Distinguish between open unemployment and disguised unemployment.

Unemployment is defined as the situation when a person actively searches for a job and is unable to find work. Unemployment describes the health of the economy. There are various types of unemployment. In this article about two types of unemployment that is open unemployment and disguised unemployment.

Open unemployment

Open unemployment is the situation when a person is willing to work, is educated but is unable to get a job and work. This kind of unemployment is clearly visible in the society. We come across many educated people who express their views saying that am graduated from such a reputed college but am still in search of a job. This kind of unemployment has different criteria in rural and urban areas. Open unemployment behaves differently in cities as well as in small towns and cities.

open unemployment in rural areas

In urban areas on taking the case of huge multinational companies have a large number of employees but the capable ones are very less in that firm. In some departments of the companies one employes an employee due to the political or social influence of a person or due to nepotism or due to many internal reasons. The person who is highly capable and qualified for the job may not get the job but the person who is not willing to work but due to some pressure or external force he is made to work.

Open unemployment in rural areas

In rural areas like in villages or towns when a person is in search of jobs, he will not find it and tries to move to the city in search of a job. In rural areas a person who is willing to work but can not work due to some traditional and regional rules laid by those villages. He may not find a job as he does not belong to that particular village and has come from some other places, these reasons creates a situation of open unemployment in rural areas.

Disguised unemployment

The situation of underemployment or disguised unemployment is a situation where people are apparently working but all of them are made to work less than their potential is called disguised unemployment. In this situation, the person considers himself employed but is actually not working and utilising his skills in the job.

Disguised unemployment in rural areas

In rural areas, we know that agriculture is the main source of income, this kind of unemployment situation is quite common here. For instance, a piece of land requires only three people to work on it and rather, five people are working on it, then the two extra people are said to be in a situation of disguised unemployment. Not in the field of agriculture we can also see this in small scale industries set up in a village. The labours in these small scale industries are in short of work as more employees are appointed and others face the situation of disguised unemployment.

Disguised unemployment in Urban areas

In urban areas, disguised unemployment is very often. For instance painters, plumbers, electricians are unable to find work on a daily basis and work way less than their potential. A person who has the energy to work in a huge firm but he cannot showcase his skills and perform better as there are many workers and work is distributed among all so he feels that there is nothing much to do.

Unemployment has become the main cause of a decrease in the economy rate of the country. Not only these two there few more types of unemployment like structural unemployment. seasonal unemployment, vulnerable unemployment, technological unemployment and frictional unemployment.

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