Involuntary Unemployment

Full Employment

It is a situation in which all of those people who are willing and able to work at an existing wage rate without any undue difficulty, get work. In general, the term Full Employment means that there is no unemployment in an economy; i.e., everyone gets a job. In simple terms, full employment means that the demand for labour in the economy is equal to its supply. But, in macroeconomics, even during full employment some types of unemployment can exist. It means that full employment does not result in zero unemployment or cent per cent employment....

Involuntary Unemployment

It is a type of unemployment in which all those people who are willing and able to get work at an existing wage rate, do not get work. In simple terms, under involuntary unemployment, people are unemployed against their wishes or under some compulsion. Besides, while determining the total unemployment of an economy, only involuntary unemployment is considered....

Voluntary Unemployment

It is a type of unemployment in which even though a person is physically and mentally fit is unemployed because of his unwillingness to do work at an existing wage rate. While determining the total unemployment of an economy, voluntary unemployment is not considered....