Question

Answer the following in detail:

Explain the types of Industrial unemployment in India.

Answer 1

The types of unemployment in India are as follows:

A. Technological Unemployment:

1. Technological unemployment arises because of changes in technology.
2. Modern technology is capital-intensive and requires less laborers.
3. When new techniques are introduced in the industrial sector, existing workers become unemployed due to lack of proper training, for example, computerization, the introduction of robotic technology, etc. led to technological unemployment

B. Frictional Unemployment:

1. Frictional unemployment is caused due to the breakdown of machinery, power failure, shortage of raw materials, strikes by workers, etc.
2. Frictional unemployment is temporary by nature.

C. Cyclical Unemployment:

1. Cyclical unemployment is the result of cyclical fluctuations in business activity.
2. Every economy passes through phases of prosperity and depression.
3. During the period of depression, effective demand falls. This further leads to a fall in the prices and profits earned by the producers. As a result, investment and production of commodities fall.
4. A fall in production leads to a fall in employment. As a result, workers lose jobs during the period of depression.

D. Structural Unemployment:

1. Drastic changes in the economic structure of a country lead to structural unemployment. These changes may affect either the supply of or demand for a factor of production.
2. Structural changes in the economy are caused by changes in government policies, shortage of capital, shifting of the industry from one region to another, etc.
3. Structural unemployment is a long-term phenomenon. It takes place because of a mismatch between the skills of workers and the jobs that are actually available. '
4. For example, the introduction of computerized typing has caused unemployment among manual typists.