Distinguish between Open Unemployment and Disguised Unemployment

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.

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, 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.

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