types of unemployment

What are the types of  Unemployment

Unemployment: unemployment refers to a situation in which the workers who are capable of working and willing to work do not get any job or employment. There are different types of unemployment which are discussed in this article.

Definitions:“Unemployment refers to the condition of unwanted job losses or unwilling workers without the job. They willing of the unemployed workers to be employed in the key of ideas.”

“A person who is physically fit, mentally sound, well qualified and willing to work at offered wage rate but does not get a job this situation is basically called unemployment”.

The term unemployment is classified into types:

  • Voluntary unemployment
  • Involuntary unemployment

Voluntary unemployment:

The unemployment has occurred when the resources which are willing and able to engaged in production but not choose to produced output. These people leave current job in search of other.

Involuntary unemployment:

In the involuntary unemployment the resources are forced to work it’s also called forced unemployment.

Types of Unemployment

1. Cyclical unemployment

This type of unemployment when there is a great availability of workers than the job vacancies. It’s happen when there is lower demand for the products due to a lack of customer confidence, the disinterest of customers due to fewer amounts of cash. Cyclical unemployment is based on the say’s law. Cyclical unemployment indicated the increase in production which leads to increase demand for the output (production). Cyclical unemployment is occurred when there is not enough aggregate demand in the economy to provide job for everyone who wants to works. The demand for goods and services fall which show fewer workers. Cyclical unemployment is also called cyclical because it’s linked with the business cycle.

2. Structural unemployment

This type of unemployment is occurred in economy when the structural of organization change in the dynamic economy unemployment is occurred due to mismatch of skills or geographical location is noted for this unemployment. Structural cost brought more problems because workers find the new jobs elsewhere. They should must develop the skills which are demanding into their particular job requirement. This process is create more problems and also carries more pain for the people. Its show the negative impact on society.

For example

1. Heavy machine replace cost of labor because no more labor required doing particular work on machine.

2. The change in technological fired many workers because they have not skilled and not know how to use to technology.

3. It’s unemployment which is caused by a lack of skills.

3. Seasonal Unemployment

Seasonal unemployment refers to situation when the number of people is not in a condition to find the job during some month of the year. Seasonal unemployment is a working agreement where the workers are employed up to a certain part of the year. When such particular timed is passed then these people are considered the unemployment.

For example

  • People who are engaged to house building job they can do work only when house building jobs are available.
  • Agriculture is seasonal job. There is a great demand for labor at the time sowing, harvesting, and threshing. After this time there is no demand for labor.the agriculture employers are finding during this period only after this, they will consider unemployment.

4. Technical Unemployment

This unemployment has occurred when there is change occurred in technology and also method of industry and new manufacturing process are used. Increase in technology brought unemployment because people are replaced by capital goods and machinery because its make job easier and quick.

For example

  • It’s make the cost of labor and productivity less expensive which would make the business more efficient for earning profit. This situation brings the deflation because the prices are fall and increase in supply.
  • The innovation in automobile assembling plant. In the start everything and by human beings now produced through machines.

5. Frictional Unemployment:

Frictional unemployment is the type of voluntary unemployment. It’s happened because of the time needed to match the job seekers with job opening. The Fraction always take place when the slider comes into final place on the surface. Similarly, people need time to fire the best suitable job during this period they stay unemployed.

For Example

When people make up a mind to get the best and effective job, during this period they remain stay unemployed.

6. Disguised Unemployment

This types of unemployment has occurred the number of people has employed the same or a single activity.

For example

Agriculture need only 3 labors but the 6 labor work on a same work.

Regional Unemployment

Regional unemployment is simply structured unemployment that occurs in a specific region of a country.

For example

The change which occurs in the south wale coal mine has left many people unemployed in that region because mostly [people in this region.

Classified unemployment

Classified types of  unemployment occurs when the people are able to work they are not chosen to work. They have sufficient cash and .they have no need to more. In many places the rate unemployment decrease because of payment made for sufficient. Form above and follow from my knowledge. The research and apply personal knowledge technology change earned and bring those which old one replace with the new one. Replace their job to human labor replace with machine.

Cost of unemployment

Individual :Unemployed individuals are unable to earn money to meet financial needs. Unemployment increases the chances of illness, mental stress, and leading depression.

Society :In the economy with high unemployment is not using all the resources such as which reduced the production capacity which leads to unemployment.


The economist always force on the unemployment rate which is found by Applying following:

ü Formula

Unemployment=unemployed workers/total Labour force*100

Unemployed workers are those which are not working but able and willing to work.

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