Types/Causes of Unemployment
a) Cyclical Unemployment
This is caused by inadequate or deficiency in aggregate (total) demand in an economy to generate sufficient work for the total working population. It is a serious type of unemployment that affects nearly all industries and is associated with trade cycle.
b) Structural Unemployment
It results from changes in a country’s industrial structure. It affects certain industries because of immobility of labour both geographically and occupationally.
c) Frictional Unemployment
This is a short-term form of unemployment as it occurs when people are temporarily out of work when they are in the process of changing their jobs.
d) Technologically
This occurs due to the changes in techniques of production, that is, the substitution of capital for labour.
e) Seasonal Unemployment
Seasonal unemployment may arise when unfavourable weather conditions prevent crop production or when an outbreak of disease greatly reduces the size of the harvest and hence reduces the requirement of workers.
f) Residual/Hard-core Unemployment
Some of the people will not even be skilled of holding permanent job by the virtue of some physical or the mental disability.
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