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Unemployment is defined as a situation when individuals who are capable of working, and are actively seeking work, are unable to find any work.
The issue of unemployment has been a significant concern since India’s independence in 1947. The first Five Year Plan (1951-56) emphasized the need for employment generation through industrialization. The subsequent plans continued to focus on employment generation through various schemes and policies.
1. **Frictional Unemployment**: Occurs when individuals are temporarily unemployed while transitioning from one job to another.
2. **Structural Unemployment**: Arises from a mismatch between the skills of the workforce and the needs of the employers.
3. **Cyclical Unemployment**: Related to the cyclical trends in the economy, typically arising during economic downturns.
4. **Seasonal Unemployment**: Occurs when individuals are unemployed at certain times of the year when demand for labor is low.
| Feature | Frictional Unemployment | Structural Unemployment | Cyclical Unemployment | Seasonal Unemployment |
|------------------------|-------------------------|------------------------|-----------------------|-----------------------|
| Duration | Short | Long-term | Varies | Varies |
| Causes | Job transitions | Skill mismatch | Economic cycles | Seasonal work nature |
| Examples | Recent graduates | Technological changes | Recession | Agriculture |
Unemployment refers to a situation where individuals who are capable of working, and are actively seeking work, are unable to find any work.
Types of Unemployment: 1. Frictional Unemployment 2. Structural Unemployment 3. Cyclical Unemployment 4. Seasonal Unemployment
The National Policy for Skill Development and Entrepreneurship, 2015 aims to enhance the productivity of the workforce.
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 provides a legal guarantee for at least 100 days of unskilled wage employment in a financial year to every rural household.
Article 41 - Right to work, to education and to public assistance in certain cases.
Article 42 - Provision for just and humane conditions of work and maternity relief.
The Employment Generation Programme (EGP) aims to provide self-employment opportunities to unemployed youth.
The Unemployment Rate is calculated as the percentage of unemployed people in the labor force.
Frictional, Structural, Cyclical, Seasonal (FSCS) - Remember the first letters.
41 and 42 for Employment - 4 stands for Right to work, 2 for Conditions of work.
MGNREGA for rural jobs - Remember it as 'Mahatma Gandhi's Guarantee'.