The term “Unemployment” is a situation in which individuals who are actively seeking employment are unable to find a job. It is a measure of labor market inactivity and is used as an indicator of the economic health of a country.
There are different types of unemployment, including frictional unemployment, structural unemployment, and cyclical unemployment. Frictional unemployment refers to the temporary period of unemployment that occurs when workers are in between jobs or when they are searching for a job that better matches their skills and interests. Structural unemployment refers to unemployment that occurs when the demands of the labor market change, such as when new technologies make certain jobs obsolete. Cyclical unemployment occurs when the economy experiences a downturn, leading to a decrease in demand for goods and services, and a reduction in the number of jobs available.
Unemployment can have significant impacts on the economy and on individual workers, including reduced consumer spending, increased poverty, and decreased overall economic growth. It is therefore an important issue for policymakers to address in order to promote a healthy and stable labor market.
Also, read What is the difference between economic activities and non-economic activities?
Image by Mohamed Hassan from Pixabay
