📊 Concept of Unemployment (Economics)

🔹 Meaning of Unemployment

Unemployment refers to a situation where people who are willing and able to work at the prevailing wage rate are unable to find jobs.

👉 In simple words:

“When a person wants to work but cannot get a job, it is called unemployment.”

🔹 Key Features

▪️Person must be willing to work

▪️Person must be able to work

▪️Person must be actively looking for a job

▪️Yet, no employment opportunity is available

🔹 Types of Unemployment

🔸 Frictional Unemployment

    ▪️ Short-term unemployment

    ▪️Happens when people are changing jobs

🔸 Structural Unemployment

▪️Due to mismatch of skills and job requirements

🔸 Cyclical Unemployment

▪️Caused by economic slowdown or recession

🔸 Seasonal Unemployment

Occurs in certain seasons (e.g., agriculture, tourism)

🔸Disguised Unemployment

More people are working than required (common in rural areas)

🔹 Causes of Unemployment

▪️Rapid population growth

▪️Lack of skills and education

▪️Slow economic development

▪️Technological changes

▪️Poor industrial growth

🔹 Effects of Unemployment

▪️Poverty increases

▪️Wastage of human resources

▪️Lower economic growth

▪️Social problems (stress, crime, etc.)

🔹 Conclusion

Unemployment is a major economic problem that affects both individuals and the country’s development. Reducing unemployment requires skill development, job creation, and economic growth.