Unemployment
Definition
- The International Labour Organisation (ILO) defines an unemployed person as being unemployed for a given week; being available to take a job within two weeks; having actively sought a job in the last four weeks or having found one starting in less than three months
- Unemployment rate = [Total unemployed / Total Labour Force]
Types
- Disguised Unemployment: When more people are employed than needed, particularly in agriculture and the unorganised sectors.
- Seasonal Unemployment: Unemployment that occurs during specific seasons, especially in agriculture, when labor demand is not constant.
- Structural Unemployment: Unemployment arising from a mismatch between available jobs and the skills of the workforce.
- Cyclical Unemployment: Unemployment caused by economic recessions or downturns, which decreases during periods of economic growth.
- Technological Unemployment: Unemployment caused by technological advancements that make certain jobs obsolete.
- Frictional Unemployment: Temporary unemployment caused by the time taken for an individual to transition between jobs or search for a new one.
- Vulnerable Employment: Employment in informal sectors without job contracts or legal protection, often considered “unemployed” due to lack of formal records.