Unemployment
Question 1: Define disguised unemployment?
Answer:
It is a situation in which more people are hired for a work than required. In other words when the potential of a person is not completely utilised, then the person is said to be in state of disguised unemployment.
Question 2: What do you mean by open unemployment?
Answer:
When a skilled or educated person who is capable of doing job or work is unable to find a job according to his skills so that he can earn a regular income, then the person is said to be in state of open unemployment.
Question 3: Give one example of disguised unemployment.
Answer:
When 10 workers are hired for a role that needs only 5 workers, then it can be regarded as disguised unemployment. It is generally seen in agriculture sector.
Distinguish between Open and Disguised Unemployment
Disguised unemployment is a condition in which the skills of the labor or the workforce that has been hired for employment, are not utilized in the production or to impart services i.e. the output of this workforce is not contributing to the growth of the economy and can be regarded as a form of unemployment in some cases. It may also be regarded as hidden unemployment. Some key points about disguised unemployment are:
- This type of employment has zero contribution to the economy of a country.
- It generally occurs in developing countries where large populations create a surplus in the workforce.
- It occurs when the number of workers hired is more than required or when too many workers are filling too few jobs. This results in low productivity.
- It may refer to any population that is not employed to its full capacity.
Underemployment is regarded as a type of disguised unemployment. If the people that are capable of working full time are employed at a part-time job then this may not utilize their skill set completely and can be regarded as underemployment which is a type of disguised unemployment. Thus we can say that disguised unemployment means when people are employed in disguise but not actually.
Some examples of disguised unemployment are
- If only 5 people are required to complete a task and instead 10 workers are hired for the same then 5 people are said to be in a state of disguised unemployment.
- We often see people such as electricians, carpenters, and plumbers who are unable to find work according to their full potential and hence are in a state of disguised unemployment.