Disguised unemployment , or hidden unemployment , is an economic term used to refer to a portion of the labor force involved in redundant work Disguised Unemployment Published Oct 25, 2023 Definition of Disguised Unemployment Disguised unemployment refers to a situation where individuals appear to be employed, but their contribution to the productive output of an economy is minimal or nonexistent. Disguised unemployment aka hidden unemployment refers to a situation where labour that is employed but he/she is not utilised for the production of goods and services. It does not contribute to the output of an economy as their marginal product is zero (contribution to production is nil). Disguised unemployment definition can be stated as a type of unemployment where too many individual workers are filled with few job requirements. Disguised unemployment cab leads to low productivity.
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