Question

Distinguish between open unemployment and disguised unemployment.

Answer 1

Open unemployment is when a person has no job in hand and does not earn anything at all. On the other hand, disguised unemployment is mainly found in the unorganised sector where work is not consistently available or too many people are employed for some work that does not require so many hands. This is the essential difference between open unemployment and disguised unemployment.

Answer 2

Sr. No.	Point of Difference	Open Unemployment	Disguised Unemployment
1.	Definition	Open unemployment refers to a situation where people are willing and able to work but cannot find any job.	Disguised unemployment refers to a situation where people appear to be employed, but their contribution to production is zero or less than required.
2.	Visibility	Open unemployment is clearly visible because individuals are openly without work.	Disguised unemployment is hidden or not easily visible since the workers seem to be occupied.
3.	Effect on Production	Directly reduces production because people are not working at all.	Disguised unemployment does not reduce production if surplus workers are removed, as they add no extra output.
4.	Nature	Involves a lack of employment opportunities	Involves excess employment beyond necessity
5.	Impact on Economy	Negative impact, as it causes loss of potential income and output.	No immediate impact on output since excess labour is unproductive.
6.	Sector typically affected	Can occur in any sector, including industrial and services.	Mostly found in agriculture and some informal sectors.