1) Meaning of unemployment
Unemployment exists when people who are:
- able to work and
- willing to work at prevailing wages cannot find work.
In India, underemployment is also very important due to informality.
2) Types of unemployment (high-yield list)
2.1 Open unemployment
People without any job, actively seeking work.
2.2 Disguised unemployment (common in agriculture)
More workers employed than needed; marginal productivity of some workers is near zero.
2.3 Seasonal unemployment
Work available only in certain seasons (agriculture, some rural activities).
2.4 Frictional unemployment
Short-term unemployment due to job search and transitions.
2.5 Structural unemployment
Mismatch between skills and job requirements; changes in technology/sector composition.
2.6 Cyclical unemployment
Due to business cycle downturns (less emphasized traditionally, but relevant).