Types of Industrial unemployment:
(i) Technological unemployment:
Due to the introduction of new machines or new technology, when some workers are removed from their jobs due to lack of proper training. E.g. computerization, the introduction of robotic technology, etc.
(ii) Frictional unemployment:
When due to the breakdown of machines, shortage of raw materials, strikes, power failure, etc. some workers are removed from the jobs, there is said to be frictional unemployment. This is temporary in nature.
(iii) Cyclical unemployment:
During an economic recession, there is a slowdown of economic activities due to a fall in overall demand. Therefore, factory owners remove some workers from their jobs to cut down the cost such unemployment caused due to depression (trade cycle) is called cyclical unemployment.
(iv) Structural unemployment:
It takes place due to structural changes in the economy i.e when due to change in the complete business set up, some workers are removed from their jobs, there is said to be structural unemployment. E.g. introduction of power looms instead of handlooms. It is longterm in nature.
