UNEMPLOYMENT
1.Cyclical unemployment:-it is when workers lose their jobs because of downturns in the business cycle. You can tell when the economy contracts by measuring gross domestic product. If the economy contracts for two quarters or more, it's in a recession. Cyclical unemployment is usually the main cause of high unemployment.
Cyclical unemployment exists when individuals lose their jobs as a result of a downturn in aggregate demand (AD). If the deucline in aggregate demand is persistent, and the unemployment long-term.it is called either demand deficient, general or Keynesian unemployment.
2.Structural unemployment:-It is form of unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers. Structural unemployment is often brought about by technological changes that make the job skills of many of today's workers obsolete.
Structural unemployment occurs when certain industries decline because of long term changes in market conditions.
3.Regional unemployment :-When structural unemployment affects local areas of an economy, it is called ‘regional’ unemployment. For example, unemployed coal miners in South Wales and ship workers in the North East add to regional unemployment in these areas.
4.Classical unemployment:-Classical unemployment is caused when wages are ‘too’ high. This explanation of unemployment dominated economic theory before the 1930s, when workers themselves were blamed for not accepting lower wages, or for asking for too high wages. Classical unemployment is also called real wage unemployment.
5.Seasonal unemployment:-This exists because certain industries only produce or distribute their products at certain times of the year. Industries where seasonal unemployment is common include farming, tourism, and construction.
6.Frictional unemployment:-This also called search unemployment, occurs when workers lose their current job and are in the process of finding another one. There may be little that can be done to reduce this type of unemployment, other than provide better information to reduce the search time. This suggests that full employment is impossible at any one time because some workers will always be in the process of changing jobs.
7.Voluntary unemployment:-it is defined as a situation when workers choose not to work at the current equilibrium wage rate. For one reason or another, workers may elect not to participate in the labour market. There are several reasons for the existence of voluntary unemployment including excessively generous welfare benefits and high rates of income tax. Voluntary unemployment is likely to occur when the equilibrium wage rate is below the wage necessary to encourage individuals to supply their labour.
8.Disguised Unemployment:- it refers to the work area where surplus manpower is employed out of which some individuals have zero or almost zero marginal productivity such that if they are removed the total level of output remains unchanged.In rural areas,disguised unemployment is generally found in agriculture.
Cyclical unemployment exists when individuals lose their jobs as a result of a downturn in aggregate demand (AD). If the deucline in aggregate demand is persistent, and the unemployment long-term.it is called either demand deficient, general or Keynesian unemployment.
2.Structural unemployment:-It is form of unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers. Structural unemployment is often brought about by technological changes that make the job skills of many of today's workers obsolete.
Structural unemployment occurs when certain industries decline because of long term changes in market conditions.
3.Regional unemployment :-When structural unemployment affects local areas of an economy, it is called ‘regional’ unemployment. For example, unemployed coal miners in South Wales and ship workers in the North East add to regional unemployment in these areas.
4.Classical unemployment:-Classical unemployment is caused when wages are ‘too’ high. This explanation of unemployment dominated economic theory before the 1930s, when workers themselves were blamed for not accepting lower wages, or for asking for too high wages. Classical unemployment is also called real wage unemployment.
5.Seasonal unemployment:-This exists because certain industries only produce or distribute their products at certain times of the year. Industries where seasonal unemployment is common include farming, tourism, and construction.
6.Frictional unemployment:-This also called search unemployment, occurs when workers lose their current job and are in the process of finding another one. There may be little that can be done to reduce this type of unemployment, other than provide better information to reduce the search time. This suggests that full employment is impossible at any one time because some workers will always be in the process of changing jobs.
7.Voluntary unemployment:-it is defined as a situation when workers choose not to work at the current equilibrium wage rate. For one reason or another, workers may elect not to participate in the labour market. There are several reasons for the existence of voluntary unemployment including excessively generous welfare benefits and high rates of income tax. Voluntary unemployment is likely to occur when the equilibrium wage rate is below the wage necessary to encourage individuals to supply their labour.
8.Disguised Unemployment:- it refers to the work area where surplus manpower is employed out of which some individuals have zero or almost zero marginal productivity such that if they are removed the total level of output remains unchanged.In rural areas,disguised unemployment is generally found in agriculture.
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