Types Of Unemployment
Unemployment refers to the condition when a person does not find any work for livelihood, the person is called Unemployed. Following are the various types of Unemployment.
- Underemployment means not finding work according to one’s capability, or when full employment is not received, then it is called Underemployment. The contribution a person can give in the production in normal circumstances, in this situation, he becomes able to contribute less than that amount. We can take an example to understand it clearly, like – when a qualified Engineer or Doctor works as a clerk or laborer, this situation would be called Under Employment. Such a person is seen working but his full capacity is not utilized.
This form cannot be directly seen. It remains hidden. In India, this kind is found more in agriculture, where more than the required persons are employed. If some people are taken out from the activity of farming, production will not be affected. It means that such an excess number of people do not contribute to farming. Such persons come under Disguised Unemployment.
This arises in the country, due to the lack of capital and excess labor. This type arises when there is a lack of capital in the country whereas; the number of laborers is in excess. Due to this, the development structure of the country becomes unbalanced. That is why this type is called Structural Unemployment.
Seasonal type is found in India in Agricultural Sector. Agriculture does not provide employment to labor for the whole year. At the time of plowing, sowing, and cultivation there is twenty-four hours of work in the agricultural sector but in the rest of the year, there is no work. Thus, laborers remain unemployed in the meantime. This type is called Seasonal Unemployment.
Problems arise due to changes in technology, which comes in this category. When due to modernization, mechanization, renovation, and computerization in any business or industry, the demand for labor becomes less, and laborers working in businesses or industries are removed from their work, then such type is called Technical Unemployment.
At the time of recession in business, the demand for goods becomes less, as a result, laborers are removed from their jobs, and they become unemployed. This type is called Cyclical Unemployment.
When educated persons do not get work, up to their ability and they remain unemployed, then this is said to be Educated Unemployment. In India, this problem could be easily observed.
Open unemployment is when laborers do not get any work and they remain inactive. People migrate from villages to cities in search of work and till they have time of getting work, they eat food from their own money and remain without work. Such a case, in which there is not any kind of work to do is called Open Unemployment.
It is disturbing as well as distressing to find that the standard of living of man is still below the desired level and unemployment is on the increase.
In developed countries, there is a special type seen, which is called Unbalanced Unemployment. This type is related to the “Development Process and Practice”. Due to the excess of capital, new techniques are used in industries in developed countries. And due to loss and lack of demand, industries based on old techniques are shut down regularly. People working in these industries become unemployed. These people need necessary training in new techniques and technologies to stay relevant in the industry. But in the meantime, until they get work again after training, they remain unemployed. This unbalanced position of employment continuously exists in developed countries. This type is called Unbalanced Unemployment.