Chapter 2

NCERT
Class 10
Economics
Solutions
11. Distinguish between open unemployment and disguised unemployment.

Question:

Distinguish between open unemployment and disguised unemployment.

Answer:

Open unemployment : Open unemployment is that unemployment, in which the labor force is more in a country but the industrial structure is small, it cannot consume all the labor power, that is, the laborer wants to work but does not get work. This unemployment is found in most of the industrial areas of India.

Disguised or hidden unemployment : This is the situation in which people appear to be engaged in work but in reality they are unemployed. For example, eight people are working on a piece of land, but the production is being done as much as it is done by the work of five people. In such a situation, the three additional persons who are engaged in work are hidden unemployed because their work does not affect the production.

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