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UNEMPLOYMENT
TYPES AND RATE

PREPARED BY---
AARTI .R. CHOUBAL
(3108)
NISHANT SHARMA
(3085)
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 Unemployed :A person is said to be
´ unemployed " if he or she is looking for work,
is willing to work at the prevailing wage, but is
unable to find a job.

 Unemployment :Unemployment refers to the

condition of being unemployed, or to the
number or proportion of people in the working
population who are unemployed.






  

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 Unemployment rate : The unemployment rate is a ratio,
obtained by dividing the number of unemployed persons by
the number of persons in the labor force.
 India Unemployment rate
 India > Economy
 Unemployment rate: 7.8% (2006 est.)

 Year Unemployment rate Rank Percent Change Date of

Information 2003 8.80 % 110 2002 2004 9.50 % 105 7.95
% 2003 2005 9.20 % 83 -3.16 % 2004 est. 2006 8.90 % 91
-3.26 % 2005 est. 2007 7.80 % 92 -12.36 % 2006 est.
 See Also
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 ‘rictional unemployment.

 Cyclical unemployment.

 Structural unemployment

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 Suppose a person loses a job, perhaps because the
work is finished. This could happen to a construction
craftsman or craftswoman, for example, when the
construction job is finished; or it could happen to an
actor or actress when the show closes.

 It will ordinarily take some time before that person finds

another job. But -- while construction craftsmen and
entertainers can ordinarily expect to face this problem
from time to time, it is something that can happen to
anyone employed.



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The decline in the demand for labor leads (perhaps temporarily) to an
increase in unemployment, as measured by the standard statistics. This
increased unemployment is called cyclical unemployment. In the excess-
supply interpretation, cyclical unemployment in particular is thought of as
excess supply of labor.
 
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 Economists often use the term "structural

unemployment" for employment problems that
arise because of a mismatch between the
needs of employers and the skills and training
of the labor force.



 
 
 

 Economists are always concerned with efficiency
in the use of resources. Resources are used
efficiently when they are devoted to their most
important or productive uses, broadly speaking.

 But it is most clearly inefficient if resources simply

are unused and go to waste. The resource most
likely to be underused is labor. "Unemployment"
seems to be an instance of failure to use the
available labor. This is why many economists see
unemployment as an economic problem.
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 The "Keynesian" view of Unemployment:
Unemployment is an excess supply of labor
resulting from a failure of coordination in the
market economy.

 The "Classical" view of Unemployment:

Unemployment is job search -- people engaged
in the productive work of looking for a better
match between worker and employer.