Types of Unemployment


Open Unemployment:

Open joblessness is a condition in which individuals have no work to do. They can work and also are ready to work, yet there is no benefit for them. They are found partly in villages, but very mostly in cities. A lot of them come from towns in search of work; several originate in cities themselves. Such work can be seen and also counted in regards to the number of such persons. Thus it is called open unemployment.

Structural Unemployment

It takes place due to structural adjustments in the economic climate. These changes can be because of change in technology (from labor-intensive strategy to capital extensive modern technology) or change in the pattern of need. In an establishing nation like India, structural unemployment exists both in the rural as well as in city areas.

Frictional Unemployment:

It takes place when an employee is moving from one task to the other. Throughout the mobility period, he may remain jobless for a long time. It is a momentary phenomenon. In other words, Frictional joblessness is the time between jobs when a worker is looking for or transitioning from one task to an additional.

Cyclical Unemployment:

It occurs because of seasonal changes in the economy. Phases of a boom, economic crisis, anxiety, and also recuperation are regular attributes of a capitalist commercial market. In the boom phase, a high level of financial activity causes a high degree of employment whereas economic downturn and depression stages noted with low demand results in more unemployment and during the healing phase joblessness is gradually minimized.


It is a circumstance under which utilized individuals are adding to production less than they are capable of. It can be in terms of time (noticeable under-employment) or type of job (invisible under-employment). Part-time workers come under this group.

Disguised Unemployment:

A disguisedly out of work individual is the one who seems to be used, yet really, he is not. His contribution to the complete output is zero or negligible. When more people have participated in a task than needed, a state of disguised unemployment is produced. It is mostly seen in rural communities.

Seasonal Unemployment:

It happens only throughout seasonal months of the year. In India, it is widespread in the farming market. Disguised unemployment and seasonal unemployment are both the most common kinds of unemployments discovered in our country, particularly in the farm sector.


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