THE CONCEPT OF UNEMPLOYMENT

THE CONCEPT OF UNEMPLOYMENT

Unemployment means non-utilization of labour in any productive activity for a reward in terms of wages or salaries or profits it also refers to situation whereby factors of production are not engaged in productive activities that can earn them income.

TYPES OF UNEMPLOYMENT

1.     STRUCTURAL UNEMPLOYMENT: When there are changes in a country's industrial structure leading to firms switching from one kinds of production to another and the cause of such changes in the industrial structure is a decline in demand for the product of an industry.

2.     FRICTIONAL UNEMPLOYMENT: This is an unemployment resulting from technical progress making it possible for .new machines to be invented to take the place of labour hence more workers are thrown out of jobs.

3.     SEASONAL UNEMPLOYMENT Labour employment in economic activities such as building construction become unemployed the movement the season for such activities is over. The same thing happens to economic activities such as farming and fishing.

4.     RESIDUAL UNEMPLOYMENT: This is the type of unemployment that faces people who are considered unemployable because of physical or mental deficiency.

5.     VOLUNTARY UNEMPLOYMENT: This refers to the unemployment, which some people face because they choose to be unemployed either because they have wealthy relations, or they are bent on getting particular types of jobs they find more rewarding than existing ones.