Education and Career Forum

what is meant by open unemployment and disguised unemployment

Originally Posted by lingalaaishwarya

what is meant by open unemployment and disguised unemployment

Dear,

Both open and disguised unemployement are harmful for the economic growth of any nation. It is a tipical economic term but i will explain to you in a very simple language.

OPEN UNEMPLOYMENT:
In this it is easy to understand that a person is unemployed as it does not have any job and he does not get any salary. So any person who has completed his/her studies and doing nothing comes under this category.

DISGUISED UNEMPLOYMENT:
This is not easy to be recognized. In an organisation due to lack of new projects many employee are made to sit on bench i.e. wait for any project doing nothing but they are still paid as they are bound under the organisation. This reduces the capability of an employee and make him less productive.

Disguised unemployment is thus more harmful for the economy of a nation than open unemployment.

Hope you have understood it!

Hi,
This is the most interesting question that i have received so far. Well open unemployment is the one that is effective directly. Say suppose someone is working in a company and gets fired from that company, then it is that person that is effected directly. The person concerned becomes unemployed himself and becomes an example of open unemployment.
Now disguised unemployment is also known as indirect unemployment. This occurs when the concerned company itself becomes closed. Now everyone working directly in the company becomes the victim to open unemployment. Now the persons who could be employed there or the order supply company or other commercial companies involved monetarily with this company becomes victim to disguised unemployment.