Sara Yasmeen

BCSF08M025

What Is Unemployment?
Unemployment is a situation in which some labor

resources are not being used in the production of goods and services.

Types of Unemployment:
1. Classical Unemployment:
2. Cyclic Or Keynesian Unemployment: 3. Structural Unemployment:

4. Frictional Unemployment:
5. Seasonal Unemployment: 6. Technological Unemployment: 7. Hard-Core Unemployment: 8. Hidden Unemployment:

Classical Unemployment:
Classical or real-wage unemployment occurs when real

wages for a job are set above the market-clearing level, causing the number of job-seekers to exceed the number of vacancies.

Cyclic Or Keynesian Unemployment

Cyclical or Keynesian unemployment, also known as

deficient-demand unemployment, occurs when there is not enough aggregate demand in the economy to provide jobs for everyone who wants to work.

Structural Unemployment:
Structural Unemployment occurs when a labor market is unable to provide jobs for everyone who wants one because there is a mismatch between the skills of the unemployed workers and the skills needed for the available jobs.

Frictional Unemployment:
Frictional unemployment is the time period between jobs when a worker is searching for, or transitioning from one job to another. It is sometimes called search unemployment and can be voluntary based on the circumstances of the unemployed individual.

Seasonal Unemployment:
Seasonal unemployment is unemployment due to

changes in the season such as a lack of demand for department store Santa Clauses in January.

Seasonal unemployment is a form of structural

unemployment, as the structure of the economy changes from month to month.

Technological Unemployment:
Unemployment caused by technological advances.

This includes machines and software substituting for human labor, advances in efficiency negating the need for friction-based jobs, and increased data availability undermining professions that rely on information asymmetry.

 Hard-Core Unemployment:

Some of the people will not even be capable

of holding permanent job by virtue of some physical or mental disability.

Hidden Unemployment:
Hidden,

or covered, unemployment is the unemployment of potential workers that is not reflected in official unemployment statistics, due to the way the statistics are collected.

Those who have given up looking for work (and sometimes those who are on Government

"retraining" programs) are not officially counted among the unemployed, even though they are not employed.

Measurement:
Unemployment Rate = UNEMPLOYED WORKERS TOTAL LABOUR FORCE

"Unemployed Workers" are those who are currently not working but are willing and able to work for pay, currently available to work, and have actively searched for work

Unemployment in Pakistan (Statistics)

Unemployment in Pakistan
Graphical Representation
16.00% 14.00% 12.00% 10.00% 8.00% 6.00%

4.00%
2.00% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010