Types of Unemployment in India

Types of Unemployment in India
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Types of Unemployment:-

There are basically 9 types of Unemployment:

  • Structural Unemployment
  • Frictional Unemployment
  • Cyclic Unemployment
  • Disguised Unemployment
  • Educated Unemployment
  • Open Unemployment
  • Under Unemployment
  • Voluntary Unemployment
  • Natural Unemployment
  • Structural Unemployment:

It is caused by structural changes like rapidly growing population, changes in capital investments , technology change etc, its a long run in Indian Economy.

  • Frictional Unemployment:

It occurs when people change from one job to other and remain unemployed in the interval period; to avoid this people will resign the job after getting employed elsewhere.

  • Cyclic Unemployment:

It occurs when a employee thrown out of job due to a recession in economy, this is also called demand deficiency unemployment root cause of this unemployment is lack of demand.

  • Disguised Unemployment:

 It is case where people are employed but their marginal product is zero, which means they are not adding productivity, this type of unemployment seen in Indian agriculture sector.

  • Educated Unemployment:

Even if a person is skilled and trained and failed to obtain a job as per his qualification is called educated unemployment.

  • Open Unemployment:

The labors live without any employment and don’t find any work to do is called open unemployment, it is seen when people migrated from rural to urban.

  • Under Unemployment:

It refers to underutilization of manpower in terms of both time and skill, for example when a post graduated work as a clerk or office boy it is called under unemployment.

  • Voluntary Unemployment:

Though the jobs are available people are not willing to work or rich enough or lazy.

  • Natural Unemployment:

Unemployment ranging from 2% to 3% in the country is known as natural unemployment, it can’t be eliminated at all.

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