Unemployment System of Pakistan

Definition
unemployment refers to the situation where the people of a country do not find work to earn their livelihood.
OR
unemployment is situation when people want to do job but they are unable to find the job.
TYPE OF UNEMPLOYMENT

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

Example
Ice factory, sugar factory .
 Frictional unemployment
Frictional unemployment exists when people are
temporarily out of work.
In other words, the period in which person quit from
one job and to find the other one is called period of
Frictional unemployment
It occurs due to immobility of labour, shortage of
material, shortage of machinery and equipment etc.
Cyclical unemployment
In this case unemployment takes place in the depression phase of
the business cycle is called Cyclical unemployment
Technological unemployment
When there is auto motion 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.
Underemployment
It 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 salesman.
 Voluntary unemployment

 Sometimes people simply do not want to do any job,

instead they want to remain unemployment.

 Its the unemployment by the ones own will.

Natural rate of unemployment
In 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%.

It is also called as full unemployment.
Cause of Unemployment
 Increase in population
 Rural-urban migration
 Downsizing
 Lack of capital
 Lack of credit faculty
 Seasonal variations
 Technological advancement
 Lack of skill and work experience
 Lack of education
Consequences of Unemployment
1. Raise in Criminal Activity
2. Violence
3. Drug Addition
4. Terrorism
5. Social and moral evils
Solution of unemployment
 Establishment of Small and Medium Scale Industries
 Vocational and Technical Training Centers
 Encouragement of Construction industry
 Internships Programs
 Provision of easy credit