1

Measurement of unemployment

Income measurement of unemployment

Productive measurement of unemployment

Time criterion to measure unemployment

2
Income measurement of unemployment
In this measure of unemployment we get the
exact picture of available amount of
labor supply and unemployment. According to this criteriaon that
part of labor force which earn incom
lower than particular minimum income would be un employed. In
order to measure unemployment we see
the difference of per capita income to produce specific amount of
goods and services and the per capita
income which labor is actually receiving.
3
Productive measurement of unemployment
we get productivity measure of unemployment
frome income measurement. This Criterion
is written as

U= L-L*

=O/O/L-O/O/

Where L represent actual employed labor

L* represent the employed labor on suitable abd acceptable wages
O shows the level of output
O/L shows the actual level of productivity
O/L* shows the acceptable level of productivity
4
Time criterion to measure unemployment
According totime criterion if a person work
less than the hours which he is
expected to work corresponding to manpower that person will be
unemployed
Time criterion is further divied in two types
a)Traditional measure of unemployment
b)New index to measure unemployment
5
Traditional measure of unemployment

Traditional measure of unemployment is subdivided

in two types
a)person rate of unemployment(PRU)

PRU=UN/LF

b)Time rate of unemployment(TRU)

TRU=UNH/LFH
6
New index to measure unemployment
7
Measurement to reduce unemployment

Following measures can be to remove unemployment

a)Demand sides policies
b)Supply sides policies
Demand sides policies include
a)Monetary policy
b)Fiscal policy
8
Monetary policy
central bank decrease interest rate -> cost of borrowing
decrease ->
AD increase -> GDP increase -> unemployment decrease
Fiscal policy
Govt adopt expansionary fiscal policy -> increase spending ->
decrease taxes ->
AD increases -> real GDP increases -> unemployment decreases
9
Supply side policies
a) Control over population
b)Introduction of self employment scheme
c)Focus on small scale industries
d)