Banking Diploma: What are the types of Unemployment?

What are the types of Unemployment?

As unemployment is a universal problem and is found in every country more or less, therefore, it is categorised into a number of types. The chiefs among them are stated below:

1) Structural unemployment:
Basically Bangladesh's unemployment is structural in nature. It is associated with the inadequacy of productive capacity to create enough jobs for all those able and willing to work. In Bangladesh not only the productive capacity is much below the needed quantity, it is also found increasing at a slow rate. As against this, addition to labour force is being made at a first rate on account of the rapidly growing population. Thus, while new productive jobs are on the increase, the rate of increasing being low the absolute number of unemployed persons is rising from year to year.

2) Disguised unemployment:
Disguised unemployment implies that many workers are engaged in productive work. For example, in Indian villages, where most of unemployment exists in this form, people are found to be apparently engaged in agricultural works. But such employment is mostly a work sharing device i.e., the existing work is shared by the large number of workers. In such a situation, even if many workers are withdrawn, the same work will continue to be done by fewer people.

It follows that all the workers are not needed to maintain the existing level of production. The contribution of such workers to production is nothing. It is found that the very large numbers of workers on Indian farms actually hinder agricultural works and thereby reduce production.

3) Cyclical unemployment:
Cyclical unemployment in caused by the trade or business cycles. It results from the profits and loss and fluctuations in the deficiency of effective demand production is slowed down and there is a general state of depression which causes unemployment periods of cyclical unemployment is longer and it generally affects all industries to a greater or smaller extent.

4) Seasonal unemployment:
Seasonal unemployment occurs at certain seasons of the year. It is a widespread phenomenon of Indian villages basically associated with agriculture. Since agricultural work depends upon Nature, therefore, in a certain period of the year there is heavy work, while in the rest, the work is lean. For example, in the sowing and harvesting period, the agriculturists may to engage themselves day and night.

But the period between the post harvest and pre sowing is almost workless, rendering many without work. Thus, seasonal unemployment is largely visible after the end of agricultural works.

5) Underemployment:
Underemployment usually refers to that state in which the self employed working people are not working according to their capacity. For example, a diploma holder in engineering, if for wants of an appropriate job, start any business may be said to be underemployed. Apparently, he may be deemed as working and earning in a productive activity and in this sense contributing something to production.

But in reality he is not working to his capability, or to his full capacity. He is, therefore, not full employed. This type of unemployment is mostly visible in urban areas.

6) Open Unemployment:
Open unemployment is a condition in which people have no work to do. They are able to work and are also willing to work but there is no work for them. They are found partly in villages, but very largely in cities. Most of them come form villages in search of jobs, many originate in cities themselves. Such employment can be seen and counted in terms of the number of such persons.

Hence it is called upon unemployment. Open unemployment is to be distinguished from disguised unemployment and underemployment in that while in the case of former unemployment workers are totally idle, but in the latter two types of unemployment they appear to be working and do not seem to be away their time.

7) Voluntary Unemployment:
Voluntary unemployment occurs when a working persons willingly withdraws himself from work. This type of unemployment may be caused due to a number of reasons. For example, one may quarrel with the employer and resign or one may have permanent source of unearned income, absentee workers, and strikers and so on. In voluntary unemployment, a person is out of job of his own desire. She does not work on the prevalent or prescribed wages. Either he wants higher wages or does not want to work at all.

8) Involuntary unemployment:
Involuntary unemployment occurs when at a particular time the number of worker is more than the number of jobs. Obviously this state of affairs arises because of the insufficiency or non availability of work. It is customary to characterise involuntary unemployment, not voluntary as unemployment proper.




Question: What are the ways to remove unemployment?  
Ans: 

Ways and means to remove unemployment in Society of Bangladesh 

In Society we have already seen that there is a good deal of unemployment. This removal of unemployment is necessary for the prosperity of the nation. For this, the following steps have to be taken:

1. Improvement in the agricultural system:
We have already seen that the agricultural system in Bangladesh is backward and underdeveloped. This backwardness is responsible for a lot of unemployment. If the unemployment has to be removed, the system of agriculture has to be modernized and improved, for this the following steps to be taken:


       I.            Holding should be consolidated and made economic.
    II.            Methods of agriculture should be improved and as far as possible farmers should be freed from dependence on nature.  
 III.            System of crops should be planned scientifically and improved. If more crops earned they would provide more employment.
IV.              The farmers should be provided with good seed, good fertilizer, healthy animals, modern implements and tools etc.

2. Adequate arrangement of facilities of irrigation:
In villages the agriculture very much depends on nature. If rains fail, the crops are destroyed. This brings about a good deal of unemployment. Methods of irrigation should be made more modern. They should also be adequate so that it may be possible for people to water their fields.

3. Increasing the area of cultivable land:
Today in the villages there is a great pressure on land. The area under cultivation is not sufficient to provide food to all the people of this country. Barren land should be broken and made fertile. Other methods should also be made for improving the area of cultivable land which is not normally fit for agriculture, also be improved and made fit. This would remove unemployment in the villages.

4. Setting up and develop the cottage and village industries:
In village, people have seasonal employment in agriculture. Apart from it all the persons do not have avenues for the employment. What is needed is to set up of industries so that those who do not have land are employed in it. Apart from it, the agriculturalists during dull season should get employment in these industries. Women and land-less laborers shall also be able to get employment if industries are set up.

5. Improving the means of transport and communication:
In villages there is need to have proper roads and places where offices and stores for seeds etc, may be set up. Public construction should be undertaken in the villages to provide employment to the idle hands. This would improve the employment position in the village. Apart from it, it would also add to the prosperity of the villages.

6. Construction of public Transports, Roads etc:
It is necessary to improve the means of transport and communication. This would have two fold advantages. Firstly, the village people shall be able to send their products to markets for sale and secondly, they shall also be able to go to such other places where they can get employment. Apart from it, this would also provide employment to many persons who shall engage themselves in the task of transporting these people.

7. Organization of the agricultural market:
There is need to organize markets for the agricultural product. At present, there is dearth of such market. This situation creates difficulties for the agriculturalists. On the one hand, they are not able to get proper price and on the other hand they have to suffer from other handicaps. If markets are organized, they would provide employment to certain hands and also help the agriculturalists to get proper price for their labor.

In fact, Bangladesh is such a vast country and unemployment is so large that “Herculean” efforts shall have to be made to surmount this degree. Various economists and social thinkers have suggested various ways for it. Many of these ways have also been incorporated in the Five-Year Plans. In the coming days, our employment position is expected to be better.