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Topic: Unemployment!!

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Contents Definition Introduction Causes of unemployment Types of unemployment Cost of unemployment Society Measurements Solution

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Unemployment Unemployment refers to a situation in which the workers who are capable of working and willing to work do not get employment. Unemployment and poverty are the two major challenges that are facing the world economy at present.

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Unemployment leads to financial crisis and reduces the overall purchasing capacity of a nation. This in turn results in poverty followed by increasing burden of debt. Now, poverty can be described in several ways. As per the World Bank definition, poverty implies a financial condition where people are unable to maintain the minimum standard of living.

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Introduction The number of people who have lost or are in danger of losing their jobs is growing so fast it's scary! Unemployment rates have risen at an alarming rate due to the failing economy. Last year you may have thought that your job was 'secure' and you would be there until retirement. Now, nothing is safe and secure anymore. Companies are downsizing, and some are even closing their doors. More and more people are finding themselves unemployed, or have had their hours cut so

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that they have to find a part time job to stay afloat. There is only so many ways you can cut down your expenses. You still have to have the basic food, clothing and shelter. Yet, without a job, how do you manage to survive? How does one support a family? Unemployment compensation only goes so far, and only lasts a little while. Unemployment is everywhere!!!!

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In the set up of a modern market economy, there are many factors, which contribute to unemployment. Causes of unemployment are varied and it may be due to the following factors: 1 Rapid changes in technology 2 Recessions 3 Inflation 4 Disability Causes

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5 Undulating business cycles 6 Changes in tastes as well as alterations in the climatic conditions. 7 Attitude towards employers 8 Willingness to work 9 Perception of employees 10 Employee values 11 Discriminating factors in the place of work 12 Ability to look for employment

Other Causes of Unemployment:

Other Causes of Unemployment High population in growth. Absence of employment opportunities. Seasonal employment. Joint family system. Increasing turnout of students from Indian Universities. Slow developing of industries. Insufficient rate of economic progress.

Types of unemployment:

Types of unemployment Frictional unemployment Structural unemployment Cyclical unemployment Seasonal unemployment

Frictional Unemployment :

Frictional Unemployment Frictional unemployment occurs when a worker moves from one job to another. It is a result if imperfect information in the labor market because of job seekers knew that they would be employed for a particular job vacancy, almost no time would be lost in getting a new job, eliminating this forms of unemployment.

Structural Unemployment:

Structural Unemployment Structural unemployment arises when the qualification of a person is not enough to meet his job responsibilities. Conversely, structural employment arises when the salary offered to a person falls short of the minimum wage that can be paid for the concerned job .

Cyclical Unemployment:

Cyclical Unemployment Cyclical or demand deficient unemployment occurs when the economy is in need of low workforce. The demand for labor increases with the economy in the growth phase. Again, when the economy passes through depression.

Seasonal Unemployment:

Seasonal Unemployment Seasonal unemployment occurs when an occupation is not in demand at certain seasons.

Cost of Unemployment:

Cost of Unemployment Individual: Unemployed individuals are unable to earn money to meet financial needs. Failure to pay installments or to pay rent may lead to homelessness through eviction. Unemployment increases chances of malnutrition, illness, mental stress and loss of self – esteem, leading to depression.


Society An economy with high unemployment is not using all of the resources i.e. labor available to it. Since it is operating below its production capability, it could have higher output if more people are usefully employed. However, there is a difference between economic efficiency and unemployment if the frictionally employed accepted the first job they were offered, they would be likely to be operating at below their skill level, reducing the economy’s efficiency .


Measurement Economists typically focus on the unemployment rate. The unemployment rate is expressed as a percentage and is calculated as follows: Unemployment rate = Unemployed worker/ total labor force*100 As defined by the international labor organization “Unemployed workers” are those who are currently not working but are willing and are able to work for pay, currently available to work and actively searching for work.

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Measures to Prevent Unemployment and Poverty Economic reforms, changes in the industrial policy and better utilization of available resources are expected to reduce the problem of unemployment and poverty that results from it The economic reform measures need to have major impacts on the employment generating potential of the economy. The governmental bodies are also required to initiate long term measures for poverty alleviation.

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Generation of employment opportunities and equality in income distribution are the two key factors that are of utmost importance to deal with the dual problem of unemployment and poverty.

Solutions :

Solutions A change in the pattern of investment. Encouragement to small enterprises as against big enterprises. Problem of choice of technique. Encouragement of new growth centers in small towns and rural areas. Sub sites on the basis of employment. Reorientation of educational policy.

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Rs 52.50 cr earmarked for educated unemployed youth of Haryana GURGAON: In what could come as good news for the unemployed youth in Gurgaon and other districts in Haryana, the state employment department has earmarked Rs 52.50 crore for educated unemployed youth under the Unemployment Allowance Scheme for the current fiscal.

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A spokesperson said Rs 40.76 crore was distributed among 70,470 beneficiaries as unemployment allowance during the previous financial year. He added that under this scheme, Rs 500 per month is being...

Made By:

Made By Harshita Sachdeva Arundhiti Sharma Jessica Kapoor Kamakshi Vashist Prerna Kamboj

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