Seasonal Unemployment

Seasonal Unemployment is the type of unemployment that occurs at certain seasons of the year. In India, seasonal unemployment is predominately related to agriculture. In agriculture, work is seasonal, and the farmers do not have work to do on the farms for all months of the year. Therefore, when there is no work for men to do on farms, they go to urban areas and look for jobs. The moment the rainy season starts, they return to their villages. Depending on farming practices, soil quality, crop types, yields, etc., the period of seasonal unemployment differs from state to state.

Unemployment and its Types

Unemployment is one of the most important problems that can be found in any country in the world, regardless of its economic condition. Unemployment is defined as a condition wherein people are able and willing to work at the current wage rate but cannot find work. The three major types of unemployment include disguised or hidden unemployment, seasonal unemployment, and open unemployment. Besides these three types, other types of unemployment include educated unemployment, frictional unemployment, structural unemployment, etc.

Key Takeaways:

  • India faces a significant challenge of structural unemployment, where there is a mismatch between the skills possessed by the workforce and the demands of the job market.
  • India has a large population of youth entering the workforce each year. However, the economy struggles to create enough job opportunities to absorb this growing labor force.
  • Women in India face higher unemployment rates compared to men, compounded by factors such as limited access to education, patriarchal societal norms, and lack of suitable job opportunities.
  • Unemployment rates vary significantly across different states and regions in India.

Table of Content

  • Types of Unemployment in India
  • 1. Disguised Unemployment (Hidden Unemployment)
  • 2. Seasonal Unemployment
  • 3. Open Unemployment
  • Other Types of Unemployment in India
  • Types of Unemployment – FAQs

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Types of Unemployment in India

India’s current unemployment issue is primarily structural. Some of the main types of unemployment in our nation are as follows:...

1. Disguised Unemployment (Hidden Unemployment)

Disguised Unemployment is a situation where the number of workers engaged in work is more than actually required. Another name for Disguised Unemployment is Hidden Unemployment. For instance, if five people are working on the same task but only two workers are required for the job, then three people are said to be in disguised unemployment. It is the most common type of unemployment in the agricultural sector of developing nations like India. About one-third of India’s agricultural labourers were disguisedly unemployed in the late 1950s. The primary cause of hidden unemployment is that everyone appears to be working, but the marginal productivity of the excess labour is zero, which implies that the additional workforce’s contribution is zero....

2. Seasonal Unemployment

Seasonal Unemployment is the type of unemployment that occurs at certain seasons of the year. In India, seasonal unemployment is predominately related to agriculture. In agriculture, work is seasonal, and the farmers do not have work to do on the farms for all months of the year. Therefore, when there is no work for men to do on farms, they go to urban areas and look for jobs. The moment the rainy season starts, they return to their villages. Depending on farming practices, soil quality, crop types, yields, etc., the period of seasonal unemployment differs from state to state....

3. Open Unemployment

The economic phenomenon in which people are able and willing to work at the existing wage rate but fail to get work is known as Open Unemployment. Open unemployment is so-called because it is seen and counted in terms of the number of unemployed persons....

Other Types of Unemployment in India

1. Industrial Unemployment:...

Types of Unemployment – FAQs

What is the current unemployment rate in India?...