UnEmployment

Hello!
M.Arslan 1635
M.Tayyab 1641

I am here because I love to give

presentations.

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1 Unemployment
And
Its Types
Let’s start with the first set of slides
This is a slide title
1. Defination OF Unemployment
2. Different types of unemployment
3. Natural rate of unemployment
4. Reasons of unemployment
5. Consequence of Unemployment
6. Solution for unemployment
7. >Calculations of unemployment
8. > Labor Force
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Define
unemployment
Unemployment
refers to the
situation where the
people of a country
do not find work to
earn their livelihood.

Unemployment is situation
when people want to do job but
they are unable to find the job. 5
Types of
unemployment
1. 1. Structural Unemployment
2. 2. Seasonal unemployment
3. 3. Frictional unemployment
4. 4. Cyclical unemployment
5. 5. Technological unemployment

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Structural
Unemployment
Structural unemployment is when
shifts occur in the economy that
creates a mismatch between the
skills workers have and the skills
needed by employers.
For example:
when an industry
fires machinery workers and
replaces them with robot
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Seasonal
unemployment
The seasonal unemployment arises
because of the seasonal character of a
particular productive activity so that people
become unemployed during the slack season.

Example: Ice factory, Sugar factory.

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Frictional
unemployment
Frictional Unemployment exists when
people are temporarily out of work .

In other words, the period in which a

person quit from one job and to find the
other one is called period of frictional
unemployment .

It occurs due immobility of labor, shortage

of material, shortage of machinery and
equipment etc.

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Syclical
unemployment
In this case unemployment takes place in
the depression or recession phase of the
business cycle is called cyclical
unemployment.

It's caused by the contraction phase of the

business cycle.

That's when demand for goods and

services fall dramatically, forcing
businesses to lay off large numbers of
workers to cut costs. Cyclical
unemployment tends to create more
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unemployment.
Technological
unemployment
When there is automation or replacement of old
technology by the new one which needs less
workers, hence causing unemployment which is
called as technological unemployment.

Technological unemployment occurs because of

introduction of new technology in the production.

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Under
employment
Underemployment is the situation in
which people are unable to find the
job according the their skills and
experience, hence willing to do any
job even lower than their level of
education and experience.
Example : a person has a Ph.D.
degree but working a job of a
salesmans. 12
Voluntary
unemployment
Sometimes people simply do not
want to do any job, Instead they want
to remain unemployed.
It's the unemployment by the ones
own will.

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Natural rate of
employment
Natural Rate of Unemployment every
economy the 100 % employment is
impossible, so according to
economists some people will be
unemployed in each and every
economy, and that is called as
natural rate of unemployment.
Natural rate of unemployment is
between 4-6.5 %.
Unemployment Rate in Pakistan
It is also called as full employment.
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Causes of Unemployment

1. Increase in Population
2. Rural-Urban Migration
3. Downsizing
4. Lack of Capital
5. Lack of Credit Facility
6. Seasonal Variations
7. Technological Advancement
8. Lack of Skill and Work Experience
9. Lack of Education

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Consequences of
Unemployment

1. Rise in Criminal Activity

2. Violence
3. Drug Addiction
4. Terrorism
5. Social and moral evils

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Solutions
for Unemployment

1. Establishment of Small and

Medium Scale Industries.

2. Vocational and Technical

Training Centers.

3. Encouragement of
Construction Industry.

4. Internship Programs.

5. Provision of easy credit.

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Concept of Labor
ForceLabor Force
The number of people who are above 15 Or 16
years of age (employed plus unemployed) are
called as labor force.

Labor Force = employed + unemployed

▷ Not in Labor Force

A person who is not looking for a job

because he or she does not want to do a job.
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The Labour force
participation
The labour force participation rate is the ratio of labour force to
the population (age of 16 or above). This basically shows the
portion of population that is contributing to labour force.

Labor force participation = (Labor force/Population

above 16) X 100.

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How to calculate
unemployment Rate?
The unemployment rate is ratio of the number of people
unemployed to the total number of people in the labor force.

Unemployment rate = (Unemployed / labor Force) X 100

Example:
If the labor force is 15 million and 3mn are unemployed
then the unemployment rate is;(3/15) X 100 = 20%

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If you have any
question...please keep it for
yourself... I'm not google

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Thanks!
🖤

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