Distinguish between Open Unemployment and Disguised Unemployment

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The distinguish between Open Unemployment and Disguised Unemployment is based on whether a person owns a job. In open unemployment, a person does not have any job, whereas, in disguised unemployment, more than required people are employed. Open unemployment is when people cannot find work that meets their basic needs. In contrast, disguised unemployment refers to the situation in which more people are employed than are actually required.

Distinguish between Open and Disguised Unemployment

Open unemployment is dangerous for a growing economy because it denies the country’s labor adequate employment opportunities. To distinguish between Open and Disguised Unemployment, consider the table given below.

Open Unemployment Disguised Unemployment
An individual cannot earn his livelihood because of 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.

Disguised Unemployment vs Open 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.

Unemployment is a tool to measure the health of the economy. As a matter of concern, India’s unemployment rate is increasing daily.

  • It is affecting the economy of India.
  • The number of unemployed people is inversely proportional to the development of a nation.

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:

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