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<p>According to classical economists there is always full employment in the economy. Neither ever raises unemployment nor there possibility of inflation. This is the reason, they believed in the operation of market forces and free enterprise system, except law and order like situation of the economy.</p>
<p>But during 1930’s Great Depression, classicists ‘utopia’ of full employment was shattered when millions of people were jobless and looking for jobs. Then it is being realized that government should interfere in economic life. Because there are many interrelated factors which start effecting due to one an other as rising price level, economic backwardness, deficit in BOP, unequal income distribution and unemployment are connected functions.</p>
<p>[sky]In modern market economy different economic forces act together and employment level is dependent on them. There are different types of unemployment like, seasonal, classical, cyclic, fractional, structural etc. with their respective causes. Some common causes are listed below.</p>
<p>• Revolutionary change in Technology</p>
<p>• Recessions</p>
<p>• Inflation</p>
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<p>• Change in trends</p>
<p>• Climate change</p>
<p>• Availability of substitution
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