DISCUSS UNEMPLOYMENT Also known as hidden unemployment, this refers to a situation where labour that is employed in a job is not actually utilised for the production of goods and services. ... Sometimes disguised unemployment could simply be a form of underemployment wherein the skills of a labour force are not utilised to their full capacity.

Hidden unemployment is also called: (b) disguised unemployment

Explanation:
Hidden unemployment, also known as disguised unemployment, refers to a situation where individuals are employed but their contribution to the overall output is minimal or redundant. It is a phenomenon commonly observed in the agricultural sector, where a large number of people are engaged in farming activities, but the productivity per worker is low. This type of unemployment is characterized by excessive labor in a particular sector, which does not contribute significantly to the overall output of the economy.

Causes of Hidden Unemployment:
Hidden unemployment is primarily caused by the following factors:

1. Technological Advancements: With advancements in technology, the need for manual labor decreases, leading to excess labor in various sectors.

2. Inefficient Work Practices: In some cases, outdated work practices or inefficient methods of production result in the employment of more workers than necessary.

3. Lack of Diversification: In economies where a particular sector, such as agriculture, dominates, the excessive reliance on that sector leads to hidden unemployment.

Characteristics of Hidden Unemployment:
The following are the key characteristics of hidden unemployment:

1. Excess Labor: There are more workers than required for a particular task or sector.

2. Low Productivity: The productivity per worker is low, indicating that the labor is underutilized.

3. Redundant Workforce: If a portion of the workforce is removed, the overall output of the sector remains unaffected.

Effects of Hidden Unemployment:
Hidden unemployment has several adverse effects on the economy, including:

1. Economic Inefficiency: It leads to the inefficient allocation of resources, as labor is not utilized effectively.

2. Reduced Output: Excess labor without significant contribution to output reduces the overall productivity of the economy.

3. Income Inequality: Hidden unemployment often results in lower wages and income inequality among workers.

4. Poverty and Social Issues: It can lead to increased poverty levels and create social and economic disparities within a society.

Conclusion:
Hidden unemployment, also known as disguised unemployment, is a situation where individuals are employed but make minimal or redundant contributions to output. It is caused by factors such as technological advancements, inefficient work practices, and lack of diversification. Hidden unemployment leads to economic inefficiency, reduced output, income inequality, and social issues. It is essential for policymakers to address hidden unemployment by promoting skill development, technological advancements, and diversification of the economy to ensure optimal utilization of labor and sustainable economic growth.