Chapter : 2. People As Resources


Unemployment : It is situation when a person is willing to work but fails to find any gainful work or job.
Types of Unemployment :
(A) Disguised Unemployment : It is a situation in which more people are engaged in an activity than required. The people who are actually engaged in such an activity appear to be employed but are not fully employed. In such cases, even if the surplus labourers are removed from work, production does not falls. For example to cultivation field only 4 persons are required, but if 9 persons are working, the additional 5 persons are considered as disguisedly unemployed. It is known as under employment.
Factors Responsible :
1. Over dependent on agriculture.
2. Absence of alternative employment opportunities.
3. Lack of diversification of agriculture.
(B) Seasonal Unemployment : It is a type of unemployment under which people are employed during some parts of the year and remain without work during the rest of the year owing to the seasonal nature of work. For example - agriculture in India is a seasonal activity. During the harvesting and sowing season more laboures are required but after the season is over these laboures become unemployed. Factors responsible seasonal unemployment.
(i) Lack of small scale & cottage industries in rural areas.
(ii) Lack of multiple cropping.
(iii) Lack of commercialization of agriculture.
(C) Structural Unemployment : It is that situation in which unemployment occur due to -
1. Lack of capital
2. Lack of resources
3. Under utilization of natural resources.
4. Surplus workers as compared to demand.
Indian economy is facing structural unemployment as work force is more than the demand.
Cyclical unemployment : It is a type of unemployment which occurs due to slackening of demand for goods. This type of unemployment generally occurs in capitalist countries. This type of unemployment prevails for short duration only.
Technical Unemployment : If unemployment occurs owing to changes in technology it is referred to as technical unemployment.

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