Unemployment is a complex phenomenon. It is easy to notice but difficult to define. In ordinary or common sense, the term unemployment denotes a situation when a person is not gainfully employed in a productive activity and thereby does not work or earn. But unemployment in the real sense of the term is not as comprehensive as conveyed by ordinary sense.
Unemployment may be either voluntary or involuntary. Voluntary unemployment refers to those persons who are voluntarily unemployed, i.e., unemployed by their choice. They may not work due to laziness or otherwise; they are not interested in any gainful job. They are unemployed not out of compulsion but due to their choice.
In this category, we may include both the ‘idle rich' as well as the 'idle poor'. Similarly, there may be some anti-social people such as thieves or pickpockets who may also be voluntarily unemployed.
It would be inappropriate to include such cases of voluntarily unemployed persons under ‘unemployment'. Voluntarily unemployed persons, therefore, are not considered unemployed.
Unemployment, reality, is taken in the sense of involuntary unemployment. Involuntary unemployment refers to a situation when people are willing to work at the prevailing wage rate but are unable to find work.
Looked from this viewpoint, unemployment is a 'situation when there are some able-bodied persons who have the ability to work and are willing to work at the prevailing wage rate, but are not able to find work which may yield them some regular income'. Unemployment, therefore, is a situation when the person is without work involuntarily.
There are many types of Unemployment, Here are some types main Unemployment.
- Cyclical Unemployment
- Structural Unemployment
- Open Unemployment
- Disguised Unemployment
- Seasonal Unemployment
- Educated Unemployment
- Technological Unemployment