Scribe of wisdom

Disguised Unemployment

Also known as hidden unemployment, this refers to a situation where labour that is employed in a job is not actually utilised for the production of goods and services. In other words, such employment does not contribute to the output of an economy and is thus akin (aking means – something of similar character) to a form of unemployment.

Sometimes disguised unemployment could simply be a form of underemployment wherein the skills of a labour force are not utilised to their full capacity. In many other cases, however, such unemployment could simply be due to the lack of other alternative avenues of production where the surplus labour could be employed profitably.

Gratitude to Ms. Anoushka Sajith Nair who introduced this term to me.

Leave a Reply

Your email address will not be published. Required fields are marked *