Essay about Unemployment

686 Words Jul 20th, 2015 3 Pages
Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force. Many different variations of the unemployment rate exist with different definitions concerning who is an "unemployed person" and who is in the "labor force." For example, the U.S. Bureau of Labor Statistics' commonly cites the "U-3" unemployment rate as the official unemployment rate but this definition of unemployment does not include unemployed workers who have become discouraged by a tough labor market …show more content…
When the next sowing season starts he again goes back to cultivation. Therefore, it is called seasonal unemployment.
(b) Disguised Unemployment or Underemployment:
It is again a feature of the agrarian economies. When more people are engaged than actually required for production, it is called disguised unemployment. If a part of labour force is withdrawn from the farm the total output of the farm will remain unchanged. The withdrawn labour force will be termed as disguisedly employed.
Under this situation the marginal productivity of labour (i. e., the addition to the total product) over a wide range is zero. Indian agriculture is a self-employing sector. There is absence of alternative occupations in the economy.
The burden of increasing population ultimately; falls on land and there is overcrowding on the farms. Rigid social structure and joint family system encourage this overcrowding. No one appears to be unemployed. But in reality, large part of the labour force is underemployed.
2. Urban Unemployment:
According to 2001 Census, 27.8 per cent population lives in urban areas. Therefore, the magnitude of urban unemployment is not as high as that of rural unemployment. Two kinds of unemployment exist in the urban areas:
(a) Industrial Unemployment:
The Britishers had totally destroyed the village based industries. The condition of artisans and farmers was not good. They migrated to

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