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It involves a waste of human res ource and results in

many social evils like theft, pickpocketing, robbery,

murder etc. Its a seriousecon omic, social and political

problem of the country. Its a cause aswell as effect of poverty.

The unemploym ent rate is used in economic st udies. Rate

is determined as the percentage of those in the

labor force without jobs.There are a variety of different

causes of unemploym ent, and disagre ement on which

causes are most important. Different schoolsof economic

thought suggest different policies to addressune mployment.

Monetarist s for example, believe that controlling inflation to

facilitate growth and investment is more important, and will

lead to increased employmen t in the long run. Keyne

sians on theother hand emphasize the smoothing

out of business cycles bymanipula ting aggregate

demand.Th ere is also disagreeme nt on how exactly to measureun

employmen t. For example, the conservativ e

governmen t, when in power in the United Kingdom, changed

the way in which employmen t was measured several

times. Each time, the figure reduced (Social Tre nds).

Different countries experience different le vels of unemplo

yment; the USA currently experiences lower unemploym

ent levels than the European Union, and it also changes

over time (e.g.the Great depression) throughout

economic cycles.

Unemploy ment rates in the United States (19 50

Unemploy ment rates in the United States

(1950 2005)20 05)

VOLUNT ARY UNEMPL OYMENT :

There are some persons in a society who for

various reasons pre fer to remain jobless even

though there are possibilities of getting job ; some

have the desire to have jobs only of their liking or

giving bette r remunerati on than that in the earlier jobs

and therefore they prefer to remain unemploye d. Such a

kind of unemploym ent isreferred to as VOLUNTA

RY UNEMPL OYMENT

In

VOLUNT ARY UNEMPL OYMENT :VOLUNT ARY UNE

MPLOYM ENT:
Involuntar y unemploym

ent is a situation where a person is physicall y and

mentally fit to work and also willing to work at existing

wage rate, but does not get a job. He is forced to remain

idleeven if he is willing to work.

Voluntary And

Involuntar y Unemploy mentVolu nt

ary And Involuntar y Unemploy ment

RURAL U NEMPLO YMENT: RURAL U

NEMPLO YMENT:
This kind of employmen

t prevails ion rural areas. The nature of problem is also

complicate d. There are only two types of unemplo

yment commonly found in agricultu ral

economy e.g. India

A)A)SEA SONAL UNEMP

LOYME NT:SEAS ONAL UNEMP

LOYME NT:
In an agraria n economy like India,

seasonal unemploym ent is themost significant type

of unemplo yment in rural sector . Agriculture labour

in India is mostly dependent on monsoo n.

B)B)DIS GUISED UNEMP LOYME NT:

In the rural subsis tence agrarian sector of the Indian

economy,th e problem of disguised unemploym ent is

also typical . Disguised

unemploym ent refers to that type of unemplo yment in which

laborersap pear to be worki ng and employed but in

reality, they are not employ ed as they do not add to the total

output. In other words theyare removed from their

jobs, output would not decrease.

URBAN U NEMPLO YMENT:

This type of unemploym

ent is found in urban areas i.e. towns and cities.

1) Industrial Unemploy ment:

This refers to

unemploym ent amongst workers in industrie sand

factories in urban areas. Industrial workers may be

skilled or unskille d. Industrial is open

unemploym ent.

2) Educated Unemploy ment:

It is the problem of educated middle class people of

urban socie ty. It means joblessness amongst the graduates,

post gradua tes,doctors, engineers etc. However this type of

unemploym ent does not exist in countries world wide. This are

specific type of unemplo yment that exist only in few

countries e specially those in involved inagricultu ral

activities like India. Economists distinguish between fivemajor

types of unemploym ent, i.e., cyclical , frictional, structural

and classic al. Realworld unemploym ent may combine

different ty pes,while all four might exist at one time.