There
are different types of unemployment.
They are categorized in a number of ways, they are 1) Frictional unemployment
1a) search unemployment 1b) casual unemployment, 2) Structural unemployment 2a)
regional unemployment 2b) technological unemployment, 2c) international
unemployment, 3) residual unemployment, 4) seasonal unemployment, 5
Cyclical unemployment.
1)
Frictional unemployment. This
arises from immobility in the labour force. People remain unemployed
either a) they do not want to move to other parts of
the country (geographically immobile) or b) do not have sufficient skills
(occupationally immobile)
1a) Search unemployment. This is a form of frictional
unemployment. It occurs when people do not take the first offered job to
search for better paid job.
1b) Casual unemployment. This is also a form of frictional
unemployment. There are certain groups of people who are out of work
between periods of employment such as opera singers, actors and so on.
2) Structural unemployment. This unemployment arises from a
fundamental change in the structure of industry [such as decline of coal mine
in UK]
2a) Regional unemployment. This is related to structural
unemployment. It arises when the declining industry is concentrated in one
area. The region dependent upon that industry may suffer heavily due to
the decline in the income generated by that industry.
2b) Technological unemployment. This is also related to
structural unemployment. It arises when an new technology is introduced
[such as ATM and other cash & credit cards have reduced the number bank
clerks]
2c) International unemployment. It is also related to structural
unemployment. It arises when workers lose their jobs due to a fall in
demand for domestically produced goods.
3)
Residual unemployment.
This unemployment arises when people find it difficult or impossible to cope
with the demands of modern production method and the disciplines of organized
work.
4)
Seasonal unemployment.
This occurs in the industries which experience remarkable seasonal patterns of
demand. Unemployment in Maldivian tourism industry is an example for this.
5)
Cyclical unemployment.
This is also referred to as demand
deficiency unemployment. It arises due to inadequate demand. [The
aggregate expenditure is insufficient to achieve full employment and hence
unemployment.]
Back to Home Page Click here