Question
Download Solution PDFWhat type of unemployment will be generated by the agricultural sector in case when it employs additional labourers only for some time of the year like the harvest season?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is Seasonal unemployment.Key Points
- The scenario described in the question is a classic example of seasonal unemployment.
- It occurs when there is a predictable pattern of employment and unemployment in a particular sector or industry due to seasonal changes or fluctuations in demand.
- Agricultural sector is one of the most common industries where seasonal unemployment occurs.
- It is also known as agricultural unemployment, where farmers and other agricultural workers are employed only during the specific seasons like harvesting, sowing, plowing, etc.
Additional Information
- Disguised unemployment is a situation where more people are employed in a job than actually required.
- It is often seen in the agricultural sector where a large number of people work on a small piece of land, leading to low productivity and low wages.
- Cyclical unemployment occurs due to the fluctuations in the business cycle.
- It is caused by changes in the economic conditions, such as recession, depression, or boom.
- Structural unemployment occurs due to the changes in the structure of the economy.
- It happens when there is a mismatch between the skills of the workers and the requirements of the jobs.
Last updated on Jun 22, 2025
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