Types of Employment
Full-time employment,2. Part-time employment,3. Apprenticeship,4. Traineeship,5. Internship,6. Casual employment,7. Employment on commission,8. Contract employment,9. Probation,10. Seasonal employment,11. Leased employment,12. Contingent employment
What is the Measurement of Unemployment in India?
National Sample Survey Office (NSSO), an organisation under the Ministry of Statistics and Programme Implementation (MoSPI) measure unemployment in India on the following approaches:
Usual Status Approach: This approach estimates only those persons as unemployed who had no gainful work for a major time during the 365 days preceding the date of survey.
Weekly Status Approach: This approach records only those persons as unemployed who did not have gainful work even for an hour on any day of the week preceding the date of the survey.
Daily Status Approach: Under this approach, the unemployment status of a person is measured for each day in a reference week. A person who has no gainful work even for 1 hour in a day is described as unemployed for that day.
Different Types of Unemployment in India?
Disguised Unemployment:
It is a phenomenon wherein more people are employed than actually needed.
It is primarily traced in the agricultural and the unorganised sectors of India.
Seasonal Unemployment:
It is unemployment that occurs during certain seasons of the year.
Agricultural labourers in India rarely have work throughout the year.
Structural Unemployment:
It is a category of unemployment arising from the mismatch between the jobs available in the market and the skills of the available workers in the market.
Many people in India do not get job due to lack of requisite skills and due to poor education level, it becomes difficult to train them.
Cyclical Unemployment:
It is a result of the business cycle, where unemployment rises during recessions and declines with economic growth.
Cyclical unemployment figures in India are negligible. It is a phenomenon that is mostly found in capitalist economies.
Technological Unemployment:
It is a loss of jobs due to changes in technology.
Frictional Unemployment:
Frictional Unemployment, also called Search Unemployment, refers to the time lag between the jobs when an individual is searching for a new job or is switching between the jobs.
In other words, an employee requires time for searching for a new job or shifting from the existing to a new job, this inevitable time delay causes frictional unemployment. It is often considered voluntary unemployment because it is not caused due to the shortage of jobs, but in fact, the workers themselves quit their jobs in search of better opportunities.
Vulnerable Employment:
This means, people working informally, without proper job contracts and thus sans any legal protection. These people are deemed ‘unemployed’ since records of their work are never maintained.
It is one of the main types of unemployment in India.
What are Some of the Key Terms?
Unemployment Trap: It is a situation where unemployment benefits discourage the unemployed to go to work. People find the opportunity cost of going to work too high when one can simply enjoy the benefits by doing nothing.
Harmonised Unemployment Rates: It defines the unemployed as people of working age who are without work, are available for work, and have taken specific steps to find work.
The uniform application of this definition results in estimates of unemployment rates that are more internationally comparable than estimates based on national definitions of unemployment.
This indicator is measured in numbers of unemployed people as a percentage of the labour force and it is seasonally adjusted. The labour force is defined as the total number of unemployed people plus those in civilian employment.
The formula for the employment rate calculator is the ratio of employed citizens to the total population in the country.
The factors affecting the employment rate are skills shortage, aggregate demand, total job growth, wage level, and institutions.
A direct relationship exists between elastic countries and employment rates. Besides, productivity can also affect the level of employment.
The employment rate is an economic metric that allows a country to measure its labor force participation with the population. Per the International Labor Organization, someone is deemed employed if they have had at least one hour of “gainful” work in the previous week.
Number of people employed (working)/Total population] [Unemployed people/ Total population] (Employed People + Unemployed People) / Working Age Non-Institutionalized Population
The usually employed are considered both according to their principal and subsidiary status. The methodology for assigning the three statuses is different and therefore their interpretation is also bound to be different.
Usual Status Employed (Unemployed)
These are persons who are ‘usually’ employed or ‘usually’ unemployed for a major time during the reference period. The usually employed therefore is an indicator of the persons who have a stable attachment with some economic activity though they may not be pursuing the same at any given time. The persons reporting unemployment in the usual status would be those who are chronically unemployed. In the Indian situation with predominantly self-employed and owner operated household enterprises and large-scale employment in the agricultural sector, such numbers are not expected to change within short period