A Business Encyclopedia

Voluntary Unemployment

Definition: The Voluntary Unemployment refers to the situation when the worker deliberately chooses not to work because of a low wage scale or not able to find out the suitable employment for him.

In other words, the voluntary unemployment is when the person decides not to participate in the labor market, not because of the unavailability of jobs, but because of not finding the jobs of his/her choice or is not satisfied with the wage system.

The voluntary unemployment also gets created when the worker is neither willing to work nor searches for a job, as he is satisfied with the amount given by the government in the form of unemployment benefits. High-income tax rates could also be one of the reasons behind a worker not choosing to work.

The lack of job information can lead to the unemployment. Such as first-time job seeker might not have sufficient information about the nature of a job and decides to remain unemployed until the time he gets the desired opportunity. Frictional unemployment is also a form of voluntary unemployment wherein the worker deliberately leaves his job in the search for better job pursuits.

Most of the times the unemployment is involuntary caused due to Socio-economic factors such as aggregate demand, market structure, government intervention, technological advancement, etc. The involuntary unemployment is therefore beyond the worker’s control and unlike voluntary unemployment, it is not explicit to an individual.

Leave a Reply

Your email address will not be published. Required fields are marked *


Related pages

whistle blow meaningrfr definitionrelatively inelastic definitioncpm defineproportionate stratified sampleclassical conditioning theoriesgeocentric staffing policyfmcg defineequity carveoutmanpower planning definitionhow to calculate total asset turnover ratioan explicit costgross profit margin ratio examplemax weber bureaucracy principlesin monopolistic competitiontheory of egoismcore companies meaningtransaction motiveforming storming norming performing and adjourninge retailing wikipediawhat is the definition of autocracytask oriented leadership style definitionpsychological barriers of communicationdefine intrapreneursmanagement by henri fayolrupee volatility meaninglaissez faire leadership characteristicsreward power in managementapproaches to ihrmcharacteristics of monopolistic competition and oligopolydefinition of speculatorsheri fayolsegmentation meaning in marketingdeontological theorieslaissez faire leadersmeaning of morale in hindiformula of capmcardinal measure of utilitywhat is the purpose of business process reengineeringdefinition of scalar chaindefine job vacancydefine forward integrationarbitrageurs definitionrefresher training plansegmentation marketing definitiongeneric and grand strategies in strategic managementmodel black scholesconsumer equilibrium indifference curvegeocentrism definitionexample of laissez faire leadership stylethe laissez faire leadership stylewhat is the meaning of recruitment in hindiindustrial relation in hrwhat is the trait theorydefine rationingguerilla attacksmeaning of percolatedformal or informal communicationwhat is an oligopoly marketwhat is business process reengineering bprdefine administrative management theorydiscounted method of capital budgetingmeaning of investment multiplierefficiency hindi meaning4 types of market structures in economicsdefine quantity demandeddecentralised meaningdefinition of ordinal utilityan ethnocentric staffing policymeaning of internsdefinition for moratoriumcauses of non sampling errorssole proprietor businessesguerrilla war definitionmanagerial grid approachdefinition of revenue deficitdefine delegativeinvestopedia liabilitiesmanagement principles of henri fayolherzberg's hygiene theory