What is the meaning of concealed unemployment

What is the Meaning of Concealed Unemployment?

Concealed unemployment is an economic concept that refers to people who are not counted as unemployed, but who would like to work if the right job opportunities were available. It is also known as hidden unemployment or underemployment.

The term “concealed unemployment” was coined in the early 20th century to describe the phenomenon of people who were not counted as unemployed in official statistics, but were not working at their full potential. This includes people who are underemployed, such as those who are working part-time but would prefer to work full-time, or those who are working in jobs that do not match their skills and qualifications.

Concealed unemployment is an important concept because it highlights the fact that the official unemployment rate can fail to capture the true picture of the labor market. While official statistics may indicate low unemployment, there may be a significant number of people who are not counted as unemployed but who are not working at their full potential.

Concealed unemployment is often caused by structural problems in the economy, such as mismatches between the skills and qualifications of workers and the jobs available. It can also be caused by a lack of job opportunities, or by a mismatch between the wages offered and the cost of living.

In order to address concealed unemployment, governments and businesses need to take steps to create more job opportunities and to ensure that the wages offered match the cost of living. This can help to ensure that everyone who wants to work can find a job that suits their skills and qualifications.

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