Question

Distinguish between open unemployment and disguised unemployment.

Answer 1

Open unemployment:

• It is open and clearly visible in the society as the person is sitting idle because of absence of opportunity.
• This unemployment affects the growth output of the country as human resource is getting wasted.

Disguised Unemployment:

• ​It is hidden as the person seems to work but actually he or she is not required there. It is a condition in which the persons capabilities are not making any effects.
• This unemployment does not affect the growth output as the work is already being done by the people employed.