Types of Unemployment-SSC-CGL, SSC-CHSL Banking

Unemployment Statistics in India: SSC-CGL, SSC-CHSL, Banking 

A state of unemployment appears when labor does not obtain employment opportunity despite his willingness to work on the existing wage rate. Unemployment is often used as a measure of the health of the economy. Unemployment measurement is done by the National Sample Survey Organization (NSSO) of India.

Unemployment Formula:

Total number of unemployed/total labor force X 100

Unemployment data is kept under the Ministry of Labour and Employment.

The Periodic Labour Force Survey (PLFS) of the National Sample Survey Office (NSSO) released on June 1, 2019  showed the unemployment the rate in the country in FY18 was at 5.3% in rural India and 7.8% in urban India, resulting in the overall unemployment rate of 6.1%.

Types of unemployment:

  1. Structural unemployment– Itis associated with the economic structure of the economy. When demand for labor falls short to the supply of labor due to a rapidly growing population and their immobility, the problem of structural unemployment appears in the economy.
  2. Underemployment– those laborers are underemployed who obtain work but their efficiency and capability are not utilized at their optimum and as a result, they contribute in the production up to a limited level.
  3. Disguised unemployment– If a person does not contribute anything in the production process or if he can be removed from the work without affecting the productivity adversely, he will be treated as disguisedly unemployed. The marginal productivity of such an unemployed person is zero.John Robinson developed the concept of disguised unemployment
  4. Open unemployment– When the laborers live without any work and they don’t find any work to do, they come under the category of open unemployment. Educated unemployment & unskilled labor unemployment are included in open unemployment.
  5. Educated unemployment– if a person who is educated or trained and skilled fails to obtain a suitable job suited to his qualifications he is said to be educated unemployed.
  1. Frictional unemployment– it is the type of unemployment generated due to change in market conditions (change in demand& supply conditions).
  2. Seasonal Unemployment– it appears due to a change in demand based on seasonal variations. Laborers do not get work around the year.
  1. Cyclic Unemployment– When the demand decreases for certain categories of workers, there is cyclical unemployment in India; such type of unemployment is found in cotton industries.
  2. Chronic Unemployment– If unemployment continues to be a long term feature of a country, it is called chronic unemployment.
  3. Voluntary Unemployment- Here jobs are available but an individual wants to remain idle.
  4. Natural Unemployment: Only 2-3% of unemployment is considered to be natural.

Few Factors which determine Unemployment:

  1. Poverty
  2.    The rapidgrowth of population
  3. Increase in Labour Force
  4.    A slowrate of development
  5. Lack of employment policy
  6. Inappropriate use of technology
  7. Defective education system
  8. Absence of manpower planning.

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