Question

2.1. What is unemployment and how is it measured? [6 marks]

2.3. List and define the four types of unemployment. [18 marks]

2.4. Name and explain any three policies the government can adopt to tackle unemployment.

Answer 1

1. Unemployment is when a person willing to work is not able to find work. Unemployment rate is measured as the ratio of total number of people actively looking for the job to the total number of population in the labour force.

2.Four types of unemployment are-

Frictional- unemployment during the time a person is searching a job.

Structural- unemployment due to changes in structure of an organisation

Cyclical- unemployment due to changes in business cycle

Seasonal- unemployment during particular off demand seasons.

3. Government can increases spending on education to improve the skills of individuals which would help them find employment.

Increase in fiscal spending . When government increases aggregate demand rises.To cope up with increase in demand firms hire more labour, raising employment.

Attract FDI. FDI increases employment as these investment also results in hiring of labour.