Unemployment

Unemployment - Unemployment Types of Unemployment: After...

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Unemployment Types of Unemployment: After the Great Depression (1929-33), two major economic problems that world economies have been facing are Unemployment and Inflation . Therefore the public authority of any nation today has the primary responsibility of minimizing the level of unemployment and aiming for the full employment condition. An equally important task of the public authority is to contain inflation. There are various types or sources of unemployment. These are the contributory causes of unemployment conditions. The main types of unemployment are: i) Frictional Unemployment: Whenever there are frictions or some maladjustment in economic and productive activities, a part of the labor force is likely to be rendered unemployed. The frictions are caused because of a variety of factors. These include changes in the technical conditions of work, shift in the site of an industrial unit, market imperfections and want of adequate information, failure of adjustments in the supply and demand conditions etc. Normally, frictional unemployment is partial and temporary. It is partial in the sense only a part of the labor force in certain sections of the economy is rendered unemployed. Again it is temporary in the sense once the frictional forces are located and corrected the level of employment can be restored. ii) Structural Unemployment:
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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Unemployment - Unemployment Types of Unemployment: After...

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