UPSC Civil Services Model Paper 7

Unemployment occurs when a person who is actively searching for employment is unable to find work.
It is often used as a measure of the health of the economy.
Types of Unemployment
Disguised Unemployment:
The phenomenon when more people are employed than actually needed. Hence statement 1 is correct.
Example :
agricultural and the unorganized sectors of India.
Seasonal Unemployment:
Unemployment occurs during certain seasons of the year.
Example:
Agricultural labourers.
Structural Unemployment:
Unemployment arising from the mismatch between the jobs and the skills of the available workers in the market.
Hence statement 2 is correct.
Many people do not get jobs due to a lack of requisite skills and due to the poor educational level.
Cyclical Unemployment:
It is the result of the business cycle.
Hence statement 3 is not correct.
Unemployment rises during recessions and declines with economic growth.
Technological Unemployment:
It is the loss of jobs due to changes in technology .
Frictional Unemployment:
Frictional Unemployment is also known as Search Unemployment.
Hence statement 4 is not correct.
It refers to the time lag between the jobs when an individual is searching for a new job or is switching between the jobs .
Vulnerable Employment:
This means people are working informally without proper job contracts.
These persons are deemed ‘unemployed’ since records of their work are never maintained.