Question

Explain meaning of full unemployment.

Answer 1

Open (Full) unemployment:

• People who are ready to work at current wage rate and also possess necessary qualifications but do not get any job are said to be “fully unemployed or openly unemployed’.
• Generally, full unemployment is seen in countries where supply of labour and urbanization is quite fast.
  The countries in which both the labour supply and urbanization increase at a faster rate experience high rate of full unemployment.
• This type of unemployment is seen more in towns than in villages. Majority of openly unemployed people are those who migrate from villages to cities in search of job.
• People suffering from open unemployment can be either educated or less trained/skilled persons.
• Although people with open unemployment do not get work such people do consume goods and also spend money. Hence they become burden and reason for low productivity.
• Open unemployment can be seen more among people in the age group of 15 to 25 years.
• It is difficult to calculate exact number of openly unemployed people, however there are three methods to do so.

They are:

1. Obtaining number of people registered in employment exchange center,
2. Through sample survey of labour supply and
3. Through Census.