Unemployment, the condition of one who is capable of working, actively seeking

work, but unable to find any work. It is important to note that to be considered
unemployed a person must be an active member of the labour force and in search of
remunerative work.
Unemployment, as defined by the International Labour
Organization, occurs when people are without jobs and they
have actively looked for work within the past four weeks.
Economists distinguish between various overlapping types of
and theories of unemployment.
Classical unemployment: Occurs when real wages for a job are
set above the market-clearing level, causing the number of job-
seekers to exceed the number of vacancies.
Cyclical or Keynesian unemployment: Occurs when there is not
enough aggregate demand in the economy to provide jobs for
everyone who wants to work
Marxist theory of unemployment:
It is in the very nature of the capitalist mode of production to overwork some workers while
keeping the rest as a reserve army of unemployed paupers.– Marx, Theory of
Surplus Value
Structural unemployment: Structural unemployment occurs when a
labour market is unable to provide jobs for everyone who wants one because there is a
mismatch between the skills of the unemployed workers and the skills needed for the
available jobs.

Frictional unemployment: Frictional unemployment is the time

period between jobs when a worker is searching for, or
transitioning from one job to another.

Hidden Unemployment: Hidden, or covered, unemployment is the

unemployment of potential workers that is not reflected in
official unemployment statistics, due to the way the statistics
are collected.

Long-term unemployment: Unemployment that is lasting

for longer than one year. Unemployment rate =
Unemployed workers/Total labour force

Failure to pay mortgage payments or to pay rent may lead to

homelessness through foreclosure or eviction.
Unemployment increases susceptibility to malnutrition, illness,
mental stress, and loss of self-esteem, leading to
depression.
Another cost for the unemployed is that the combination of
unemployment, lack of financial resources, and social
responsibilities may push unemployed workers to take
jobs that do not fit their skills or allow them to use their
talents.
Unemployment can cause underemployment, and fear of job
loss can spur psychological anxiety.
During a long period of unemployment, workers can lose
their skills, causing a loss of human capital.
High unemployment can encourage xenophobia and
protectionism as workers fear that foreigners are
stealing their jobs.
High unemployment can also cause social problems
such as crime.
High levels of unemployment can be causes of civil
unrest, in some cases leading to revolution
Some Economist argues that it sometimes benefits by causing
inflation when needed.