Unemployement -Causes, types and Solution


Unemployment is defined as a situation in which persons of working age, able and willing to work are unable to find paid employment.

Unemployment of labour occurs in the economy if there are people who are capable of working and who are qualified by age, law, custom, and other factors to work, but who cannot find jobs.


  1. Structural Unemployment: This is the type of unemployment which arises as a result of changes in the pattern of demand of certain commodity.  If the demand is low, it could lead to industries reducing their workforce and this eventually results in structure unemployment.
  2. Seasonal Unemployment: This type of unemployment occurs in industries whose production is subject to seasonal variations.
  3. Voluntary Unemployment: Voluntary unemployment arises from the deliberate refusal of labour to work, even though employment opportunities exist (and such people are fit to work).
  4. Technological Unemployment: This is a type of unemployment which results when industries introduce capital intensive technique of production.
  5. Frictional Unemployment: It is associated with switching from one job to another.  Frictional unemployment occurs in the process of search for new jobs.  The time it takes to find new jobs will cause frictional unemployment.
  6. Casual Unemployment: It usually occurs with jobs of an unsettled nature or jobs which are not permanent
  7. Residual Unemployment: This type of unemployment includes all these who cannot work due to physical or mental disabilities.
  8. Cyclical Unemployment: This type of unemployment occurs during the depression or recession stage of the business or trade cycle.
  9. Disguised Unemployment: Disguised unemployment occurs if workers are not efficiently utilized in production or if they are underemployed.


  1. Economic recession
  2. Changes in the pattern of demand
  3. Seasonal changes in agricultural and other forms of production
  4. Economic reform policies
  5. Inadequate educational curricular and poor educational planning
  6. Use of capital intensive methods of production
  7. Rapid population growth and slow rate of economic growth
  8. Physical and mental disability.


  1. Increase in crime rate
  2. Threat to peace and stability
  3. Waste of human resources
  4. High rate of dependency
  5. Migration


  1. Industrialization
  2. Population control
  3. Redesigning educational system
  4. Proper development plans
  5. Provision of social amenities

UNEMPLOYMENT SLIDE SHOW on unemployment from manav500

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