UNEMPLOYME

NT

HARINI M
23BPA016
WHAT IS
UNEMPLOYME
NT
• The term unemployment refers to a situation where a
person actively searches for employment but is unable to
find work.
• Unemployment is considered to be a key measure of the
health of the economy.
• Unemployment occurs when workers who want to work
are unable to find jobs.
• High rates of unemployment signal economic distress
while extremely low rates of unemployment may signal an
overheated economy.
• Unemployment can be classified as frictional, cyclical,
structural, or institutional.
• Unemployment data is collected and published by
government agencies in a variety of ways.
• Many governments offer unemployed individuals a small
amount of income through unemployment insurance, as
long as they meet certain requirements
TYPES OF
UNEMPLOYMENT
Frictional Unemployment : This type of
unemployment is usually short-lived. It is also the
least problematic from an economic standpoint. It
occurs when people voluntarily change jobs.

Cyclical Unemployment : It is the variation in the

number of unemployed workers over the course of
economic upturns and downturns, such as those
related to changes in oil prices. Unemployment rises
during recessionary periods and declines during
periods of economic growth.

Structural Unemployment : It comes about through a

technological change in the structure of the economy
in which labor markets operate. Technological
changes can lead to unemployment among workers
displaced from jobs that are no longer needed.
CAUSES OF
UNEMPLOYMENT:

• The Caste System

• Inadequate Economic Growth
• Increase in Population
• Agriculture is a Seasonal Occupation
• Loss of Small-Scale/Cottage Industries
• Low Rates of Saving and Investment
• Ineffective (or absent) Economic Planning
• Labor Immobility
• Job Specialization
• Lack of essential skilling
• The latest data indicates a glimmer of hope, as
India's unemployment rate has recently
declined. According to the
National Sample Survey Survey (NSSO), the
unemployment rate for individuals aged 15
years and above in urban areas decreased to
6.8 percent during January-March 2023 from
8.2 percent a year ago. This positive
development suggests a potential turnaround
in the job market amidst the prevailing
economic complexities. However, continued
vigilance and effective policy measures remain
crucial to foster sustainable job growth and
secure the nation's future prosperity.
The Consequences of Unemployment

• The consequences of unemployment are multifaceted. For individuals,

it can lead to financial stress, loss of self-esteem, and mental health
issues.
• On a broader scale, it can result in decreased economic productivity,
increased poverty rates, and social unrest.
• Governments bear the burden of providing unemployment benefits,
leading to strained public resources.
 Measures to Solve
Unemployment Problems
• Change in industrial technique: to solve the unemployment problem, a
production technique focusing on the needs and means of the country should be
adopted. Capital-intensive technology should be replaced by labor-intensive
technology.
• Dealing with seasonal unemployment: As agro-based and agriculture sectors
provide only seasonal employment. Measures like multi-cropping, animal
husbandry, horticulture, plantation, and horticulture should be adopted. Also,
industries like the cotton industry should be promoted.
• Changes in the Education system: There is a need to change the present
education system. It should emphasize vocational education rather than
imparting static knowledge. Colleges and universities should be available to
students who wish to pursue higher education.
• Assistance on Self-employment: Most people in India are self-employed, but
unfortunately, due to a lack of professional knowledge, they are not able to get
the desired results. Therefore, they should be helped by giving technical training
and using the raw material properly.
• Introduction of new governmental measures: The government should take the
initiative to increase labor productivity and develop better employment
opportunities for all.
• Population control: Population is one of the major concerns associated with the
unemployment rate. Therefore, the population rate must be checked, especially
in rural areas where birth control methods and family planning considerations
must be discussed more.
 CONCLUSION
In conclusion, unemployment is a complex issue with far-reaching
implications. Its resolution requires a multifaceted approach that
addresses both the root causes and the effects. Governments, businesses,
and individuals must work together to create robust economies that offer
opportunities for all. The future of work is changing rapidly, and
adapting to these changes is crucial to ensure that unemployment rates
do not escalate. As such, continuous learning and skills development
will be paramount in maintaining employability in the face of evolving
job markets.