Many workers have lost their jobs due to the installation of computer...
Unemployment
Unemployment occurs when a person who is actively searching for employment is unable to find work.
Unemployment is often used as a measure of the health of the economy.
The most frequent measure of unemployment is the unemployment rate, which is the number of unemployed people divided by the number of people in the labour force.
Key-Points
Types of Unemployment in India:
1. Structural Unemployment:
- It is a category of unemployment arising from the mismatch between the jobs available in the market and the skills of the available workers in the market.
- Many people in India do not get a job due to a lack of requisite skills and due to the poor education level, it becomes difficult to train them.
2. Cyclical Unemployment:
- It is a result of the business cycle, where unemployment rises during recessions and declines with economic growth.
- Cyclical unemployment figures in India are negligible. It is a phenomenon that is mostly found in capitalist economies.
3. Frictional Unemployment:
- The Frictional Unemployment also called Search Unemployment refers to the time lag between the jobs when an individual is searching for a new job or is switching between the jobs.
- In other words, an employee requires time for searching for a new job or shifting from the existing to a new job, this inevitable time delay causes frictional unemployment.
- It is often considered as voluntary unemployment because it is not caused due to the shortage of jobs, but in fact, the workers themselves quit their jobs in search of better opportunities.
4. Vulnerable Employment:
- This means, people, working informally, without proper job contracts and thus sans any legal protection.
- These persons are deemed ‘unemployed’ since records of their work are never maintained.
- It is one of the main types of unemployment in India.
- Therefore, from the above explanation, Many workers have lost their jobs due to the installation of computers which they do not know how to operate. This has caused Structural Unemployment.
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Many workers have lost their jobs due to the installation of computer...
Explanation:
Structural unemployment refers to the type of unemployment that occurs due to changes in the structure of the economy, such as technological advancements, changes in consumer demand, or shifts in production methods. In this case, the installation of computers that workers do not know how to operate has resulted in job losses. Here's a detailed explanation of why structural unemployment is the correct answer:
1. Definition of Structural Unemployment:
- Structural unemployment occurs when the skills and qualifications of workers do not match the requirements of available jobs.
- It arises due to long-term changes in the economy, such as technological advancements, shifts in consumer preferences, or changes in production methods.
2. Installation of Computers:
- The installation of computers in the workplace indicates a technological advancement.
- Computers can automate various tasks and increase productivity, leading to a potential reduction in the need for certain types of jobs.
3. Lack of Knowledge and Skills:
- The workers who have lost their jobs due to the installation of computers do not know how to operate them.
- This lack of knowledge and skills makes them unable to meet the requirements of the newly created jobs that involve operating computers.
4. Mismatch between Skills and Job Requirements:
- The workers' lack of knowledge and skills in operating computers creates a mismatch between their skills and the job requirements.
- As a result, they become structurally unemployed because they are unable to find suitable employment in the changing economic structure.
5. Impact of Structural Unemployment:
- Structural unemployment can have long-lasting effects on the economy and individuals.
- It can lead to a decrease in overall employment levels, lower wages for affected workers, and reduced economic growth.
- Retraining programs and educational initiatives may be necessary to help these workers acquire the skills needed for new job opportunities.
Therefore, the installation of computers, which workers do not know how to operate, resulting in job losses, is an example of structural unemployment.
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