(a) Differentiate between unemployment and underemployment. (b) With one example each, explain the following (i) Seasonal unemployment (ii) Structural unemp...
Question 1 Report
(a) Differentiate between unemployment and underemployment.
(b) With one example each, explain the following
(i) Seasonal unemployment
(ii) Structural unemployment
(iii) Frictional unemployment
(iv) Cyclical unemployment
Answer Details
(a) Difference: Unemployment is a situation in which people who are willing and able to work at the going wage rate cannot find any work at all. Underemployment is a situation in which people are working, but below their full capacity, that is, they work fewer hours than they could, or in jobs that do not fully use their skills or that yield very low output.
(b) Types of unemployment (with examples):
- Seasonal unemployment: caused by the seasonal nature of some work, so labour is idle in the off-season. Example: farm labourers out of work between planting and harvest.
- Structural unemployment: caused by a change in the structure of the economy or in demand, so certain skills are no longer needed. Example: typists thrown out of work when offices switched to computers.
- Frictional unemployment: the short-term unemployment of workers who are between jobs or searching for a first job. Example: a graduate looking for work after leaving school.
- Cyclical unemployment: caused by a general fall in demand during a slump or depression in the business cycle. Example: factory workers laid off when sales collapse in a recession.
Download The App On Google Playstore
Everything you need to excel in your exams
