Hidden unemployment - causes and consequences

On the level of unemployment, you can judge the country as a whole because the more developed the state, the less the percentage of people who do not have a job. Unusual is the concept of "hidden unemployment", which is increasingly emerging because of a significant decline in production.

What is hidden unemployment?

The phenomenon in the economy, in which a person has jobs and formally maintains relations with the employer, but in fact employment is absent, is called hidden unemployment. It is worth noting that the payment of wages is also not mandatory. The latent form of unemployment refers to the part of employees who have become unnecessary in production due to reduced output of products or due to structural changes.

In some cases, those who want to get a job are considered as secretive unemployed, but they can not realize this because of a number of reasons and more often they do not depend on a person, but are related to the economic situation of the country. Finding out what latent unemployment is and its features, it is worth considering the main forms:

1. Excessive number of employees who receive a full salary, so when they leave the company will not incur any losses.
2. The presence in the state of people who work not a full schedule, but they would like to work in normal mode, but this possibility is not due to cuts. Such hidden unemployment is called "partial".
3. Execution of holidays for a number of people who do not imply the preservation of wages . Often this form of unemployment leads to the presence of secondary employment.
4. Availability of intramuscular or full-day equipment downtime due to a number of reasons, for example, lack of power supply.

Hidden and open unemployment

The concept of hidden unemployment is understood, and as for the open, it is a situation when an individual understands that he has lost his job and can be officially registered with the employment service. This includes not only the registered part of the population, but also the unregistered type, that is, people who work for themselves and conceal the revenues from the state, and even those who simply do not want to work on their life beliefs. Hidden and open unemployment are two interconnected concepts, because there is always a high probability that the first type will go to the second.

The causes of hidden unemployment

There are a number of factors that can trigger the emergence of hidden unemployment:

1. An enterprise to save the number of employees reduces the working day. This is done with the expectation of an early change in the economic situation.
2. Some conditions for the emergence of hidden unemployment are associated with the policy of the state itself, which includes some benefits for registered employees.
3. In the absence of a financial opportunity to pay wages, the enterprise sends employees on vacation, which is not paid.
4. Describing the causes of hidden unemployment, it is worth pointing out another factor, so employees of pre-retirement age agree to hidden unemployment, since they are important continuous work experience .

Negative aspects of hidden unemployment

The consequences of open and hidden unemployment are similar between themselves. If we consider them from the side of the economy, this is how the training depreciation, the production decline, the qualification is lost, and the standard of living falls. It is worthwhile to consider what happens with the latent form of unemployment from a social point of view, for example, working activity is falling, tension in society is growing, the number of diseases is increasing and the criminal situation is aggravated.

Ways to solve hidden unemployment

To prevent mass reductions, it is necessary to fight against hidden unemployment.

1. Application of flexible system of vocational training and retraining.
2. The latent form of unemployment can be destroyed by conducting an active investment policy aimed at creating a large number of economically viable jobs and their further support.
3. Increase pension payments and encourage small businesses.
4. The use of different forms of secondary employment.