If unemployment continues to be a long-term feature of a country, then it is called ___________ unemployment.
Show answer & explanation
Correct answer: D
Explanation
The correct answear is option D i.e chronic.
The Chronic Unemployment means prolonged unemployment in the economy. It is caused due to the long-term unemployment persisting in the economy.
Unemployment in India is a chronic problem due to following reasons :-
- Rapid Population Growth- Increased population especially in rural areas is one of the major cause of unemployment.
- Inadequate level of economic development on account of vicious circle of poverty.
- Defetive Education system.
- When individuals are out of work Depreciation of human capital increases as time passes, meaning that , the potential wages the unemployed can earn on finding a new job and even the chances of finding a new job decrease,as they are out of work from a longer.
Additional detail.
| Structural unemployment | This unemployment arises when there is a mismatch between the worker's skills and availability of jobs in the market. |
| Frictional unemployment | Is a temporary situation when workers go unemployed to find a new job after quitting the previous one. |
| Casual unemployment | when the worker is employed on a day-to-day basis for a contractual job and have to leave it once the contract terminates. |