Question

Which of the pairs given above is/are correctly matched?
Type of Unemployment : Example

A Structural Unemployment : Unemployment in cycle industry because people are buying more cars Correct Answer Incorrect Answer
B Cyclical Unemployment : Unemployment due to slowdown in economy Correct Answer Incorrect Answer
C Frictional Unemployment : A person leaving his job to prepare for civil services Correct Answer Incorrect Answer
D All of the Above Correct Answer Incorrect Answer

Solution

· Structural Unemployment: This kind of unemployment happens when the structure of an industry changes. For example, as the country is tending to move from use of bicycles to motorbikes and cars, the demand for labour in the cycle industry has continuously fallen in the country. Changes in technology and changes in tastes are two big reasons for the occurring of structural unemployment in the economy, an unemployed auto worker because people are buying fewer cars etc.
· Cyclical unemployment: This kind of unemployment occurs when all those who want to work cannot be employed because there is not enough demand in the market for their work.
· Frictional Unemployment: This kind of unemployment occurs when a person leaves/loses a job and starts looking for another one. This search for a job may take a considerable amount of time resulting in frictional unemployment.
· Seasonal Unemployment: This kind of unemployment is expected to occur at certain parts of the year.

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