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Every 6th person in the world is an Indian and every 3rd poor person in the world is also an Indian. The statistics speak about the gravity of the problem of unemployment and poverty which demand an immediate solution. Keeping in view this fact, removal of unemployment has been mentioned as one of the objectives of all five year plans especially 5th five year plan onwards.

Generally a person who is “willing and able to work” but is not getting the work is said to be unemployed.

Types Of Unemployment






When a person is not willing to work at the prevailing wage rate.

It is waste of human energy.



When a person is temporarily out of work while changing jobs.

It is generally caused by

imperfect mobility of labour.


In industries, such as

construction, catering,

agriculture where worker are employed on a day-to-day basis, there are chances of casual

unemployment due to short-term contracts.



When a person engaged in an occupation does not get the work round the year, he is said to be

seasonally unemployed.


It is generally seen in agricultural sector. The magnitude of seasonal unemployment depends upon number of crops grown, difference between

sowing and harvesting, irrigation facilities.

In India, agricultural workers remain seasonally unemployed

for 3 to 4 months.


Due to introduction of new machines, improvement in method of production often men

threw out of the job. Such unemployment is called technological unemployment.

With introduction of Automated Teller Machines (ATM), several bank employees have been forced to take VRS. It is generally evident in industrial sector.


Unemployment which is

associated with the movements of trade cycle i.e. boom and slump,

inflation and deflation is called cyclical unemployment.

It is not confined to some section of the industry & slowly it engulfs the whole economy in its




Unemployment which is

associated with economic growth and development is called structural unemployment. It is

caused by decline in demand due to change in taste & preference or

due to any other reason.

For eg, people engaged in Banarsi Saree Trade are not finding enough work because women folk are not demanding heavy sarees these days.



When more than the required number of persons are engaged in a work, then the extra number of people so

employed are said to be

disguisedly unemployed.

It is generally evident in

agricultural sector. Due to lack of alternative job person remain engaged in the family farming.

This results in diminishing MPL.

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