Disguised Unemployment

AAA

DEFINITION of 'Disguised Unemployment'

Unemployment that does not affect aggregate output. Disguised unemployment exists where part of the labor force is either left without work or is working in a redundant manner where worker productivity is essentially zero. An economy demonstrates disguised unemployment where productivity is low and where too many workers are filling too few jobs.

INVESTOPEDIA EXPLAINS 'Disguised Unemployment'

Disguised unemployment exists frequently in developing countries whose large populations create a surplus in the labor force. Where more people are working than is necessary, the overall productivity of each individual drops. Disguised unemployment is characterized by low productivity and frequently accompanies informal labor markets and agricultural labor markets, which can absorb substantial quantities of labor.

RELATED TERMS
  1. Unemployment

    Unemployment occurs when a person who is actively searching for ...
  2. Civilian Labor Force

    A term used by the U.S. Bureau of Labor Statistics (BLS) to describe ...
  3. Below Full Employment Equilibrium

    A macroeconomic term used to describe a situation where an economy's ...
  4. Full Employment

    A situation in which all available labor resources are being ...
  5. Economy

    The large set of inter-related economic production and consumption ...
  6. Total Permanent Disability (TPD)

    A condition in which an individual is no longer able to work ...
Related Articles
  1. Economics

    The Economics Of Labor Mobility

    Loosening labor restrictions has both good and bad effects for a country and its workers.
  2. Economics

    The Unemployment Rate: Get Real

    Depending on how it's measured, the unemployment rate is open to interpretation. Learn how to find the real rate.
  3. Professionals

    Jobless Recovery: The New Normal Since 1990

    Just because the economy rebounds from a recession does not mean the unemployment rate will follow.
  4. Professionals

    Jobless Growth: Are You Prepared?

    Economic growth doesn't always mean employment growth. Learn about how the jobless growth economy affects workers and investors.
  5. Retirement

    How Unemployment Affects You (Even If You're Working)

    Rebounding from a stint of unemployment can be a frustrating thing to do. These tips should soften the blow.
  6. Personal Finance

    Top U.S. Cities For The College Class of '15

    Look for a city with a low unemployment rate, a high number of job opportunities, a sizable job market and good starting salaries.
  7. Personal Finance

    Just Graduated? How To Find The Best Career

    No single career is "best" for everyone. But here's how to identify where the good jobs are, and how to launch yourself onto a rewarding path.
  8. Entrepreneurship

    How Important Is Social Media For Your Company?

    Freelancers and marketing agencies are just some of the resources companies are now using to develop their social media.
  9. Entrepreneurship

    Are You A Business Owner Suffering From Stress?

    Don't run yourself down. It's OK to take a vacation. We give you some tips on how to let go.
  10. Personal Finance

    How To Find A Job With Poor Credit?

    It's not legal for an employer to refuse to hire you for having bad credit, but he doesn't have to say that you weren't hired because of your bankruptcy.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center