Describe the difference between open unemployment and litteral unemployment.
Answers
Answer:
1.Open Unemployment
(i)Open unemployment is a situation in which a person who is able (or fit) and willing to work at existing wage rate cannot get work. This type of unemployment exists due to lack of resources.
(ii) Open unemployment exists among the educated unemployed. Generally this type of unemployment can be seen in the urban areas.
(iii) Under this, the worker is ready to work, but he is unable to find any work.
2.Disguised unemployment
(i) Disguised unemployment is a situation in which more people are engaged in activity than the required one. The absence of alternative employment opportunities leads to this situation.
(ii) On the other hand disguised unemployment exists generally in the agricultural sector and mostly among the rural people.
(iii)Under this, the worker is working, but if he is removed, the production does not fall.