UnemploymentPresented by-

Amrit Rudra Paul.Bharatiya Vidya Bhavans Institute of Management ScienceBBA, 3rd SemisterBusiness Environment

Unemployment refers to a situation in which the workers who are capable of working and willing to work do not get employment.

Rate of Unemployment

Total Labours Force

Unemployment Rate

Unemployment Workers × 100

The Main Causes of Unemployment Are

a. Jobless growth.b. Absence of employment opportunities.c. Seasonal employment.d. Joint family system.e. Increase in Labour Force.f. Slow developing industries.g. In appropriate Educational System.h. In sufficient rate of economy progress.

Unemployment

Rural Urban

Classification of Unemployment

Rural Unemployment

Seasonal Unemployment

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Hidden/Disguised Unemployment

1.

2.

Rural Unemployment

• Hidden/ Disguised UnemploymentThis is type of unemployment unusually found inoverpopulated underdeveloped countries, andmore particularly in agricultural sector. Due to useof family labour in agriculture (which is not paidwages in the usual sense), sometimes the numberof persons working on land may be far in excess ofthose who are really required to produce the givenvolume of output.

Rural Unemployment

•Seasonal Unemployment

It occurs when an occupation is not indemand at certain seasons.

1.• Cyclical Unemployment (Keynesian

unemployment)

2. • Frictional Unemployment

3. • Structural Unemployment

Urban Unemployment

Urban Unemployment

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• Cyclical Unemployment (Keynesian unemployment) • The number of unemployed workers exceeds the

number of job vacancies.• This is also related to Business Cycles.

• Frictional Unemployment

Frictional unemployment occurs when aworker moves from one job to another. Itis a result of imperfect information in thelabour market because if job seekers knewthat they would be employed for aparticular job vacancy, almost no timewould be lost in getting a new job,eliminating this from of unemployment.

• Structural UnemploymentStructural Unemployment arise when thequalification of a person is not enough tomeet his/her job responsibilities. conversely,structural unemployment arise when thesalary offered to a person falls short of theminimum wage that can be paid for theconcerned job.

Results of Unemployment

• Individual: Unemployment individuals areunable to earn money to meet financialneed. Failure to pay instalments or to payrent of the room and may lead tohomeless through eviction.Unemployment increases chances ofmalnutrition, illness, mental stress andloss of self-esteem, leading to depression.

Social: An economy with high

unemployment is not using all of theresources. Since it is operating below itsproduction capability, it could have higheroutput if more people are usefullyemployed.

Solution of Unemployment

• A change in the pattern of investment

• Encourage to small enterprises as against big enterprises.

• Problem of choice of technique.

• Encouragement of New Growth Centers in small town & rural areas.

• Subsidies on the basic of employments.

• Reorientation of Education policies.

Thank you.