UNEMPLOYMENT

INVOLUNTARY UNEMPLOYMENT

Definition: It refers to an unemployment in which all those people, who are willing and able to work at the existing wage rate, do not get work.

It must be noted that only involuntary unemployment is considered while estimating the total unemployment in an economy.

VOLUNTARY UNEMPLOYMENT

Voluntary unemployment refers to a situation when a person is unemployed because he/she is not willing to work at the existing wage rate.

Voluntary unemployment is not counted while estimating the size of unemployment.