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Explain with examples

  • Open unemployment
  • Involuntary unemployment
  • Seasonal unemployment
  • Disgised unemployment
  • Cynical unemployment

(i) Open Unemployment: Open unemployment refers to a situation where a person who is willing and is able to work does not get work. Such persons remain unemployed for the full time. For example, a person unable to find work on account of migration from rural areas to urban areas is said to be openly unemployed. 

(ii) Involuntary Unemployment: Similar to open employment, involuntary unemployment also refers to a situation where a person remains unemployed against his will and is not able to get work at the existing wage rate.  

(iii) Seasonal Unemployment: Seasonal unemployment that when people are not able to find jobs during some months of the year is called seasonal unemployment. This type of unemployment is most common in the agriculture sector. For example, the workers engaged in the post harvesting activities find employment only during some months of the year and remain unemployed during rest of the time. 

(iv) Disguised Unemployment: Disguised unemployment refers to a situation where the number of persons engaged in a work is more than what is actually required to complete the work. For example, if a piece of land can be cultivated by five people efficiently, but eight people are engaged, then if three are removed even then the farm produce would remain unaffected. In this case the three workers are disguisedly unemployed.

(v) Cyclical Unemployment: Cyclical unemployment refers to the unemployment that occurs due to cyclical fluctuations in the economy such as recession, depression. For example, in the phases of recession and depression there is a fall in the economic activity. Thereby, there is a cut in the production. Consequently, the level of employment also falls and number of workers are rendered unemployed.

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) Seasonal unemployment:

Seasonal unemployment occurs at certain seasons of the year. It is a widespread phenomenon of Indian villages basically associated with agriculture. Since agricultural work depends upon Nature, therefore, in a certain period of the year there is heavy work, while in the rest, the work is lean. For example, in the sowing and harvesting period, the agriculturists may to engage themselves day and night.

But the period between the post harvest and pre sowing is almost workless, rendering many without work. Thus, seasonal unemployment is largely visible after the end of agricultural works.

Disguised unemployment:

Disguised unemployment implies that many workers are engaged in productive work. For example, in Indian villages, where most of unemployment exists in this form, people are found to be apparently engaged in agricultural works. But such employment is mostly a work sharing device i.e., the existing work is shared by the large number of workers. In such a situation, even if many workers are withdrawn, the same work will continue to be done by fewer people.

It follows that all the workers are not needed to maintain the existing level of production. The contribution of such workers to production is nothing. It is found that the very large numbers of workers on Indian farms actually hinder agricultural works and thereby reduce production.

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