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UNAMPLOYMENT
The State Of Being Job Less and looking for work or is unable to find work is
called unempolyment
OR
Unemployment is the unemployment rate; which is the number of unemployed people
divided by the number of people in labor force

Unemployment Rate = U/LF

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TYPES
1 Cyclical Unemployment
2 Frictional unemployment
3 Structural Unemployment
4 Seasonal Unemployment
5 Disguised Unemployment

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Cyclical Unemployment
Cyclical unemployment occur when there is not enough aggregate
demand in the economy to provide
jobs for everyone who want to work
i.e
Demand for goods and services decreases; less production is needed and less
workers too
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Frictional UnemploymentFrictional unemployment is the unemployment that results
from time spent between jobs when a worker is searching for, or transitioning from
one job to another.
This is a type of voluntary unemployment
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Seasonal Unemployment

Seasonal Unemployment Seasonal unemployment refers to a

situation where a number of persons are not
able to find jobs during some months of the year. EXAMPLE-: Agriculture is a
seasonal activity. There is an increased
demand for labour at the time of sowing, harvesting, weeding and threshing. In
between there is little or no demand
for labor. Agricultural labour finds himself unemployed during this period. This
is called seasonal unemployment.
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Structural Unemployment

This unemployment arises due to structural change in dynamic

economy.
Unemployment caused by massive mismatch of skills or geographic location is noted
as structural unemployment.
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Disguised unemployment
when more people are engaged in some activity than the
number of people required for that is
called disguised unemployment