EMPLOYMENT AND UNEMPLOYMENT

• Employment is a state of being engaged or involved in an economically gainful activity. One may be self employed of offering services  to others e.g to government organizations or private companies for wages or a salary. Self employment refers to being in business by oneself or with others to earn income. In Kenya, majority are in self employment since wage employment has been declining.
• Full employment is a situation that occurs when all those who are capable and willing to work are employed, except for those who are temporarily out of work.
• Unemployment refers to an involuntary idleness of a person willing to work at the existing rates of pay but unable to find work.

TYPES OF UNEMPLOYMENT
1) Cyclical unemployment. This occurs due to relatively low general demand for goods and services. This is because a business cycle consists of alternating periods of booms and depression. During boom period, production of gods is high hence there is employment. on the other hand, during depression period, production is low, demand for goods is also low due to widespread unemployment.
2) Structural unemployment. This is caused by changes in production methods, change in technology and changes in demand for goods and services.
3) Frictional unemployment. It is caused by industrial friction. This occurs when people are unable to secure jobs due to barriers which hinder them from getting jobs such as ignorance of job opportunities, immobility of labour, shortage of raw materials , breakdown of machinery or when people lose jobs and go looking for new ones.
4) Seasonal unemployment. This occurs due to relatively low demand for labour in certain activities in particular industries at certain times of the year. E.g climatic changes in agricultural sector, changes in fashion in the building and construction industry and tourism industry etc.
5) Involuntary unemployment/open unemployment. This results from lack of jobs. For example people willing to work at the prevailing wages but work is not available.
6) Real wage/Voluntary unemployment. This occurs when job seekers are not willing take up jobs at the prevailing wage rates.
7) Disguised/Hidden unemployment.This occurs when the number of people employed exceeds the number which is required for the job. The workers' capabilities are not fully utilized. People appear to be fully occupied when in actual fact some of them are as good as unemployed. E.g Due to pressure of population on land, many people may be working on the same farm without considering their output.
8) Residual unemployment. This affects people who are physically & mentally challenged because they are not capable of holding down a permanent job.
9) Erratic /Casual unemployment. This affects certain sectors of the economy like construction where demands for labour is erratic and not regular, hence they have to employ labour on casual basis.