What is 'Voluntary Unemployment'? Reasons for voluntary unemployment

By Srikanto Mandal 20 December, 2022

Voluntary unemployment refers to the situation when the worker intentionally chooses not to work.

It is a situation when a person is intentionally unemployed even though jobs are available in the economy.

 In other words, voluntary unemployment is when individuals decide not to participate in the labor market.

Let's see, what are the reasons behind voluntary unemployment?

Due to low wage scale or inability to find suitable employment matching skills/qualifications.

Generous unemployment benefits, which make taking a job less attractive.

Higher marginal tax rates, which reduce effective take-home pay.

Some jobs are seen as 'humiliating' or too tedious. For example, fruit pickers and security guards jobs.