EMPLOYMENT:

        Employment refers to the capacity in which a worker pursues gainful activity during the reference period. According to their status of employment, there are three types of employed workers, self-employed workers, casual wage and regular wage employees.  

Labour force participation rate is defined as the section of working population in the age group of 16-64 in the economy currently employed or seeking employment. People who are still undergoing studies, housewives and persons above the age of 64 are not reckoned in the labour force.it provides an indication of the size of the supply of labour available to engage in the production of goods and services, relative to the population at working age.

Full Employment:

        Full employment is an economic situation in which all available labor resources are being used in the most efficient way possible. Full employment embodies the highest amount of skilled and unskilled labor that can be employed within an economy at any given time.

Under Employment:

        It is a situation where a person is employed in a job, which is not commensurate with his/her qualification, skill set and experience. Under these condition, capabilities of the workers are not utilised to the optimum level.

UNEMPLOYMENT:

        Unemployment refers to a situation, when a person is able and willing to work at the prevailing wage rate but does not get the opportunity to work. the term unemployment is directly related with the concept of labour force, because the people, who are not included in labour force cannot be regarded as unemployed.

        UNEMPLOYMENT RATE The unemployment rate is defined as the number of persons unemployed per 1000 persons in the labour force (which included both the employed and the unemployed).

Types Of Unemployment:

• Cyclical Un Employment:

                This type of Un Employment occurs when all those who want to work cannot get employed because there is not enough demand in the market for their work. It is associated with a general depression in the overall economy. It occurs due to economic cycles of boom and depression.

        During depression demand falls and production goes down which leads to fall in level of employment.

• Frictional Un Employment / Functional Un Employment:

                Frictional unemployment occurs when workers leave their old jobs but haven’t yet found new ones. This is temporary Unemployment and voluntary search for job may take considerable amount of time resulting in frictional Un Employment.

        Frictional unemployment is short-term and a natural part of the job search process. In fact, frictional unemployment is good for the economy, as it allows workers to move to jobs where they can be more productive.

                This type of Un Employment may be high in an economy if people change the job frequently for some reason and also when the economy is not doing so well.

• Structural Un Employment:

        Structural unemployment exists when shifts occur in the economy that creates a mismatch between the skills workers have and the skills needed by employers.

        An example of this is an industry’s replacement of machinery workers with robots. Workers now need to learn how to manage the robots that replaced them. Those that don’t learn need retraining for other jobs or face long-term structural unemployment.

                When structural Unemployment below certain level it implies that the country is not going for technological adaptation, and it is not good for economy.

                Frictional and structural Un Employment to is said to be called Natural rate of Un Employment. These two types of Unemployment’s are unavoidable (or) natural.

Note: Cyclical, Frictional and structural Un Employment are major in industries & Service sectors only.