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Why is hidden unemployment important to consider along with the traditional unemployment rate?

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Answer:

Disguised unemployment / hidden unemployment, is an economic term used to refer to a portion of the labor force involved in redundant work with very minimal to no productivity

Step-by-step explanation:

Disguised unemployment / hidden unemployment, is an economic term used to refer to a portion of the labor force involved in redundant work with very minimal to no productivity.

The unemployment rate is the most commonly used indicator for understanding conditions in the labour market. The labour market is the term used by economists when talking about the supply of labour (from households) and demand for labour (by businesses and other organisations). The unemployment rate can also provide insights into how the economy is performing more generally, making it an important factor in thinking about monetary policy.

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User Ihor Drachuk
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