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UNEMPLOYMENT AND IT’S TYPE

25 Mar
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UNEMPLOYMENT AND IT’S TYPE

UNEMPLOYMENT RATE IN INDIA

ACCORDING TO THE CENTRE FOR MONITORING INDIAN ECONOMY (CMIE) AS OF THE 15TH OF JANUARY 2023, THE UNEMPLOYMENT RATE WAS 7.51% (UNEMPLOYMENT RATE -30 DAYS MOVING AVERAGE IN PERCENT%). AND AS OF DECEMBER 2022, IT WAS 8.30%. THE HIGHER THE RATE, THE LOWER THE ECONOMIC STATUS OF A COUNTRY.

TYPES OF UNEMPLOYMENT

EIGHT TYPES OF UNEMPLOYMENT

1.      CYCLIC UNEMPLOYMENT: IT IS ALSO KNOWN AS DEMAND DEFICIT UNEMPLOYMENT. IT IS THE RESULT OF PHASES IN THE BUSINESS CYCLE SUCH AS RECESSION AND DEPRESSION. WHERE DUE TO LOW DEMAND FOR GOODS AND SERVICES IN THE MARKET COMPELLE COMPANIES, CUT THE COST OF PRODUCTION. THEY DO SO BY FIRING WORKERS. IT IS A MAJOR PROBLEM OF CAPITALIST ECONOMIES.

2.      SEASONAL UNEMPLOYMENT: IT OCCURS WHEN A PERSON IS UNEMPLOYED FOR A SEASON IN A YEAR. IT CAN BE SEEN COMMONLY IN THE AGRICULTURAL SECTOR (PRIMARY SECTOR). FOR EXAMPLE- IN RURAL INDIA, WE CAN FIND LANDLESS LABOURERS WHO WORK IN THE FIELDS OF RICH LANDLORDS IN THE CROPPING SEASON. THEY GET UNEMPLOYED DURING THE NON-CROPPING SEASON.

3.      TECHNOLOGICAL UNEMPLOYMENT: IT IS CAUSED DUE TO THE ADVANCEMENT IN TECHNOLOGICAL KNOWN HOW. IT MEANS COMING UP WITH NEW TECHNOLOGY IN AN ECONOMY. IT WOULD BE THE MOST PREVALENT TYPE IN THE COMING YEARS. IT IS COMMON IN URBAN AND DEVELOPED AREAS WHERE TECHNOLOGY EVOLVES WITH THE PASSING OF TIME.

4.      STRUCTURAL UNEMPLOYMENT: IT OCCURS WHEN A SET OF PEOPLE LACK CERTAIN SKILLS REQUIRED FOR THE JOB. IT MAKES THEM INAPPROPRIATE FOR THE JOB. IT OCCURS WHEN A SHIFT HAPPENS IN AN ECONOMY. THIS LEADS TO AN INCOMPATIBILITY BETWEEN THE SKILLS WORKERS POSSESS AND THE SKILLS REQUIRED BY THE JOB. IT CAN BE SEEN IN DEVELOPING COUNTRIES.

5.      DISGUISED UNEMPLOYMENT: IT OCCURS WHEN THE NUMBER OF PEOPLE EMPLOYED EXCEEDS THE NUMBER OF PEOPLE ACTUALLY NEEDED. UNDER THIS TYPE, PEOPLE DO NOT WORK TO THEIR FULL CAPACITY. IT IS MOST COMMON IN THE AGRICULTURAL SECTOR OF INDIA.

6.      VULNERABLE UNEMPLOYMENT: IT IS SAID TO BE EMPLOYMENT IN THE INFORMAL SECTOR. PEOPLE EMPLOYED IN THIS SECTOR ARE WORKING INFORMALLY AND NO LEGAL JOB CONTRACTS AND RECORDS ARE BEING MAINTAINED, WITH POOR WORKING CONDITIONS DUE TO WHICH THIS SECTOR IS NOT COUNTED UNDER THE EMPLOYED LABOUR FORCE. IT IS THE MAIN TYPE OF UNEMPLOYMENT IN INDIA.

7.      CLASSIC UNEMPLOYMENT: IT OCCURS WHEN THE COST OF HIRING A WORKER IS HIGH DUE TO WHICH EMPLOYERS ARE NOT ABLE TO AFFORD ALL AVAILABLE WORKERS IN AN ECONOMY.

8.      FRICTIONAL UNEMPLOYMENT: IT OCCURS WHEN PEOPLE SWITCH TO OTHER JOBS OR FIND A NEW JOB JUST AFTER LEAVING THE PREVIOUS JOB.

SHORT-TERM AND LONG-TERM UNEMPLOYMENT

·        FRICTIONAL UNEMPLOYMENT IS A TYPE OF SHORT-TERM UNEMPLOYMENT. IT HAS NOT BEEN A BIG CONCERN FOR THE ECONOMY.

·        READ MORE

https://cogere.co.in/index.php/2023/02/10/economics/

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