Definition: The Seasonal Unemployment means the demand for a specific kind of work and workers change with the change in the season. Simply, the period when the demand for the manpower as well as the capital stock reduces because of a decreased demand in the economy at a particular point in time in a year causes the seasonal unemployment.
The seasonal unemployment is prevalent in those industries which are engaged in seasonal production activities. Such as agricultural industry wherein the demand for workers is more during harvesting than is required in other months in a year. Similarly, in the case of a hotel industry, the demand for the catering staff as well as the housekeeping staff is more during the peak season as compared to the demand in the off-season.
The seasonal unemployment means not only the under-utilization of manpower but also the resources used in the production. Such as the demand for woolen clothes will be more in winters than the other seasons and hence the need for the capital resources and the manpower in the textile industry will be more during this period.
The seasonal unemployment is more or less predictable as it is known with certainty the time period during which the demand for the commodity changes. It is a form of structural unemployment wherein the economy structure changes in accordance with the change in the season, and hence the demand for the manpower varies accordingly.