EMPLOYMENT AND UNEMPLOYMENT:A detailed note
EMPLOYMENT:
Employment refers to the capacity in which a worker pursues gainful activity during the reference period.
Every working person is actively contributing to National Income and hence, to the development of the country by engaging in
various economic activities i.e. the real meaning of earning and living.
GROUPS OF EMPLOYMENT
Employed persons are categorised into three broad groups
According to their status of employment, which are as follows
(i) Self-Employed Workers The workers, who own and operate an enterprise to earn their livelihood, are known as Self-employed Workers.
(ii) Casual Wage Labourers The construction workers are known as Casual Wage Labourers. Such labourers are casually engaged in other's farms and in return, get remuneration for the work done.
(iii) Regular Salaried / Wage Employees When a worker is engaged by someone or an enterprise and paid his or her wages on a regular basis, he is known as Regular Salaried Employee.
UNDEREMPLOYMENT
It is a situation in which a person is employed in a job, which is not commensurate with higher qualification, skill and experience. Under this condition, capabilities of the workers
are not utilised to the optimum level.
Underemployment is another problem in developing countries alongwith unemployment. It measures how well the labour force is being utilised in terms of skills, experience and availability of work.
Type of Underemployment
There are two types of underemployment
(i) visible underemployment
It is commonly defined as the under-utilisation of labour time of the workers. Some of the persons categorised as usually employed, do not have work throughout the year due to
seasonality in work or otherwise, and their labour time is not fully utilised. They are, therefore, underemployed. Their undere- employment is termed Visible Underemployment if they report themselves to be not working with respect to a shorter reference period.
(ii) invisible underemployment
Some employed persons, particularly the Self-employed, may appear to work throughout the year. But the work they pursue may not fully meet their needs in terms of generating
sufficient income, giving fulfilment to them, etc.
They may, therefore, want additional or alternative work.Such underemployment is termed as Invisible
Underemployment and therefore, not directly measurable.
UNEMPLOYMENT
According to National Sample Survey Organisation (NSSO),A person who, owing to lack of work, had not worked, bute ither sought work through employment exchanges,
intermediaries, friends or relatives or by making applications to prospective employers or expressed his willingness or availability for work under the prevailing conditions of work
and remuneration, is considered as those seeking or available for work (or unemployed).
Economists define unemployed person as one who is not able to get employment of even one hour in half a day.
TYPES OF UNEMPLOYMENT
Generally, unemployment can be classified into two types which are as follows
1. Voluntary Unemployment
This type of unemployment is on account of persons not interested to take the employment i.e. jobs are available, but
the persons are not interested in being employed. It is psychological in nature. Therefore, such type of persons are not included in the category of unemployed.
2. Involuntary Unemployment
It refers to a situation in which the persons are interested to work, but the jobs are not available. Such persons are included in the category of unemployed persons. Under this,
there are various categories of unemployment, which are as follows
* Structural Unemployment It refers to a mismatch of job vacancies with the supply of labour available, caused by shifts in the structure of the economy. Structural
joblessness results from things like skills mismatches, and policy to address such mismatches is inherently longer term
in scope, involving education and encouraging innovation.
Frictional Unemployment This type of unemployment is caused by people taking time out of work, being between jobs or looking for a job.
The one cause of its evolution is decline of one industry and rise of the other, and labour take some time before moving to the other industry. This type of unemployment is Short term in nature.
Disguised Unemployment This is a situation in which more people are available for work than shown in the
unemployment statistics. It is also known as Concealed Unemployment and the Discouraged Worker Effect.
Educated Unemployment Technology has always displaced some work and jobs. In 1930, the economist John
Maynard Keynes warned of a new disease that he termed as Technological Unemployment.
Open Unemployment It is a condition in which people have no work to do. They are able to work and are also willing to work, but there is no work for them. They are found partly in villages, but very largely in cities.
Seasonal Unemployment
It is on account of the seasonal nature of the productive activities i.e. some productive activities are carried out only for certain duration of a year.
Therefore, the persons employed in such activities are unemployed during off-season. This generally occurs in agro-based industries.
Cyclical Unemployment This type of unemployment is due to the recession in the economy.
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