(а) There are many types of unemployment. We have unemployment in rural and urban areas, though the nature of unemployment differs in both areas. In case of rural areas there is seasonal and disguised unemployment. Urban areas have educated unemployment.
Seasonal unemployment means when people find jobs during some months and during remaining months they are unemployed. In the agriculture sector people remain employed during the sowing and harvesting season but after this for nearly 5 to 7 months they remain unemployed.
Disguised unemployment means more people are engaged in a particular work than required. Even if some men are relieved from work the total productivity will not decline.
In case of urban areas the rapidly increasing number of schools and colleges lead to educated unemployment as the job opportunities have not increased at the same rate.
(b) Unemployment leads to the wastage of manpower resources. Unemployed people become a liability for society rather than an asset. Unemployment increases poverty. There is a feeling of hopelessness and despair among the youth as they are unable to financially support their family. The dependency of the unemployed on the working population adversely affects the quality of life of a society. There is a general decline in its health status and rising withdrawal from the school system. An increase in unemployment is an indicator of a weak economy. So unemployment is a serious problem because unemployed people have become a liability on society.
