what is disguised unemployment ? why is it called hidden unemployment ?
Answers
Answer:
disguised unemployment is a situation when any company needs 3 workers but there are 8 workers are working then the other five workers are considered as disguised unemployed
Disguised unemployment basically refers to the section of the labor force that is actually unemployed or employed in any industry or a company where their skills and capabilities are not optimally or fully utilized due to low work requirements and factor/input productivity.
Explanation:
Disguised unemployment is also termed as "hidden unemployment" as much of the sources of this type of unemployment is implicit and officially not reported or published by the government.It does not practically amount to absolute unemployment or joblessness among the workers or labor force but implies productive inefficiencies in the economy attributable low labor productivity and overcrowding of labor force in any particular industry,sector or company.If the workers or employees in any company or industry is not able to function according to the best of their skill levels,professional qualification and capabilities,it leads to under-efficiency or complete inefficiency in some instances.Now,low labor or employee productivity can primarily arise from overcrowding of the workers or employees with too little activities/works to perform.In this instance,most of the workers or employees will sit idle and literally waste their professional skills,knowledge and potentials.Therefore,under disguised unemployment,the workers and employees might not be without a job or fully unemployed but suffer from under-utilization of their professional endowments,which is why this type of unemployment is called hidden and officially unregistered or unrecorded.