Economics for Common People – Part 15 Unemployment
1️⃣ What Is Unemployment?
Unemployment refers to a situation where people who are willing and able to work cannot find jobs.
It is a major macroeconomic problem.
2️⃣ Types of Unemployment
- Frictional Unemployment – Temporary unemployment while changing jobs.
- Structural Unemployment – Skill mismatch between workers and jobs.
- Cyclical Unemployment – Caused by economic slowdown.
- Seasonal Unemployment – Occurs in seasonal industries like agriculture.
3️⃣ Example
During an economic recession:
- Companies reduce production.
- Profits decline.
- Workers are laid off.
This increases unemployment.
4️⃣ Causes of Unemployment
- Slow economic growth
- Lack of skills
- Technological changes
- Population growth
- Automation
5️⃣ Effects of Unemployment
- Loss of income
- Poverty
- Social problems
- Lower economic growth
High unemployment weakens the economy.
6️⃣ How Government Reduces Unemployment
- Encouraging investment
- Skill development programs
- Public employment schemes
- Supporting small businesses
Employment creates income. Income creates demand. Demand drives economic growth.
— Shaktimatha Learning
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