. Define unemployment. Explain various causes of unemployment and relationship between unemployment and inflation.

Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is persons above a specified age (usually  not being in paid employment or self-employment but currently available for work during the reference period.

Unemployment is measured by the unemployment rate, which is the number of people who are unemployed as a percentage of the labour force (the total number of people employed added to those unemployed).

Unemployment can have many sources, such as the following:

• new technologies and inventions
• the status of the economy, which can be influenced by a recession
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