Question

What is disguised unemployment ?

Answer 1

Disguised unemployment is a situation where people appear to be engaged but actually they are not. If these people are removed, the total productivity will not change.

Answer 2

When part of employees of an organisation or the labour force, does not have work or work in a manner just to stay employed, with zero productivity, then it is called Disguised Unemployment.

The actual total output of the organisation remains unchanged, whether these employees work or not. In an economy with Disguised Unemployment, productivity is low and there are too many employees filling up too few jobs.