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IN the developing (under-developed) countries falls into four categories, viz., cyclical, seasonal, technological, and disguised.


cause someunemployment, but their major effect is that most people get lower incomes. These countries are capable of generating cyclical fluctuations of their own, but in practice their cyclical fluctuations result from, or are dominated by, movements generated by the industrial countries.
Cyclical fluctuations

Seasonal unemployment in agriculture is usually brought about by natural circumstances. It may sometimes be possible to get over the effects of these by adopting different techniques or by combining resources differently. Ordinarily, the only way to maintain employment in agriculture throughout the year is by making such improvements as will enable the land to be productively employed for longer periods. Where this cannot be done, employment in agriculture will continue to be seasonal, and the only way of meeting the difficulty would be to find employment for the agriculturist in other occupations for the rest of the year. Technological unemploymentis to be found both in developed and developing countries. In both cases, the cause is the same. This is not by itself enough to cause unemployment. But it may do so if the number of workers now required is less than before; and even in this is not so, it will cause some distress if the old workers are unable to adopt the new technique, and cannot find alternative occupations. Rapid economic development is paradoxically the greatest cause of and the greatest cure for technologicalunemployment. It provides the cure by providing new opportunities for employment. It may often happen that those who are displaced are not able to take advantage of the new employment. In such a case technological progress is partly wasted. Rapideconomic development is also the only fundamental remedy for disguised unemployment. The significance of the term disguised is that it is applied only to persons who are not normally engaged in wage employment. The disguised unemployed are those persons who work on their own account, and who are so numerous, relatively to the resources with which they work, that if a number of them were withdrawn for work in other sectors of the economy, the total output of the sector from which they were withdrawn would not get diminished even though no significant reorganization occurred in this sector, and no significant substitution of capital.

The term is not applied to wage labour; presumably employers will not employ a labourer for wage unless his labour increases the total product. The use of the word unemployment in this context is, therefore, somewhat misleading, since it is more often confined to wage labourers, whose status is recorded in unemploymentstatistics. It is better to use the less precise but more familiar term under-employment. In countries like India, there is not category for wage labourers whose unemploymentis not cyclical, seasonal or technological. It may be thought that such a category is needed in countries where population is too large in relation to resources. Over-population is not, however, a cause of unemployment of wage labour. If the wage system is flexible, the whole population can find employment at some low level of wages. There is no correlation between unemployment rates and density of population. Under-employment is due a deficiency of the resources which are necessary to employ productively the available supply of labour. It is usually associated with family employment where, in agriculture or industry, the unit of production and of the supply of labour is the family; it exists because the resources of the family are too small to keep all working members of the family fully employed throughout the year and because there exist no opportunities for directing a part of the supply away into other occupations at appropriate times. The main remedy for under-employment is to create new employment opportunities. Where more land can be brought into cultivation, this will afford some relief. But, in most countries where under-employment is acute, nearly all the cultivable land is already cultivated. Effort has then to be concentrated upon creating new industries off the land, of which manufacturing industries comprise the largest and usually the most promising category. In this context, informal sector units also play a crucial role, and hence the governments of the given countries must provide a big support to such informal enterprises.