DEFINITION of 'Concealed Unemployment'

When people who are out of work are not counted in official unemployment statistics for a variety of reasons. Those potential workers falling into this category typically include individuals who have given up looking for employment, those who have taken an early retirement even though they would prefer to still be employed and those with seasonal or part time employment.

BREAKING DOWN 'Concealed Unemployment'

Unemployment statistics do not always accurately reflect the number of unemployed people in the workforce. Unemployment statistics typically are derived only from those people who are both out of work and actively seeking a job. Concealed unemployment figures are typically not used in statistical calculations. People who are out of work do not always file for unemployment benefits, and it is these potential workers that create concealed unemployment.

  1. Unemployment

    Unemployment occurs when a person who is actively searching for ...
  2. Unemployment Insurance

    Unemployment insurance provides benefits to workers who meet ...
  3. Structural Unemployment

    A longer-lasting form of unemployment caused by fundamental shifts ...
  4. Unemployment Rate

    The unemployment rate is the percentage of the total labor force ...
  5. Disguised Unemployment

    Disguised unemployment is unemployment with low productivity ...
  6. Unemployment Income

    An insurance benefit that is paid as a result of a taxpayer's ...
Related Articles
  1. Personal Finance

    Understanding Natural Unemployment

    Natural unemployment is often defined as the lowest rate of unemployment an economy will reach.
  2. Insights

    The Cost of Unemployment to the Economy

    Unemployment carries many costs, both obvious and hidden, for an economy.
  3. Financial Advisor

    How Labor Force Participation Rate Affects U.S. Unemployment

    While a falling unemployment rate sounds like a good thing, it can actually be indicative of people leaving the labor force because they can't find a job.
  4. Personal Finance

    U.S. Labor Participation Rate at Record Lows

    In absolute terms, labor participation hit an all-time low.
  5. Insights

    Leading Economic Indicators: U.S. Bureau of Labor Monthly Stats

    The Bureau of Labor Statistics' monthly employment figures are a key economic indicator. Here's how they work.
  6. Personal Finance

    America’s Labor Market: Hidden Distortions and Uncertain Forecasts

    Employment reports released by the Bureau of Labor Statistics have a profound impact on political, business, consumer, and investor behavior.
  7. Investing

    How Inflation and Unemployment Are Related

    How can inflation affect unemployment, and vice versa? Here we examine wage inflation, stagflation and the Phillips Curve.
  8. Personal Finance

    Labor Market Worse Than Feared

    Harris Poll shows labor market is in bad shape.
  1. Do rising unemployment rates tend to increase or decrease investor sentiment and ...

    Discover whether rising unemployment rates tend to increase or decrease consumer confidence and investor sentiment. Unemployment ... Read Answer >>
  2. Is there a natural rate of cyclical unemployment?

    Learn more about cyclical unemployment and find out about the relationship of cyclical unemployment to the natural unemployment ... Read Answer >>
  3. What is the difference between structural unemployment and cyclical unemployment?

    Learn more about about the differences between structural and cyclical unemployment and when cyclical unemployment becomes ... Read Answer >>
  4. What are some of the key shortcomings of how the U.S. unemployment rate is determined ...

    Understand how the unemployment rate reported by the BLS fails to account for people who have given up looking for jobs or ... Read Answer >>
  5. What is the best way for my startup to have sustainable growth?

    Discover how many years structural unemployment can last. Deciding whether the economy is encumbered by structural or cyclical ... Read Answer >>
Trading Center