Hello friends, unemployment is a very crucial problem now a days, not only in India but all over the world.In this article I am going to discuss about unemployment and its types. So some facts about unemployment:

Unemployment:

The state of being unemployed or not having a job; "unemployment is a serious social evil"; "the rate of unemployment is an indicator of the health of an economy".

Types of Unemployment :

1. Frictional Unemployment- The portion of unemployment that is due to the normal working of the labour market; used to denote short run job/skill matching problems.

One kind of frictional unemployment is called wait unemployment: it refers to the effects of the existence of some sectors where employed workers are paid more than the market-clearing equilibrium wage. Not only does this restrict the amount of employment in the high-wage sector, but it attracts workers from other sectors who wait to try to get jobs there. The main problem with this theory is that such workers will likely "wait" while having jobs, so that they are not counted as unemployed. In Hollywood, for example, those who are waiting for acting jobs also wait on tables in restaurants for pay (while acting in "Equity Waiver" plays at night for no pay).

2. Cyclical Unemployment- The increase in unemployment that occurs during recessions and depressions.

Like now a days layoffs & retrenchments due to recession. Companies are firing the employees to cut their extra cost to sustain the company.

3. Structural Unemployment- The portion of unemployment that is due to changes in the structure of the economy that results in a loss of jobs in certain industries.

Structural unemployment involves a mismatch between the sufficiently skilled workers looking for jobs and the vacancies available. Even though the number of vacancies may be equal to the number of the unemployed, the unemployed workers lack the skills needed for the jobs — or are in the wrong part of the country or world to take the jobs offered. It is a mismatch of skills and opportunities due to the structure of the economy changing. That is, it is very expensive to unite the workers with jobs.