UNEMPLOYMENT

Presented by:Bhawani Singh

Parihar

Introduction to Unemployment

Introduction to Unemployment

Every

3rd

6th person in the world is an Indian and every

poor person in the world is also an Indian.

With Increase in the number

persons, Poverty expands.

of

unemployed

The problems of unemployment and poverty is

Very High which demands an immediate solution.

Till 5th Five Year Plan, no serious efforts were taken

to solve the unemployment problem.

It was assumed that the gains of economic growth

would percolate downwards and the inequalities
would decline and problems of poverty and
unemployment would get solved automatically.

Cont:
But

after the Fifth Five Year Plan, removal of

unemployment became as one of the
important Objectives of economic planning in
all five year plans.

In

less developed countries economic growth

generally benefits the elite groups and, as a
result, economic Inequality grow.

India

is facing
Inequalities.

the

same

problem

of

What is
Unemployment?
A

person who is not gainfully

employed in any productive
activity
is
called
as
unemployed and collectively it
is called as Unemployment.

Forms of Unemployment

Voluntary Unemployment

Frictional Unemployment

Forms of
Unemployment

Seasonal unemployment

Disguised unemployment

Chronic unemployment

Voluntary Unemployment
There

are some people who are unwilling work

at the prevailing wage rate,or

There

are some people who get a continuous

flow income from their property or other

sources and need not work.

Voluntary Unemployment is a National waste of

human energy.

Frictional Unemployment
Temporary

phenomenon.

Results

when some workers are temporarily out

of work while changing jobs.

Also

result when the work is suspended due to

strikes or lockouts.

Frictional

unemployment
imperfect mobility of labour.

is

caused

by

Seasonal Unemployment
Industries

such as agriculture, the catering trade,

trade in holiday resorts, some agro-based
activities like sugar mills and rice mills, provide
jobs of seasonal nature which are for certain
period.

People

engaged in such type of work or activities

may remain unemployed during the off-season.

So

it is Seasonal Unemployment.

Disguised Unemployment
When

some workers have zero marginal

productivity so that their removal will not affect
the volume of total output.

Disguised

unemployment
underemployment of labour.

implies

This

kind of unemployment is a common

feature of under developed economies
especially of their rural sector.

In

short, overcrowding in an occupation leads

to disguised unemployment.

Chronic Unemployment
When

unemployment tends to be a long- term

feature of a country it is called chronic
unemployment.

Underdeveloped

countries suffer from chronic

unemployment on account of : vicious circle of poverty
lack of developed resources and their under
utilization
high population growth
backward & even primitive state of technology
low capital formation, etc.

Nature of Unemployment in India

Nature of Unemployment in INDIA

Unemployme
nt

Urban

Industrial
Unemploym
ent

Educated
Unemploym
ent

Rural

Seasonal
Unemploym
ent

Disguised
Unemploym
ent