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Types Of Unemployment

Updated on October 21, 2011

Unemployment throughout the world is increasing rapidly. Unemployment is not only an individual tension but it is also a major issue for all the countries in the world. There are many reasons behind unemployment.

Fast growing population is one of the big factors which cause unemployment. Every country in the world is facing this problem and trying to find a better solution.

Rate of unemployment tells the economic value of a country therefore before you want to get information about a country development you should know its unemployment rate.

Studying several reasons and causes of unemployment you would come to know that there are five main types of unemployment.

Frictional Unemployment

This is a temporary condition when someone is doing job but he is not 100 percent happy with that job and looking for a better one. There can be many causes that why he is in search for a better one.

He is leading his life hardly and has to support a big family. He worked hard in search for a new job.

Time period between his current job and new one is said to be frictional unemployment. Sometime a job seeker successfully finds a better job in a very short period. If someone remained unemployed for long time it is called long-term unemployment

Frictional unemployment is sometimes called search unemployment or unemployment of people who are changing their jobs, career and location.

Frictional unemployment is sometime proved to be beneficial because it encourages people to seek out some best jobs.

Frictional unemployment rate increases in June when most students have just graduated and looking for a better job. In rural areas this kind of unemployment rate increases in winter season when construction and agricultural jobs are not available.

People protesting for jobs
People protesting for jobs

Structural Unemployment

Several reasons account to the development of structural unemployment. The main problem for a worker is to work at a new location. Sometime industries location change and create problem for a worker to go for job at new place.

Most companies work for their benefit and give no importance to workers problem. They move their factories to the places where workforce is cheaper.

A lot of changes have been happened in the world due to science and technology especially in last 50 years. Those technologies also affect labor power.

Different kind of machines and devices are available in the market helpful for man but as a disadvantage it has taken place of a labor.

Due to these technologies demand of manpower affected badly and rate of unemployment increase.

When new technologies introduced it requires new skills. But learning new methods and getting training is sometime not easy for people and it causes unemployment.

Due to structural unemployment a big gap is produced between unskilled people and the skills, required for the available job. This kind of unemployment is also called technological unemployment.

Classical Unemployment

When people are without job it is called unemployment. Classical unemployment produces when real wages are higher than the market equilibrium.

All developed and underdeveloped countries are trying to resolve this kind of unemployment.

Classical unemployment can be corrected by reducing wage level or increasing productivity. Main cause of such classical unemployment is trade union. 

Cyclical Unemployment

When economy of a country fall down it affects services of a common man and demand for labor decreases. Unskilled person face serious problem and become unemployed.

Economic concession remained for couple of years and can affect local economy as well as world economy.

It is called cycle because it describes a country's business cycle. Value of goods never remain same and fall down with the passage of time.

Seasonal Unemployment

When people are available and want to work but there is no work. Change in weather and other economical conditions can cause this type of unemployment. For example forestry and fishing is kind of job available for certain months.

Constructions and agriculture are also seasonal jobs. Most road projects take place in summer and homes are mostly built in summer. So construction workers are affected in other seasons and mostly remained jobless in winter season. This kind of unemployment also affects tourist industry, tourists visit different towns in specific season depend on seasonal value of those locations.

Hotels and rest houses in these areas are badly affected in off season and this cause unemployment. Some of these seasonal employees look for a better job in off season and some wait for on season.

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    • fucsia profile image

      fucsia 6 years ago

      Unemployment is a serious problem that affects the dignity, the self-esteem, the quality of life of the person and also the economy and global health. Thank you for speaking about this difficult topic in this well writing and clear way

    • Ultimate Hubber profile image

      Ultimate Hubber 6 years ago

      Well done mate. How do you get these unique ideas to write your hubs on? You got that book titled: "1001 new and unique hub ideas"? :P

    • teamrn profile image

      teamrn 6 years ago from Chicago

      Hassam, A good and intriguing look at unemployment. I'm sensitive to these thoughts because my husband lost his job; just in time for Christmas!

    • hassam profile image
      Author

      hassam 6 years ago from Pakistan

      Oh! That's very sad. Yes, unemployment is a key issue of our lives. I hope your husband gets a better job soon. :)

    • teamrn profile image

      teamrn 6 years ago from Chicago

      Thanks for you good wishes, hey!

    • profile image

      Waqas Hafeez 6 years ago

      Heh Hassam can I ask you one thing. Did you studies in Army Public School, Peshawar in any part of your life.

    • hassam profile image
      Author

      hassam 6 years ago from Pakistan

      No I didn't! :) I live in Karachi and haven't visited any other city in Pakistan.

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