Difference Between Seasonal And Disguised UnemploymentSeasonal unemployment results in a lack of employment opportunities during specific periods, while disguised unemployment happens when more individuals are employed than is necessary. This is the primary distinction between disguised unemployment and seasonal unemployment. What Is Unemployment?A person who actively seeks employment but is unsuccessful in doing so is said to be unemployed. The unemployment rate is an important indicator of the state of the economy and the most commonly utilized metric for assessing unemployment. It is computed by taking the total number of jobless individuals and dividing it by the total number of workers. Understanding UnemploymentSince employment indicates whether or not workers can find gainful employment and contribute to the economy's productive output, unemployment is an important economic statistic. There will be less overall economic production if there are more unemployed workers. Those who quit the workforce for retirement, further education, or disability are not included in the definition of unemployed. Seasonal UnemploymentSeasonal unemployment is the term used to describe the fluctuations in employment levels in some industries or occupations, such as construction, farming, and tourism, that are impacted by seasonal shifts. There is typically a high demand for labor in these businesses at specific seasons of the year and a low demand during others. Therefore, during the off-season, employees in these businesses could go through spells of unemployment. The Advantages of Seasonal Unemployment
Disadvantages of Seasonal Unemployment
How Does Seasonal Unemployment Work?The method by which seasonal unemployment works is by making sure that, at any given time of year, the quantity of jobs available matches the need for workers within a business. This implies that during some seasons, a business may require more workers than during others, which could lead to seasonal unemployment when the more profitable season concludes. Those who hold jobs that are directly related to a particular season or event are let go during a period of seasonal unemployment and must look for other employment alternatives. Some people choose to switch to a new seasonal job every time the season changes in an attempt to continue working during the seasonal slowdown and secure employment again as soon as possible. Examples Of Seasonal UnemploymentConsider these examples of seasonal unemployment: 1. Agriculture ExampleDuring the summer, while Jared is home from college, he works for a local farmer. Watering the fields, cleaning and gathering crops, and getting ready to carry orders to the farmer's market are all part of his job. Until the final week of August, Jared is also in charge of the farmer's market booth. Jared anticipates being unemployed for a while after the summer since the farm only produces crops that flourish in the summer. Jared may get ready to start looking for new employment closer to his college in the first week of September because he knows that the farmer's market finishes during the last week of August. 2. Holiday ExampleAs a professional actress, Lucia gets hired to perform over the holidays at a place named Winter Wonderland. As part of her duties, she must develop a character with a holiday-related past, talk with visitors while strolling through the park, and take pictures and films of those who want them. Lucia learned during her job interview that the Winter Wonderland attraction is typically open from the last week of November through the first week of January. Lucia starts looking for her next acting project in December in anticipation of her first week of unemployment once Winter Wonderland ends, which is known as seasonal unemployment. 3. Theme Park ExampleWanda spends her summers working at Thrill City, a theme park with roller coasters, carnival attractions, a range of dining options, and character interactions with live entertainers. One of the park's water rides is Wanda's roller coaster, which propels riders over water rapids to cool off during the hot summer months. Conversely, Thrill City closes its water rides in the last week of August and closes the park during the last week of October. Wanda can find a new job at Thrill City after her ride closes in August, but she may experience seasonal unemployment when the park closes in October. In order to prepare for the day when her seasonal job ends and she may resume working, Wanda can start looking for new employment in October. Causes of Seasonal Unemployment1. Lack of DemandThere is a peak season for seasonal work when a greater labor force is required. In many industries, this is the time of greatest demand and earning potential. As a result, workers who are laid off in the off-season have to find new work. 2. Seasonality in Particular IndustriesSeasonal changes can result in unemployment. Certain seasons of the year are when many goods are most in demand. Manufacturers of umbrellas, for instance, need to find another source of income once the rainy season ends. Due to this, seasonal unemployment also affects farmers and holiday-related businesses like firecrackers and Christmas tree vendors. 3. Lack of Multiple CroppingDifferent crops are grown by farmers at different seasons of the year. A farmer can use his property to produce and make money all year long if he wants to undertake multiple cropping. On the other hand, managing a single crop may result in temporary joblessness. 4. Insufficient Cottage IndustriesCrafts such as ceramics, candles, weaving, soap, and so forth are in demand year-round and draw in rural residents. Because there are few other sources of income in rural areas, the absence of cottage industries may cause contractual farmers and their families to experience seasonal unemployment. 5. Agriculture Is Not CommercializedEven with a seasonal crop, commercialization of agriculture enables a farmer to earn from his harvest all year long. When the season ends, he still doesn't have a job without it. Disguised UnemploymentThe term "disguised unemployment" describes an economic situation in which there is a labor surplus, but not all of the workers are fully employed. This may happen if workers are unable to find positions that utilize their skills or if the economy needs to receive the investments necessary to generate new jobs. A decline in productivity and a drop in the standard of life for those who are unemployed or underemployed might result from disguised unemployment. Understanding Disguised UnemploymentCovert unemployment is common in developed nations with sizable labor force surpluses caused by their huge populations. It can be identified by its low productivity and tendency to follow agricultural and informal labor markets, which have high labor demand. Any fraction of the unemployed population at maximal potential might be concealed or secret unemployment. Still, official unemployment statistics frequently do not include it in the national economy. This can include people who work well below their capabilities, people whose jobs contribute little to total output, or any group that isn't looking for work right now but is capable of producing valuable work. Advantages of Disguised Unemployment
Disadvantages Of Disguised Unemployment
Causes Of Disguised Unemployment:
Examples Of Disguised Unemployment
Similarities Between Seasonal Unemployment and Disguised Unemployment
Differences Between Seasonal And Disguised Unemployment
ConclusionUnemployment wastes the nation's human resources and increases the economic load, converting assets into liabilities. "Disguised unemployment" is the term used to describe the situation where an individual does not contribute anything to total production. Conversely, "seasonal unemployment" happens during a particular time of year. Disguised and seasonal unemployment share some similarities, but they are not the same thing. A shortage of demand and a decline in inventory are the reasons for the differences. A country's firms can attempt to reduce expenses, which could lead to disguised unemployment. As a result, companies are thinking of cutting staff to ensure the quality and quantity of their product are maintained. Due to this kind of unemployment, people are forced to work less than they can. Conversely, seasonal unemployment transpires during periods of excess labor supply, which translates to elevated rates of unemployment. When additional staff is not required to handle business activities, employees in this situation are either laid off or placed on part-time status for a while. Next TopicDifference Between |