In this lecture we are going to discuss, What is Involuntary Unemployment its meaning definition in macro economics class 12.
This topic is concerned with Determination of Income and employment unit of Macro economics class 12 CBSE Board.
What is the meaning of Involuntary Unemployment
labour force of a country consists of those individual who are mentally and physically fit and willing to work.
Hence, there are two characteristics of labour force of a country.
- Physically and mentally able
- willing to work if a suitable job is offered.
But what about those who are physically and mentally fit and also willing to work but are unable to find some work. Such labor force is termed as involuntary unemployment.
Definition of Involuntary Unemployment
“Involuntary Unemployment means that part of the labor force of the country which is able to work and prefers to work, but it is out of work, though no fault or wish of its own.”
“Involuntary Unemployment refers to the situation when some people are not getting work, even when they are willing to work at existing wage rate.”
“Involuntary unemployment 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.”
Reasons of Involuntary Unemployment
It is arises As AD in the economy is not enough to induce fuller utilization of the available resources. In other words planned output is lower than potential (full employment) output.