Q.Explain the different types of unemployment.

Unemployment exists in several forms: structural (mismatch of jobs and skills), frictional (temporary, between jobs), cyclical (due to downturns), seasonal (work only in certain seasons), disguised (more workers than needed), open (no work at all), educated (jobless qualified persons) and technological (machines replacing labour). India's rural areas mainly face seasonal and disguised unemployment and its towns face open, educated and cyclical unemployment. This is an AP Intermediate 2nd-year Economics topic on human resources.

Unemployment is a condition in which persons who are willing and able to work at the prevailing wage rate are unable to find employment. Its important types are:

1. Structural unemployment — arises from a mismatch between the skills workers have and the skills industries demand, or from changes in the structure of the economy; it is long-term in nature.
2. Frictional unemployment — temporary joblessness when people are changing jobs, searching for work or when there are short delays between leaving one job and joining another.
3. Cyclical unemployment — caused by a fall in demand during a slump or depression in the business cycle, common in industrial economies.
4. Seasonal unemployment — people get work only in certain seasons (for example, agriculture or sugar mills) and remain idle in the off-season; it is widespread in rural India.
5. Disguised (hidden) unemployment — more persons are engaged in a job than are actually required, so some add nothing to output; typical of Indian agriculture where the whole family works on a small farm.
6. Open unemployment — workers have no work at all and are visibly idle, seen mainly in towns and cities. …