Types of Unemployment Based on Causes and Characteristics, What Are They?

Kapanlagi.com - Unemployment is a condition where someone is not working at all, actively seeking work, or someone who is trying to find a suitable job. This condition is avoided by many people because everyone wants a job to fulfill their living needs. Generally, unemployment is caused by the lack of job opportunities compared to the number of job seekers in a certain area or country.

In addition, there are several other factors that cause unemployment such as lack of skills among job seekers, layoffs, lack of education, technological advancements, and high expectations for workers. Speaking of unemployment, did you know that the term unemployment itself can be categorized differently based on its causes and characteristics?

The types of unemployment based on its causes are divided into structural unemployment, technological unemployment, and cyclical unemployment. Meanwhile, unemployment based on its characteristics is divided into disguised unemployment, open unemployment, and seasonal unemployment. For more details, check out the following explanation of the types of unemployment.

1. Structural Unemployment

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The first type of unemployment based on its cause is structural unemployment. This unemployment occurs when a company's growing industry experiences a decline. This decline will cause production activities in the industry to decrease, and some workers are forced to be laid off and become unemployed. People who are unemployed due to this situation are called structural unemployment.

Usually, the causes of this decline are technological advancements, high expenditure costs that make it unable to compete, and a significant decrease in industrial production exports due to tough competition from other countries.

For example, the transition from the plantation sector to the industrial sector. Someone who works in the industrial sector will find it difficult to work because they are accustomed to working in the plantation sector.

2. Technological Unemployment

The second type of unemployment based on its cause is technological unemployment. Technological unemployment is a fairly common occurrence in the current era. This unemployment is caused by the replacement of human labor by machines and chemicals. For example, machines have reduced the need for labor to create holes, cut grass, and clean areas.

Basically, unemployment caused by the use of machines and other technological advancements is called technological unemployment. For instance, many entrepreneurs have started replacing workers with robots or automated systems. That's why there is a lot of technological unemployment. It is advisable that you continue to develop skills and education to match the needs of the market.

3. Cyclical Unemployment

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The third type of unemployment based on its cause is cyclical unemployment. This type of unemployment is caused by a reduction in labor force due to business cycles or economic fluctuations such as recessions. When the economic conditions worsen due to a decrease in consumer demand for goods and services, production decreases and fewer workers are needed.

This forces businesses to reduce their workforce in order to cut costs. In such conditions, the number of unemployed workers can exceed the number of job vacancies in the labor market. Therefore, cyclical unemployment can occur.

4. Half Unemployment

If we have discussed the types of unemployment based on its causes, this time we will discuss the types of unemployment based on its characteristics, the first of which is half unemployment. This type of unemployment occurs because there is labor force that works suboptimally. Usually, this type of unemployment has a few working hours, so the income they earn is also insufficient.

5. Hidden Unemployment

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The second type of unemployment based on its characteristics is hidden unemployment. This type of unemployment refers to someone who already has a job but their productivity level is low due to various reasons. An example of hidden unemployment is someone with a degree in health sciences working in a bank instead of working as a medical professional in a hospital.

6. Open Unemployment

The third type of unemployment based on its characteristics is open unemployment. This type of unemployment often occurs, especially in the homeland. This type of unemployment occurs when someone is not working at all and is actively seeking employment. An example of open unemployment is a law graduate who has not yet found a job because there are few job opportunities that match their qualifications.

7. Seasonal Unemployment

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The fourth type of unemployment based on its characteristics is cyclical unemployment. This type of unemployment is often found in the agricultural and fisheries sectors. For example, during the rainy season, rubber tappers and fishermen are unable to work due to weather conditions, forcing them to be unemployed. Furthermore, farmers who cannot plant crops due to drought also experience seasonal unemployment. This is what causes them to become seasonal unemployed.

Those are some types of unemployment based on their causes and characteristics. Hopefully, this will increase your knowledge. Hopefully, it will be beneficial.

(kpl/dtm)