Homework

1. Submitted By
Miss. Shaikh Uzma Usman
Master Of Commerce (part – I)
(2022-2023)
Under the Guidance of
Asst.PROF. DIKSHA JADHAV
HOD of MCOM Department
N,E,F’S,
Dr. Babasaheb Ambedkar College Of Arts, Science & Commerce,self finance & Post Graduation
(Accredited “B” Grade By Nacc) P. L. Lokhande Marg Chembur Rly Station Chembur (W). Mumbai
-400 089
EFFECTS OF UNEMPLOYMENT IN
ECONOMY

2. EFFECTS OF
UNEMPLOYMENT
ON ECONOMY

3. UNEMPLOYMENT
Unemployment refers to a situation
in which the workers who are
capable of working and willing to
work do not get employment.

4. Types of unemployment
⚫Frictional unemployment
⚫Structural
unemployment
⚫Cyclical or
Keynesian
unemployment
⚫Seasonal unemployment

5. Causes of unemployment
⚫High Population growth.
⚫Absence of employment opportunities.
⚫Seasonal Employment.
⚫Joint Family System.
⚫Increasing turnout of students from Indian
Universities.
⚫Slow Developing of Industries.
⚫Insufficient Rate of Economic Progress.

6. Costs of unemployment
⚫Individual :Unemployed individuals are unable to earn
money to meet financial needs. Failure to pay installmentsor
to pay rent may lead to homelessness througheviction.
Unemployment increases chances of malnutrition, illness,
mental stress, and loss of self- esteem, leading todepression.
⚫Society: An economywith high unemployment
is not using all of the resources, i.e. labor, available to it. Since
it is operating below its productioncapability, itcould have
higheroutput if more peopleare usefully employed.
However, there is a difference between economic efficiency and
unemployment: if the frictionally unemployed accepted the
first job they were offered, theywould be likely to beoperating
at below theirskill level, reducing theeconomy'sefficiency.

7. Measurement
⚫Economists typically focus on the unemployment rate.
The unemploymentrate is expressed as a percentage, and
iscalculated as follows:
Unemployment rate=unemployed
worker/total labor force*1oo
As defined by the International labor organization,
"unemployed workers" are thosewhoarecurrently not
working but are willing and are able to work for pay,
currently available to work, and actively searching for
work

8. Solutions
⚫A Change in the patternof investment
⚫Encouragement tosmall enterprisesasagainst big
enterprises
⚫Problemof Choiceof technique
⚫Encouragementof New Growth Centers in Small
Townsand Rural Areas
⚫Subsidieson the Basisof Employment
⚫Reorientationof Educational Policy

9. THANK
YOU