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Unemployment means–

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Disguised unemployment exists, where part of the labour force is either left without work or is working in a redundant manner where worker productivity is essentially zero. An economy demonstrates disguised unemployment where productivity is low and where too many workers are filling too few jobs.

Disguised unemployment exists frequently in developing countries whose large populations create a surplus in the labour force. Where, more people are working than is necessary, the overall productivity of each individual drops.

Disguised unemployment is characterized by low productivity and frequently accompanies informal labour markets and agricultural labour markets, which can absorb substantial quantities of labour.

  1. People on sickness/disability benefits (but, would be able to do some jobs). 
  2. People doing part-time work. 
  3. People forced to take early retirement and redundancy. 
  4. Disguised unemployment also include people doing jobs that are completely unproductive,  i.e., they get paid, but they don’t have a job. In a developing economy like China, many workers in agriculture may be adding little if anything to overall unemployment, therefore this type of employment is classed as disguised unemployment. 

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