DEFINATION: An economic condition marked by the fact that individuals actively seeking jobs remain unhired.

Unemployment is expressed as a percentage of the total available work force. The level of unemployment varies with economic conditions and other circumstances. Unemployment is the state of an individual looking for a paying job but not having one. Unemployment can be defined as a state of worklessness for a man fit and willing to work. Unemployment also means that people have less money to pay income tax on and less money to buy goods and services. Thus the tax collection by government goes down due to unemployment. Industries producing goods and services also suffer because of unemployment as the sale of their products shrink. Unemployment refers to the the state of being unemployed or not having a job i.e. joblessness. A person is said to be unemployed if he or she is looking for work or is willing to work at the prevailing wage but is unable to find the job. in the matter of economy but this progress is low sided that the net results is the sharp increase in the number of unemployed. Population of our country India is increasing day by day. It is the second highest populous country in the world. Today ,we have over 1.15 billion people in our country and so is the increasing unemployment rate. Today, we have both educated and uneducated unemployed people. We have skilled and unskilled unemployed youths both in the urban and the rural areas. Even degree holders are unemployed. The
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main cause of unemployment is the growing population. Other factors are Recessions, Inflation ,corruption, disability, and nepotism Some features of unemployment have been identified as follows 1. The incidence of unemployment is much higher in urban areas than in rural areas. 2. Unemployment rates for women are higher than those for men. 3. The incidence of unemployment among the educated is much higher than the overall unemployment. 4. There is greater unemployment in agricultural sector than in industrial and thinkers have classifi other major sectors.

UNEMPLOYMENT ARE OF TWO TYPES:

(1) Voluntary unemployment In this type of unemployment a person is out of job of his own desire doesn't work on the prevalent or prescribed wages. Either he wants higher wages or doesn't want to work at all. It is in fact social problem leading to social disorganization. Social problems and forces such as a revolution, a social upheaval, a class struggle, a financial or economic crisis a war between nations, mental illness, political corruption mounting unemployment and crime etc. threaten the smooth working of society. Social values are often regarded as the sustaining forces of society. They contribute to the strength and stability of social order. But due to rapid social change new values come up and some of the old values decline. At the same time, people are not is a position to reject the old completely and accept the new altogether. Here, conflict between the old and the new is the inevitable result which leads to the social disorganization in imposed situation. In economic terminology this situation is voluntary unemployment. (2) In voluntary unemployment In this type of situation the person who is unemployed has no say in the matter. It means that a person is separated from remunerative work and devoid of wages although he is capable of earning his wages and is also anxious to earn them.

TYPES OF UNEMPLOYMENT :Cyclical unemployment Cyclical Unemployment occurs

when the unemployment rate moves in the opposite direction as the GDP growth rate. So when GDP growth is small (or negative) unemployment is high. a. This is the result of the trade cycle which is a part of the capitalist system. In such a system, there is greater unemployment and when there is depression a large number of people are rendered unemployed. Since such an economic crisis is the result of trade cycle, the unemployment is a part of it.

b. Sudden unemployment :-

c. When at the place where workers have been employed there is some change, a large number of persons are unemployed. It all happens in the industries, trades and business where people are employed for a job and suddenly when the job has ended they are asked to go.

d.

Unemployment caused by failure of Industries

In many cases, a business a factory or an industry has to close down. There may be various factors responsible for it there may be dispute amongst the partners, the business may give huge loss or the business may not turn out to be useful and so on.

e.

Unemployment caused by deterioration in Industry and business

In various industries, trades or business, sometimes, there is deterioration. This deterioration may be due to various factors. In efficiency of the employers, keen competitions less profit etc. are some of the factors responsible for deterioration in the industry and the business.

f.

Seasonal unemployment :- - Certain industries and

traders engage workers for a particular season. When the season has ended the workers are rendered unemployed. Sugar industry is an example of this type of seasonal unemployment.

G .Structural Unemployment :-

Structural unemployment is long-term and chronic unemployment arises from imbalance between the skills and other uniqueness of workers in the market and the needs of employers. It involves a difference between personnel looking for jobs and the vacancies obtainable often in spite of the number of vacancies creature similar to the number of unemployed people. In this case the unemployed workers not have the specific skills mandatory for the jobs or are located in a different geographical area to the vacant jobs. Structural unemployment is regularly a result of structural change. The government can mitigate the trouble by as long as an infrastructure that offers preparation in these areas so that the command for these jobs can be met g.
h.

Frictional Unemployment :-

This unemployment involves people in the middle of transiting between jobs, searching for new one; it is well-matched with full employment. It is sometimes called search unemployment and can be charitable. New entrants such as graduating students and re-entrants such as former homemakers can also experience a spell of frictional unemployment. Frictional unemployment exists since both jobs and workers are heterogeneous and a difference can result between the uniqueness of supply and demand. Such a mismatch can be connected to skills, payment, work time, location, attitude, taste, and a huge number of other factors. Workers as well as employers accept a certain level of defect, risk or compromise but regularly not right away, they will spend some time and attempt to find a better match. This is in fact helpful to the economy since it results in an enhanced allocation of resources. However if the search takes too long and mismatches are too common the economy suffers since some work will not get done. Therefore government will look for ways to decrease unnecessary frictional unemployment.
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i.
j.

Seasonal Unemployment :Seasonal unemployment outcome from the fluctuations in demands for labour in convinced industries because of the seasonal nature of production. In such industries there is a recurring model in the demand for labour. During the period when the business is at its peak there is a high quantity of seasonal employment but during the off-peak period there is a high recurring unemployment. This is due to seasonal variation in the activities of particular industries cause by climatic changes in fashions or by the inbuilt nature of such industries. The ice factories are blocked in winter throwing the workers out of their jobs because there is no demand for ice during winter season. Likewise the sugar industry is recurring in the sense that the crushing of sugar-cane is done only in an exacting season. Such seasonal industries are bound to give rise to seasonal unemployment.

k.
l. m.

Classical Unemployment :-

Classical or real-wage unemployment occurs when real wages for a occupation are put above the market-clearing level. This is frequently credited to government intervention as with the minimum wage or labour unions.

n.
o. p.

Disguised Unemployment :-

This sort of unemployment is to be establishing in the backward and the underdeveloped countries of Asia and Africa. The term disguised unemployment refers to the mass unemployment and underemployment which overcome in the agricultural sector of an underdeveloped and overpopulated country. q. For example if there are 5 persons trying to cultivate an area of land that could be cultivated as well by three
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persons then only three of these persons are really fully employed and the outstanding 2 persons represents disguised unemployment. The people in underdeveloped countries are externally employed but really they are unemployed the reason being that agricultural production would experience no reduction if a convinced number of them are actually withdrawn from agriculture. r.
s. t.

Residual Unemployment :This kind of unemployment is cause by personal factors such as old age, physical or mental disability, poor work attitudes and inadequate training.

u.
v. w.

Technological Unemployment :-

This type of unemployment is caused by changes in the techniques of production. Technical changes are taking place continually leading to the finding of new production methods involving a good deal of mechanization. This logically results in the displacement of labour and finally unemployment.

x.

CAUSES OF UNEMPLOYMENT
the set up of a modern market economy, there are many factors, which contribute to unemployment. Causes of unemployment are varied and it may be due to the following factors: Rapid changes in technology Recessions Inflation Disability Undulating business cycles Changes in tastes as well as alterations in the climatic conditions. This may in turn lead to decline in demand for certain services as well as products. Attitude towards employers Willingness to work Perception of employees Employee values Discriminating factors in the place of work (may include discrimination on the basis of age, class, ethnicity, color and race). Ability to look for employment

, Our country is set to be progressing by leaps and bounds in the matter of economy but this progress is low sided that the net results is the sharp increase in the number of unemployed. Population of our country India is increasing
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day by day. It is the second highest populous country in the world. Today ,we have over 1.15 billion people in our country and so is the increasing unemployment rate. Today, we have both educated and uneducated unemployed people. We have skilled and unskilled unemployed youths both in the urban and the rural areas. Even degree holders are unemployed . The main cause of unemployment is the growing population. Other factors are Recessions, Inflation ,corruption, disability, and nepotism.

There are many causes of unemployment in India. :a. The greatest cause of unemployment is the overpopulation of the country. The population of the country is increasing fast but the jobs cannot be increased in that proportion. So a large number of people remain unemployed. b. Another cause of unemployment in our defective system of education. The present education is bookish. It should be job-oriented. It does not prepare students for life . At the completion of education, students dream of Govt. jobs, they rush for Govt. jobs. They are least interested in self-employment because some of the youth see more respect, glamour and comfort in jobs while some seek challenges in jobs. c. Prevailing corruption in our society is also one of the cause of unemployment. Machines are also responsible for the problem of unemployment. The machines are labour-saving device. These machines throw thousands of persons out of work.
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People rush to cities in search of employment. The result is that the cottage industries which provide employment to many, are impaired.

d. The increasing population growth is also one of the factories which are contributing to unemployment problem. The development of the country can no create so many job opportunities as are required we must try to decrease population growth by propagating family planning program

e. . The tourist season lasts from around April to September or October time and therefore workers are only required during this period of time. As a result, when those seasonal workers return to their country of origin during the winter period they would be classed as unemployed if unable to find work to tide them over until the following tourist season. Seasonal unemployment is also a common factor in the retail sector where demand for workers peaks during the run up to Christmas and troughs after the end of the January sales. Cyclical unemployment is when workers are unemployed as a result of changes occurring within the trade cycle. f.cause of frictional unemployment Mobility of labor People generally seek another job either because they are fired from the existing job or because they are they want

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to get a better job. In the transition period they are unemployed Expansion of labor force Every year more and more individuals join the labor force. During the phase of their job search they are unemployed.

EFFECTS OF UNEMPLOYMENT:
Unemployment affects not just the person himself but also his/her family and in the long run the society where he lives.

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Unemployment brings with it despair, unhappiness and anguish. It forces people to live their lives in a way they do not wish to The life expectancy is negatively affected 1.Effects of unemployment are social, too, not just economic. 2.Frequently, crime rates rise as people are unable to meet their needs through work. 3. Divorce rates often rise because people cannot solve their financial problems. 4 The rate of homelessness rises, as do the rates for mental and physical illness. Homes are foreclosed upon or abandoned, and neighborhoods deteriorate as a result. 5.The ability of government to provide for people is also seriously compromised. When there is high unemployment, people pay less in income taxes and also pay less in sales taxes because they purchase fewer goods and services 6.The biggest adverse effect of unemployment on the society or the economy is the loss of production that the unemployed persons could have given. Also, unemployment results in higher rates of crime in the society. 6. Unemployment is associated with higher levels of family breakdowns, alcohol and drug abuse, and suicide. 7.Unemployment financial costs: The government and the nation suffer. In many countries the government has to pay
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the unemployed some benefits. The greater the number of the unemployed or the longer they are without work the more money the government has to shell out. Therefore, the nation not only has to deal with the lost income and decreased production but also with additional cost. 8. Mental health problems like: Lack self-confidence, feeling unworthy, depression and hopelessness. With the lost income and the frustration involved in it, the recently unemployed may develop negative attitudes toward common things in life and may feel that all sense of purpose is lost. Frequent emotions could be low self-esteem, inadequateness and feeling dejected and hopeless. 9. Health diseases: The unemployment overall tension can increase dramatically general health issues of individuals. 10. Tension at home: Quarrels and arguments at home front which may lead to tension and increased numbers of divorces etc.

11.political issue:Loss of trust in administration and the government which may lead to political instability 12.Tension over taxes rise: Unemployment also brings up discontent and frustration amongst the tax paying citizens. In order to meet the demands of the
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unemployment fund the government many a times may have to increase the taxes thus giving way to restlessness amongst the tax paying citizens. 13. Insecurity amongst employees: The prevailing unemployment and the plight of the unemployed people and their families may create fear and insecurity even in the currently employed people. 14 Crime and violence: Increase in the rate of crime. 15.Suicide cases: Increase in the rate of suicide attempts and actual suicides as well. 16.Social outing: Unemployment may bring a decrease in social outings and interactions with other people, including friends. 17.Stigma: Unemployment brings with more than just no work. It also brings with it the disgrace that the person has to bear. Nobody likes to be termed as unemployed. 18.competition for jobs and the negotiation power of the individual decreases and thus also the living standard of people with the salaries packages and income reduced. 19.Employment gaps: To further complicate the situation the longer the individual is out of job the more difficult it becomes to find one. Employers find employment gasps as a negative aspect. No one wants to hire a person who has been out of work for some time even when theres no fault of the individual per say. 21.Unemployment can lead to emotional and mental stress.:A person can also get demoralised, he can do wrong things like he can indulge in the habits like alcohol and drug
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abuse or even may commit suicide. Higher income income inequalities and disparities leading tothing to poverty.

REMEDIES OF UNEMPLOYMENT
1.The main remedy lies in the Rapid Industrialization. The need of faster economic growth to generate more jobs. 2.Provided to the youths with a greater focus on vocational skills and self employment. 3.The Government support to struggling industries is necessary to try to save jobs.

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4.Cuts in real wages is also a way to help in reducing the problem of unemployment. 5.Promoting education especially female education and motivating people to have small families. 6.The peasants, workers and other classes of the masses that are uneducated should be motivated to adopt family planning methods. The villages should be made self sufficient in their economy o that growing population can get employment. This can be done by setting up agro-industries in rural areas.

7.Unemployment problem can be solved in India by

initiating corporate agriculture system, improving marketing system, providing social security to farmers,

GOVERNMENT POLICY TO SOLVE UNEMPLOYMENT:Recently UPA Government has come up with Rural Employment Guarantee program which aims to provide minimum days of employment to people living in the villages. This is a laudable programme if implemented sincerely because it will provide employment to people during natural calamities like drought, floods etc. The remedial measures for reducing unemployment may lay greater emphasis on creation of opportunities for self -employment, augmentation of productivity and income levels of the working poor, shift in emphasis from creation of relief type of employment to the building up of durable
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productive assets in the rural areas and instead of attempting to revert somewhat to protectionist policies the pace of privatization may be accelerated. The problem of unemployment in India can be solved by adopting a multi dimensional strategy. Vocational education should be given more importance. More labour intensive industries should be set up to create more jobs. Measures should be taken to reduce seasonal unemployment. Activities allied to agriculture should be developed which would provide additional employment to the agricultural labour force through out the year. The unemployment issue must be tackled with utmost care. The future of the country lies in the hands of youth. Their betterment would tantamount to the betterment of the country as a whole.

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Indian agriculture is a field, which can solve future unemployment situation in India, but this is the most neglected field by politicians and government officials.

Frictional unemployment may be a result of the following reasons:

Mobility of labor

People generally seek another job either because they are fired from the existing job or because they are they want to get a better job. In the transition period they are unemployed Expansion of labor force Every year more and more individuals join the labor force. During the phase of their job search they are unemployed.
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Many economists have termed frictional unemployment a sign of economic well being. Frictional unemployment can exist only in a fast growing economy where the labor force is expanding, mobile, flexible and adaptable Seasonal and cyclic
. The tourist season lasts from around April to September or October time and therefore workers are only required during this period of time. As a result, when those seasonal workers return to their country of origin during the winter period they would be classed as unemployed if unable to find work to tide them over until the following tourist season. Seasonal unemployment is also a common factor in the retail sector where demand for workers peaks during the run up to Christmas and troughs after the end of the January sales. Cyclical unemployment is when workers are unemployed as a result of changes occurring within the trade cycle.

Read more at Suite101: Understanding Causes of Unemployment | Suite101.com http://www.suite101.com/content/understanding-causes-of-unemploymenta243347#ixzz1KurQVjyR A major cause of structural unemployment is simply when the individual's abilities and set of skills are no longer those that are required by the labour market. Therefore, even if an individual seeks to retrain it is still highly likely to result in a prolonged period of unemployment. Read more at Suite101: Understanding Causes of Unemployment | Suite101.com http://www.suite101.com/content/understanding-causes-of-unemploymenta243347#ixzz1KurhgP6p

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