INDUSTRIAL UNEMPLOYMENT

Описание: It refers to
unemployment in the industrial sector.
The unemployed workers may be skilled
or unskilled. This is generally a form
of open unemployment. Slow industrial
growth, rapid growth of population, lack
of training facilities, low adaptability to
modern technology, inconvenient location of
industries, low mobility of labour etc. are the
main reasons for industrial unemployment.
Following are the types of Industrial
unemployment :

i) Technological Unemployment :
Technological unemployment arises
because of changes in technology. Modern
technology is capital-intensive and requires
less labourers. When new techniques are
introduced in the industrial sector, existing
workers are displaced from their jobs due to
lack of proper training, e.g. computerisation,
introduction of robotic technology etc.
ii) Frictional Unemployment : Frictional
unemployment is caused due to breakdown
of machinery, power failure, shortage of raw
materials, strikes by workers etc. Frictional
unemployment is temporary by nature.

iii) Cyclical Unemployment : Cyclical
unemployment is the result of cyclical
fluctuations in the level of business activity.
The economy passes through phases of
prosperity and depression. During the
period of depression, effective demand
falls which leads to a fall in the prices
and profits earned by the producers. As a
result, there is a corresponding decline in
investment and production of commodities.
A fall in production leads to a fall in
employment. As a result, workers are thrown
out of jobs during the period of depression.

iv) Structural Unemployment : This type of
unemployment arises due to drastic changes
in the economic structure of a country. These
changes may affect either the supply of or
demand for a factor of production. Structural
changes in the economy are caused by
changes in government policies, shortage of
capital, shifting of industry from one region
to another etc. Structural unemployment
is a long term phenomenon. Structural
unemployment takes place because of a
mismatch between the skills of workers
and the jobs that are actually available,
e.g. i) horse carts had been replaced by auto
rickshaws. ii) introduction of computerised
typing has caused unemployment among
manual typists.