UNEMPLOYMENT

Unemployment, also referred to as joblessness, occurs when people are without work and are actively
seeking employment. During periods of recession, an economy usually experiences high unemployment
rates. There are many proposed causes, consequences, and solutions for unemployment.
 WHAT IS UNEMPLOYMENT

Unemployment is a term referring to individuals who are employable and actively seeking a job but are
unable to find a job. Included in this group are those people in the workforce who are working but do not
have an appropriate job. Usually measured by the unemployment rate, which is dividing the number of
unemployed people by the total number of people in the workforce, unemployment serves as one of the
indicators of a country’s economic status.
 KEY TAKEAWAYS

● Unemployment occurs when workers who want to work are unable to find jobs, which lowers economic
output; however, they still require subsistence.
● High rates of unemployment are a signal of economic distress, but extremely low rates of
unemployment may signal an overheated economy.
● Unemployment can be classified as frictional, cyclical, structural, or institutional.

Submitted by: Kunal Chauhan(20BBA1079)

 ● Frictional Unemployment
● Structural Unemployment
Types of ● Cyclical Unemployment
Unemployment ● Seasonal Unemployment

Made by – Yogesh Verma ( 20BBA1038)

Frictional Unemployment ● It is defined as the number of
unemployed person under the
condition that the number of job
vacancies equals the number of job
seekers who fail to get the job. It is said
to exist when job vacancies equal the
job seekers and yet some persons are
unemployed.

Made by – Yogesh Verma ( 20BBA1038)

Structural Unemployment
● It arises due to structural change in
dynamic economy making some
workers go out of the job. Under
structural unemployment, a person
either goes out of the job or remains
unemployed for prolonged period of
time till he acquires new skills

Made by – Yogesh Verma ( 20BBA1038)

 ● It is the result of businesses not having
enough demand for labour to employ all
those who are looking for work. When
business cycles are at their peak, cyclical
Cyclical Unemployment unemployment will be Iow because total
economic output is being maximized.
When economy output falls, the
business cycle is low and cyclical
unemployment will rise.

Made by – Yogesh Verma ( 20BBA1038)

 ● This unemployment occurs at certain

Seasonal Unemployment seasons of the year. Refers to a

situation where a number of persons
are not able to find jobs during some
months of the year.

Made by – Yogesh Verma ( 20BBA1038)

CAUSES OF
UNEMPLOYMENT
Hunger is not the worst
feature of
Unemployment;
Idleness is.
The major causes of unemployment
in India are as mentioned below:
1. Caste System:
In India caste system is prevalent. The work is prohibited for specific
castes in some areas. In many cases, the work is not given to the
deserving candidates but given to the person belonging to a particular
community.
2. Slow Economic Growth:
Indian economy is underdeveloped and role of economic growth is very
slow. This slow growth fails to provide enough unemployment
opportunities to the increasing population.
3. Increase in Population:
Constant increase in population has been a big problem in India. It
is one of the main causes of unemployment. The rate of
unemployment is 11.1% in 10th plan.
4. Slow Growth of Industrialisation:
The rate of industrial growth is slow. Though emphasis is laid on
industrialisation yet the avenues of employment created by
industrialisation are very few.
5. Defective Planning:
Defective planning is the one of the cause of unemployment. There
is wide gap between supply and demand for labour. No plan had
formulated any long term scheme for removal of unemployment.

ISHA SAINI (20BBA1045)

 ● Unemployment is a
Effects of problem which is faced by
every job seekers in their
unemployment professional life. The effect
it has is not only personal
but also social, economic
and many more

Made by- Sohum Agarwal(20BBA1071)

 ● Unemployment has a psychological
impact on the person

Personal effects ● It has been reported that unemployed

people are prone to die early than
of average.
● It may affect the person’s family’s
unemployment: income if unemployment continues for
long
● It is also stated that if unemployment
continues for a long period for a
person then it will be hard for the
person to get employed again
● It may also lead to depression
● The longer unemployment may affect
the job skills of the unemployed

Made by- Sohum Agarwal(20BBA1071)

 ● It is being stated that
unemployment has lead in
increase of crimes

Social effects of ● It leads to low quality of life and

state of perpetual sufferings
unemployment: ● Higher the degree of
unemployment higher will be
inequality in distribution of
income and wealth
● It leads to vicious circle of
illiteracy, poverty, etc.
● It may also lead to social unrest
because of social division
Made by- Sohum Agarwal(20BBA1071)
 ● Unemployment cause non utilization
of manpower which is a sheer
Economic wastage for the society

effects of ● It cause loss of output in the economy

as unemployed person remains only
Unemployment: as consumers and not as producers
● The capital formation becomes low as
unemployed person neither earn nor
save for investment
● As unemployment increases, the
GDP(Gross Domestic Product) of a
nation falls notably

Made by- Sohum Agarwal(20BBA1071)

 Unfolding unemployment

Unemployment can be swayed by administering the rise of population.

Overpopulation leads to an increase in supply of available labor at the

same decreased demand of it ,resulting in increase of joblessness.

It also increases the competition among the youth for a particular job
whether it be of government or private origin.

We can establish jurisdiction over population by educating people.it will

enhance their knowledge about the modern world and change their
perception of male child supremacy.
RUPAK KUMAR
20BBA1036
 Unfolding unemployment
In today’s world vocational skills and knowledge are considered more
important than having a degree.
We need to cultivate our personal skills so as to make ourselves unique among
the masses.
Technology is dynamic and development never stops ,each day the technology
gets more advanced than what it was before . machines keep replacing humans
in all fields of work and thus it has become mandatory to move ahead from the
conventional form of education and make ourselves capable enough to face the
future.
The competition is tough and there are a number of people out there to do a
particular work and therefore a better education system is required to prepare
the future generation to face these challenges.
RUPAK KUMAR
20BBA1036
 WHAT SHOULD THE
GOVERNMENT DO?
Reduce powers of trade unions.
Government will need to pursue expansionary fiscal policy.
Government should reduce the taxes and increase expenditure on new job
vacancies .
Monetary policy should be reduced which will increase the cash flow in the
market and firms will hire more labor.
Government should focus on infrastructure development .
Government should provide free vocational training to upskill the ability of
migrant workers.
Government should make more investment in new startups to help them
stabilize their business which will produce new job opportunities in future.

RUPAK KUMAR
20BBA1036