Distinguish between Open Unemployment and Disguised Unemployment.

By Mandeep Kumar|Updated : October 3rd, 2022

The difference between open unemployment and disguised unemployment is that the situation in which people do not get any kind of work to fulfill their basic needs is called open unemployment. In contrast, the phenomenon wherein more people are employed than actually needed is known as disguised unemployment. The difference between open and disguised unemployment is presented in the table below.

To understand the distinguish between Open Unemployment and Disguised Unemployment, take a look of the table below.

Distinguish between Open Unemployment and Disguised Unemployment

Open Unemployment

Disguised Unemployment 

In this, an individual is unable to earn his livelihood because of having no job.

In this, individual works at a place where employed people are more than required.

It is clearly visible to others.

This is a hidden type of unemployment.

It exists among the educated unemployed.

It exists mostly in the agriculture sector in rural areas.

Distinguish Between Open and Disguised Unemployment

In open unemployment, there is no job in the hands of the person, whereas in disguised unemployment, the person works in a place employing more people than necessary. This is the key difference between open unemployment and disguised unemployment

What is Unemployment?

The situation in which a person who is actively searching for a job and is unable to find work is called unemployment. There are various types of unemployment, such as Open Unemployment, Disguised Unemployment, Seasonal Unemployment, Structural Unemployment, etc. Unemployment is a tool to measure the health of the economy.

As a matter of concern, the unemployment rate in India is increasing day by day. It is affecting the economy of India. The number of unemployed people is inversely proportional to the development of a nation.

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FAQs on Open Unemployment and Disguised Unemployment

  • When a person has no job in hand and does not earn anything at all is called open unemployment. On the other hand, the unorganized sector where either work is not consistently available or too many people are employed for some work that does not require so many hands is known as disguised unemployment.

  • The causes of unemployment in India are a Large population, Low or no educational levels and vocational skills, a Huge workforce associated with the informal sector, etc.


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