Disguised unemployment is more serious than open unemployment evaluate? (5 marks )
Dear Student,
The following points may help you:
a. Open unemployment refers to a situation where a person fails to get a regular job. Under this situation a person is willing to work but fails to get a job that gives him a regular income.
b. This situation is surely hampers the growth of an economy and transforms the vital population of the country onto a liability.
c. However, if we compare open unemployment with disguised unemployment , the latter has far more serious consequences.
d.Under employment refers to a situation where more people are involved than actually required and work much below that heir skills and potential. Also referred as disguised unemployment, here the productivity per person is marginal or negative. This type of unemployment exist in all the three sectors, we may give the following examples:
i. For example in the primary sector, there are large number of people employed in small plots of land than actually required making no significant contribution to the overall productivity. Here people are working much less than their potential, because of the size of the plot which is acting as a constraint due to which they cannot contribute to the fullest.
ii. In the secondary sector there are large number of casual labourers employed on daily basis doing repair jobs, painting , plumbers etc and are meagerly working much below their capacities.
iii. In the tertiary sector, people are involved in lifting loads, pushing a cart again much below their potential and are paid less.
e. Under disguised unemployment there is rather wastage of human resources.
f. Manpower is under utilised.
g. It is more psychologically damaging for an individual.
h. Also there is no optimum utilisation of resources.
Regards
The following points may help you:
a. Open unemployment refers to a situation where a person fails to get a regular job. Under this situation a person is willing to work but fails to get a job that gives him a regular income.
b. This situation is surely hampers the growth of an economy and transforms the vital population of the country onto a liability.
c. However, if we compare open unemployment with disguised unemployment , the latter has far more serious consequences.
d.Under employment refers to a situation where more people are involved than actually required and work much below that heir skills and potential. Also referred as disguised unemployment, here the productivity per person is marginal or negative. This type of unemployment exist in all the three sectors, we may give the following examples:
i. For example in the primary sector, there are large number of people employed in small plots of land than actually required making no significant contribution to the overall productivity. Here people are working much less than their potential, because of the size of the plot which is acting as a constraint due to which they cannot contribute to the fullest.
ii. In the secondary sector there are large number of casual labourers employed on daily basis doing repair jobs, painting , plumbers etc and are meagerly working much below their capacities.
iii. In the tertiary sector, people are involved in lifting loads, pushing a cart again much below their potential and are paid less.
e. Under disguised unemployment there is rather wastage of human resources.
f. Manpower is under utilised.
g. It is more psychologically damaging for an individual.
h. Also there is no optimum utilisation of resources.
Regards