Define unemployment. Describe cyclical, technological, frictional and open unemployment


(i) Unemployment. It refers to a situation when a person is able and willing to work but does not get an opportunity to work.
(ii) Cyclical Unemployment. It is due to slackening of demand for goods, generally witnessed in developed countries.
(iii) Technological or Technical Unemployment. When the introduction of new technology causes displacement of workers, it is called technological unemployment, e.g., introduction of computers reduces the need for labourers drastically in an economy. Motorised transport rendered those engaged in manually driven hand carts, tongas, etc. unemployed.
(iv) Frictional Unemployment. The temporary unemployment which exists during the period of the transfer of labour from one occupation to anotheriscalledfrictional unemployment. Itisdue to ignorance of labour about job opportunities. e.g., Big industrial units and polluting industries have been moved out of the large towns and cities like Delhi and reallocated at distant places. The labour there thrown out of job is either unwilling or unable to move to these new locations of work. This has rendered many workers unemployed thus giving rise to frictional unemployment.
(v) Open Unemployment. In the agricultural sector we have a large group of landless labourers who seek wage employment on farms. But many people fail to get employment and hence remain chronically unemployed. Since they openly search for employment and hence their unemployment is not hidden, this is called open unemployment.