Discuss in groups and answer the following:

What are the types of unemployment?

Unemployment is the state of condition where the person is not able to engage in any work or job at the prevailing wage rate. It is the state of condition where the person remains jobless. There are different types of unemployment but at large the meaning of unemployment is the when the person is willing to work prevailing wage rate and he is not able to find a job and he is said to be unemployed. The major types of unemployment are:

• Disguised unemployment

It is the condition where the number of people is employed in the production process but the productivity is very low. It mainly is seen in the agricultural land, where all the members of the family are involved but the production is low.

• Cyclical unemployment

The unemployment which is caused due to the fluctuations in the business cycle is called cyclical unemployment. This is mainly because of deficiency in demand in the market.

• Seasonal unemployed

When people are employed only for particular months or seasons, this can be termed as seasonal unemployment. Agricultural work is the main seasonal work because the production takes place only in particular months.

• Structural unemployment

This type of unemployment arises through a change in demand which switches production from one kind of work to another. Structural unemployment is long-term unemployment caused by the decline of certain industries and changes in the production process.