Types of Unemployment
In rural areas, unemployment is mainly of two types: Seasonal unemployment and Disguised unemployment,
- Seasonal unemployment: It can be explained as the phenomenon where people are employed only for a particular period during the season in a year. For example, Agricultural labourers are dependent upon agriculture season work only in the busy season such as sowing, weeding, threshing and harvesting. when it’s done labourers don’t get much work for the rest of the year. This type of seasonal unemployment occurs mostly in rural areas.
- Disguised unemployment: When marginal physical productivity of labour is zero or sometimes it becomes negative is termed as disguised unemployment. This is the condition when more people are hired or employed to do work that can be easily done by a lesser number of people. In this, there would be no negative effect or impact on their productivity even if some people are removed. For example Family find work at an agricultural plot then the whole family is engaged in work that already requires a less number of people. If the cultivation of one-hectare land requires 5 workers but 8 are working here 3 extra employees or workers are disguised as unemployed as they are not adding to productivity.
In urban areas have mainly Educated unemployment, which can be defined as,
- Educated unemployment: India’s educated young are facing severe challenges one of them is educated unemployment. The causes of educated unemployment depend on factors and the most common factor is a lack of job opportunities. This happens when there are few job openings and employers but are a significant number of people for the job. There has been an unsettling period of widespread unemployment among the educated youth.
For example, Graduates and post-graduates are stumbling from pillar to pillar in search of work. Even the country’s economic growth is also directly related to such issues, Decrease in economic growth leads to an increase in the rate of unemployment or underemployment.
The Main Cause of Educated Unemployment is that individuals are willing to work but they are unable to do as there is no suitable job available according to their qualifications. it is one of the major causes of India’s poverty and backwardness.
Unemployment – Definition, Types, Factors, Disadvantages
People as a resource are defined as people who are a part of the workforce and play a significant role in economic growth by contributing to the productive resources of the country. For the development of the country. A country also needs people who can put those resources to good use and increase production along with various other resources.
To get more resourceful people country needs to do invest in human resources or human capital and it is done through training, education, and healthcare, making the workforce more productive and hence it will be more beneficial for the economy
It refers to a country’s working people in terms of their existing productive skills and abilities like other resources Population is also a resource i.e. a human resource and it has the ability to contribute towards the creation of gross national product when the existing human resource is further developed by becoming more educated and healthy then it is called human capital formation. This human capital formation leads to higher income earned because of higher productivity.