest: Unemployment often correlates with social unrest and
dissatisfaction, as joblessness can lead to feelings of disenfranchisement,
inequality, and frustration, potentially fulling social unrest and even political
instability.
•
• Poverty: Unemployment is a signi cant driver of poverty, as it limits
individuals' ability to access basic necessities and participate fully in
society, perpetuating cycles of poverty across generations.
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• Health outcomes: Unemployment can negatively impact physical and
mental health, as individuals may experience increased stress, depression,
and anxiety due to nancial insecurity and social isolation.
•
• Migration: High unemployment rates in certain regions or countries can drive
migration as people seek better economic opportunities elsewhere, leading to
demographic shifts, cultural tensions, and challenges for both sending and
receiving communities.
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Thankyou