Question

Distinguish between open unemployment and disguised unemployment.

Answer 1

Open Unemployment-
Under this, the worker is ready to work, but he is unable to find any work. It can occur in any sector.
Disguised Unemployment-
Under this, more workers are employed than the requirement so the workers are working but all of them are made to work less than their potential. Under this, if the extra workers are removed the production does not fall. It occurs mainly in agriculture.

Answer 2

Difference between open unemployment and disguised unemployment is given below.

Open unemployment:

• Open job refers to the situation where an individual does not have a job and cannot earn a living.
• This unemployment is clearly visible.
• Unemployment among people will affect an economy's production of "goods and services".

Disguised unemployment:

• Disguised unemployment refers to a situation where people are required to work in a place where there are no more people. Apparently, the situation in which people work, but they are all made to work "less than their potential".
• Clearly, this unemployment is not visible.
• People's unemployment will not affect the production of "goods and services" because people availability is more than required.