Question

Discuss unemployment and how it is measured. Please give a detailed explanation.

Answer 1

A person is continuously searching for a job but he is not able to find a job, suitable for his educational qualification there occur unempoyment .In a economic prespective unemployment is caused due to the less demand of labour force from an employer side and more supply of labour from the worker side.As a result of unemployment which mainly affect the economic growth of a country as well as which affect the health,life and community of citizens and some scenario which causes high poverty in a nation.

There are mainly two types of unemployment they are voluntary and involuntary unemployment.The voluntary unemployment means when labour force left their job willigly or purposefully for finding out other suitable employment.On the otherhand involuntary unemployment means when a labour force is laid off from a job due to any globalization,recession in economy or due to inflation crisis and as a result they have to find out another suitable job.

Unemployment caused by economic recession which is called cyclical and unemployment caused by certain factors like government policies and regulations imposed on business enterprises which is called natural type of unemployment.

Unemployment is measured mainly for the purpose of determining unemployment rate in a country .So unemployment rate is calculated by dividing the total number of unemployed persons in a country by the tottal number of persons employed in the labour force.

Unemployment rate =total number of unemployed person/total number of employed person in the labour force.