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Disguised unemployment: Aka hidden unemployment refers to a situation

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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 is a phenomenon where a portion of the labor force either remains unemployed or works in positions that contribute very little to overall productivity. Interestingly, despite the presence of such unemployment , it does not negatively impact a nation's aggregate economic output. Disguised unemployment indicates poor labour allocation, especially for agriculture, while seasonal unemployment reflects the abnormal nature of jobs in a few industries. Disguised unemployment , or hidden unemployment , is an economic term used to refer to a portion of the labor force involved in redundant work

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