Question
Write short notes on the following:
Concept of involuntary unemployment.
Solution
Concept of involuntary unemployment. An involuntary unemployment means a situation in which all able persons who are willing to work at the prevailing wage rate do not get work. Such people are (i) physically and mentally fit to work and are also (ii) willing to work at the going wage rate but are out of job. Thus their unemployment is involuntary (i.e., not voluntary) because they are rendered unemployed against their wishes. This type of unemployment occurs when wages are rigid and supply of labour is greater than the demand for labour. Then there will be involuntary unemployment to the extent of excess supply of labour.
