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The employment opportunities of all citizens of a country are impractical due to

several reasons. Unemployment of some kind has always been a countrys problem
of modern societies, whether developed or underdeveloped
Types of unemployment
1. Voluntary unemployment
These are the people who are unwilling to work at the prevailing wage rates and
there are some who are lucky enough to get a continuous flow of unearned
income from their unemployment status.
2. Frictional unemployment
When some workers are temporarily out of work while changing jobs it is called
frictional unemployment, to an extent it is also caused if there is a mismatch
between job and the workers. Such a mismatch can be related to skills, payment,
work time, location, attitude, taste.
3. Casual unemployment
In industries such as building construction, catering or agriculture, where workers
are employed on casual basis, there are chances of casual unemployment
occurring due to short term contracts, which are terminable at any time.
4. Seasonal unemployment
Some nature of job exists for only some time. Work in sugar mills lasts for about
six months. Rice mills work only for a few weeks; they offer employment for
only a certain period in a year.
5. Structural unemployment
Due to a structural change in the economy structural unemployment may take
place or an absence of demand for the workers that are available. Structural
unemployment is also due to technological change.
6. Technological unemployment
Advanced countries with capitalistic economy are subject to subject to trade
cycles. Trade cycles-especially recessionary phases cause cylinder
unemployment in these countries. During the contraction phase of trade cycle in a
economy, aggregate demand falls and leads to disinvestment, decline in
production and unemployment
7. Cyclical unemployment

During the contraction phase of a trade cycle in an economy, aggregate demand

falls and this leads to disinvestments, decline in production and unemployment.
8. chronic unemployment
It is when the unemployment tends to be a long term feature of a country.
Underdeveloped countries suffer from chronic unemployment on account of the
vicious circle of poverty.
9. Disguised unemployment
It refers to a situation of employment with surplus manpower, in which some
workers have zero marginal productivity so that their removal will not affect the
volume of total output.
Specific causes of unemployment
1. In-sufficient rate of development.
Even though employment on the whole is increasing, the resent
unemployment has increased. This is so as a result of insufficient rate of
expansion and not the actual decline of employment opportunities as a whole.
2. Rapid rate of population growth.
The rapid rate of population growth in the early fifties has been another cause
of increasing unemployment in the country.
3. Increasing output of the Indian universities.
The galloping rate at which mass production of matriculates, under-graduates
is going on the Indian universities is another cause of the increasing gap b/w
employment opportunities
4. Backward character of Indian agriculture.
In regard to the colossal rural unemployment and under-employment, the very
heavy pressure of population on land and the backward nature of our farming
cannot provide employment opportunities for the far-too-numerous rural

Why does unemployment persist?

Unemployment rise so sharply in a recession and then persist
somewhat stubbornly long after the recession has ended and a recovery

has begun. When the demand for what a firm is selling declines expectedly
and unsold inventories begin to mount, the firm will restrict production and
look for what ways to trim costs. Because labor costs generally make up a
sizable part of firms marginal costs, layoffs and a rise in unemployment rate
are only to be expected once a recession gets going.

Unemployment in Indian context

India's labour force is growing at a rate of 2.5 per cent annually, but
employment is growing at only 2.3 per cent. Thus, the country is faced with
the challenge of not only absorbing new entrants to the job market (estimated
at seven million people every year), but also clearing the backlog. Sixty per
cent of India's workforce is self-employed, many of whom remain very poor.
Nearly 30 per cent are casual workers. Only about 10 per cent are regular
employees, of which two-fifths are employed by the public sector. In the

rural areas, agricultural workers form the bulk of the unorganized sector.
In urban India, contract and sub-contract as well as migratory agricultural
labourers make up most of the unorganized labour force.

Consequences of unemployment:
The following are the Consequences of unemployment:
The social, economic and political consequences of large-scale and
variety of unemployment are pretty serious and have dangerous
It involves underutilization of valuable human resources.
The time and energies of a large mass of people are not gainfully
Discounted and frustrated young persons are liable to be exploited for
unsocial purposes and indulge in anti-social activities.
Unemployment Rate in India decreased to 4.90 percent in
2013 from 5.20 percent in 2012. Unemployment Rate in
India averaged 7.32 percent from 1983 until 2013,
reaching an all time high of 9.40 percent in 2009 and a
record low of 4.90 percent in 2013. Unemployment Rate in
India is reported by the Ministry of Labour and
Employment, India.

Unemployment is a very serious problem and this can be controlled up
to a certain limit. The present educational system can be modified and technical based
education should be given. The population growth must be slowed down.Goverment
should encourage the self employed people and give aid to them.Structal unemployment
must be overcome by easy mobility of labors.