(a) What is unemployment of labour?. (b) With an example each, explain the following types of unemployment: (i) frictional unemployment; (ii) structural une...

Answer Details

(a) Unemployment of labour refers to a situation where a person who is willing and able to work is unable to find a job. In other words, it is a state of being unemployed.

(b)

1. (i) Frictional unemployment occurs when workers are between jobs and are searching for new employment opportunities. For example, a person who resigns from their job and is searching for a new job is experiencing frictional unemployment.
2. (ii) Structural unemployment occurs when there is a mismatch between the skills of workers and the requirements of available jobs. For example, if a worker is highly skilled in a particular industry that has declined, they may find it difficult to find a job in that industry, and may experience structural unemployment.
3. (iii) Seasonal unemployment occurs when workers are employed in jobs that are only available during certain seasons of the year. For example, agricultural workers may experience seasonal unemployment during the off-season when there is no work available.

(c)

There are several causes of unemployment in a country. These include:

• Economic recession or downturn: This can lead to a decrease in economic activity, causing businesses to reduce their workforce or shut down, resulting in unemployment.
• Technological advancements: Technological advancements can make certain jobs obsolete, resulting in workers losing their jobs.
• Lack of education and skills: Workers who lack education or skills may find it difficult to find a job in a competitive job market.
• Government policies: Government policies such as taxation, regulations, and trade policies can affect businesses and their ability to hire workers, resulting in unemployment.