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What is disguised unemployment – Types, Meaning and Definition

TFI Desk by TFI Desk
12 November 2022
in Knowledge
What is disguised unemployment definition
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What is disguised unemployment?

Disguised unemployment is a situation where a portion of the labor force is left without a job or is working in places where maximum productivity has already been reached. It is unemployment which has no effect on aggregate output. An economy exhibits disguised unemployment when productivity is poor and too many workers hold too few jobs. Let’s discuss about What is disguised unemployment and what are the types and definition let’s understand in detail.

What is disguised unemployment – Detailed explanation

What is disguised unemployment? – Disguised unemployment, also called disguised unemployment, occurs in developing countries where large populations create a surplus in the labor force. This occurs mostly in informal labor markets, which are capable of consuming large amounts of labor. Disguised or clandestine unemployment may refer to any portion of the population unemployed at maximum potential. However, it is still not counted in the official unemployment statistics of the national economy.

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Disguised unemployment includes those who work far below their potential, those whose jobs have low productivity and those who are not actively looking for jobs but are able to work. 400. Another way of describing disguised unemployment is that people are working but not effectively.

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Types of disguised unemployment

Underemployed: People who work part-time but want and can hold a full-time job may qualify under disguised unemployment. The same applies to people who accept work below their skill set. In such cases, disguised unemployment can also be called ‘underemployment’.

Illness and Disability: Although they may not work as actively as regularly employed people, sick and disabled people may be able to contribute to the economy. This type of disguised unemployment is temporary in case of illness. People in this category are often not included as part of the country’s unemployment statistics.

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No longer looking for work: If a person stops actively looking for a job, they are often not considered unemployed when it comes to measuring the unemployment rate because many countries require that a person actively Should be actively pursuing a job, be considered unemployed.

Redundant Jobs: Individuals whose jobs become redundant and retire early.

Unproductive Jobs: In terms of overall output Individuals whose jobs are unproductive.

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Unemployment situation in India

Unemployment situation in India is very depressing. With each passing day, we are inching towards a more terrifying problem. A developing economy like India is defined by its large population and mass unemployment, social and economic issues such as malnutrition, poverty, drug and substance abuse, and anti-social and criminal activities.

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Measures taken by the government

The Government of India has taken several steps to prevent disguised unemployment as a whole. Many self employment schemes have been started and elder people have been trained to deal with this social problem. These are some of the steps taken by the government to deal with all the unemployment. We hope that What is disguised unemployment article was helpful to you.

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