Economics is the social science that analyzes the production, distribution, and consumption of goods and services.

Monday, 3 October 2011

typed of unemployment

Types of unemployment

i.                  Frictional unemployment

Occurs when people are in between jobs, entering and reentering the labour force. This may even happen in full employment when people quit their jobs for a better position or higher wages or when fresh graduates are actively seeking for a job.

ii.                  Seasonal unemployment

Arises due to seasonal variation in the activities of particular industries. This may be caused by climatic changes or changes in fashion or by the inherent nature of the industries themselves.

iii.                  Structural unemployment

Arises due to structural changes in the economy of a country. A worker loss a job because that job is not longer a part of the structure of the economy. It has been created through the composition of the labor force does not respond quickly to meet changing demands, technological changes or competition from imported goods and so on.

iv.                  Technological unemployment

Occurs because of changes in the techniques of production. Technological changes are taking place constantly and there is a need for the labour force to keep themselves updated and be responsive to this changes.

v.                  Cyclical unemployment

Occurs when there is a lack of jobs because of a downswing in a business cycle or a recession. When the economy falls into a downswing or recession, the real GDP falls, the demand for goods and services decreases, companies close down and worker are laid off.

vi.                  International unemployment

Those people work in overseas and have been laid off work.