Sunday, 10 October 2021

What is Unemployment? What is hidden employement

 Unemployment refers to the people who are not having job. There may be several factors which can prevent the person from getting the job. Factors like unwillingness to do job, or no will to work, lower market condition, less demand of particular skill or more number of skilled unemployed, illness, less vacancy, more competition for a particular post, less skills, no skills, etc are some factors which can prevent  the person from getting the job.

Types of unemployment

As mentioned, several factors contribute in the increment of the unemployment person proportion. Following we are listing some different type of unemployment:

Frictional unemployment

This is stage between employment and un employment. The peoples falling under this category are willing to work and are making efforts to get a job but currently are not having job.

The frictional unemployment includes people who have send their resumes, CV to different companies, attending interviews, applying for different jobs and are waiting for the posting or for the joining letter. The people those who applied for the government vacancy or are preparing for the government jobs, who are waiting for the interview or the joining letter are also counted among the frictional unemployment.

Long term unemployment

 Those peoples who are not having any job for more than 12 months are counted under long term unemployment. They are people who are either trying to find job or not trying but are not having any job for more than 12 months.

Cyclical unemployment

  Employees like in cyclical business that used to operate only in few months of  the years are counted under cyclical unemployment. When the business is running, all the employees are having job. But as the business starts shrinking, the employees loss their job and then counted under unemployed.

Hidden employment

They are unemployed people who are not counted among the official unemployed peoples.  

The logs of hidden employment are increasing these days. With the increase in the human population, the employment is becoming limited resource and thus the graph of the hidden employment is also increasing.

Now the question arise what is hidden employment? In this guide, we are going to discuss on what is hidden employment?

What is hidden employment?

Hidden employment is generally used for the peoples who are not having any job but are also not counted under the official unemployment figures. The same term of the hidden employment is also used for the peoples who are under the category of underemployment.

The census for the unemployment only counts the people who are not having any job but not the people who are actively seeking for the suitable job for them. The term hidden employment is often alternatively used by another term Disguised unemployment.    ]


Underemployment is also kind of category under the hidden employment. This consists of the people who are doing less suitable job in comparison to their qualification. For example, if an engineer is driving taxi, though he is not unemployed but is actually underemployed.

In underemployed peoples, those who are highly skilled but are doing low paying or  less skilled job, or who are willing to work full time but are performing in only the part time job are includes. Part time workers who are willing to or looking for full time jobs are also counted under the underemployment. The underemployment is a category of the hidden employment.

The government often fails to count the people who are hidden employed in their list of unemployed. They are those peoples who are not having job but are looking actively for the job or those who are doing less work in compare to their potential. In the hidden employment, those who are working but are not making any difference in the net production are also included. For example, we can consider a farm with several workers. In the case when some of the workers leave, if the production of the farm stays same, it means several of the workers there were hidden employed.  

Involuntary and hidden employment

The word involuntary unemployment refers to those who are willing to work from their heart but are unable to find a suitable job for them. The involuntary unemployment includes those peoples who are having high skills but despite of their high qualification, they fails to find a suitable job for them. Those factors that are beyond the control of the people are the major reason for the involuntary unemployment in the peoples.

Factors like labor market inflexibilities, illness, deficiency in aggregate demands, etc are some factors which are increasing the ratio of involuntary unemployment. For example, if in the construction industry, there is less demand of the construction material, this will automatically decrease the demand for the labor as well as thus will rise the issue of the involuntary hidden employment.

Some times severe disease conditions like lameness prevents the people to do job even after their strong will to work. Many more factors like poor financial position of the market also leads to the decrease in the employment.

Difference between hidden employment and underemployment

Underemployment term is use for the people who are doing less suitable job in comparison to their skills. For example, if a person is doing part time job but is suitable and willing to do full time job is counted under underemployment. Or in the case, when a particular person is highly skilled but is not getting the suitable job and thus doing low paying job is also comes under underemployment. For example, if a skilled engineer with a B tech degree is driving tai for his livelihood, then he will be counted under underemployed person.

Hidden employment is where the person is willing to do job but is either getting no job or is getting les suitable job. They are basically job less but are not counted among the unemployed figures of the government. Underemployment is also a  type of hidden unemployment.

The bottom line

SO these are all about unemployment and hidden employment!


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