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What is Hidden Unemployment

Unemployment is the condition of a person who is capable and available to do any work in which he is neither employed in any company or institution nor in any occupation of his own. In this article we will know what is Hidden Unemployment.

What is Hidden Unemployment

What is Hidden Unemployment

Hidden unemployment refers to people who are unemployed but are not included in official unemployment figures. The term also includes people who are unemployed. Official unemployment figures often include only people without jobs but who are actively looking for work.

Unemployment or under-employment of workers that is not reflected in the official unemployment statistics because of their compilation. Only people who have no work but are actively looking for work are considered unemployed. Those who have given up, those who are working less than they like, and those who work in jobs in which their skills are underutilized, are not officially counted as unemployed, this group is called Hidden unemployment.

This unemployment includes those people who are willing to work but cannot do so. They cannot work because of factors beyond their control. Factors preventing them from working include labor market inflexibility and a decrease in aggregate demand. Sometimes illness is also a cause.

Hidden unemployment is the number of people who do not have work but are not counted in government reports, for example, people who have stopped looking for jobs and those who work less than they would like.

Hidden unemployment is unemployment that does not affect total economic output. This happens when productivity is low and too many workers are filling too few jobs. It can refer to any part of the population that is not employed at full capacity.

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