In simple language we can say that unemployment means condition of those people who can work but do not get work.
Unemployment does not only mean unemployment of labour. It can also refer to unemployment of other factors of production such as land, machinery, etc.
Unutilized machinary, land, etc. are also called unemployment.
Definition:
- According to Pigou, “A person willing to work does not find work” is called unemployment.
- Another definition of unemployment is “When a person is ready and capable of working at current wage rate but does not get work”.
Explanation:
- As per this definition, ‘at current wage rate’, if ‘a person is eager and ready to do the work but is deprived of work’ then it is said to be ‘unwilling unemployment’ or ‘compulsory unemployment’.
- Against this, if a person is ‘not willing and ready to work and hence not getting work’ then he is not said to be unemployed. This type of person is said to be ‘voluntary unemployed’.
- According to this definition, children, elderly people, weak people and people who do not want to work, are not considered part of active work force but still cannot be said unemployed. This voluntary unemployment is not a problem.
- We study unemployment in terms of supply of active work force only. Active work force supply includes people in age group of 15 to 64 years.
An unemployed person is economically dependent on others. Hence, he cannot live in society with dignity. Hence, the problem of unemployment may not only restrict to an economic problem but may also lead to social, ethical and political problems.
