Indian Economy Presentation on

UNEMPLOYMENT
🐟What is inflation ?

Inflation is the rate of increase in prices over a given

period of time.
🐟What is labour market ?

A labour market is the place where workers and

employees interact with each other. In the labour market,
employers compete to hire the best, and the workers
compete for the best satisfying job.
🐟What is unemployment ?
Unemployment is when an individual who is not employed
and is seeking employment, cannot find work.
Unemployment is a key indicator of the health of an
economy. A low unemployment rate represents a strong
economy while a high unemployment rate represents a
weak economy.
🐟Three important types of unemployment
🐟What is natural unemployment rate ?
● The natural unemployment rate is the minimum unemployment
rate resulting from real or voluntary economic forces.

● It represents the number of people unemployed due to the

structure of the labor force, such as those replaced by
technology or those who lack the skills to get hired

● Natural unemployment is commonplace in the labor market as

workers flow to and from jobs or companies.

● Unemployment is not considered natural if it is cyclical,

institutional, or policy-based unemployment.
🐟Causes of natural rate unemployment;

💠Changes in labour force characteristics

💠Changes in labour market institutions
💠Changes in government policies
🐟Frictinal unemployment ?

Frictional unemployment occurs in a growing, stable

economy. Workers moving from job to job and new workers
entering the workforce contribute to frictional
unemployment. Frictional unemployment is also caused by
those deciding to prioritize taking care of their family,
returning to school, or finding purpose in life.
🐟Wait unemployment ?

One kind of frictional unemployment is called wait

unemployment: it refers to the effects of the existence of
some sectors where employed workers are paid more than
the market-clearing equilibrium wage.
 THANK YOU
Project by- I B.Com ‘A’ Students ;

Angelin Stanley
Akshita.s
Amsaveni.v