explain types of unemployment
Following are the types of unemployment:
1. Structural Unemployment: Structural unemployment is long-term and chronic unemployment arises from imbalance between the skills and other uniqueness of workers in the market and the needs of employers.
2. Frictional Unemployment: This unemployment involves people in the middle of transiting between jobs, searching for new one; it is well-matched with full employment. It is sometimes called search unemployment and can be charitable.
3. Seasonal Unemployment: Seasonal unemployment outcome from the fluctuations in demands for labour in convinced industries because of the seasonal nature of production.
4. Cyclical Unemployment: Cyclical or Keynesian unemployment is known as demand deficient unemployment, occurs when there is not enough combined demand in the economy. This is caused by a business cycle recession and salary not falling to meet the equilibrium rate.
5. Classical Unemployment: Classical or real-wage unemployment occurs when real wages for a occupation are put above the market-clearing level. This is frequently credited to government intervention as with the minimum wage or labour unions.
6. Disguised Unemployment: The term disguised unemployment refers to the mass unemployment and underemployment which overcome in the agricultural sector of an underdeveloped and overpopulated country.
7. Residual Unemployment: This kind of unemployment is cause by personal factors such as old age, physical or mental disability, poor work attitudes and inadequate training.
8. Technological Unemployment: This type of unemployment is caused by changes in the techniques of production. Technical changes are taking place continually leading to the finding of new production methods involving a good deal of mechanization. This logically results in the displacement of labour and finally unemployment.