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April 25, 2024, 02:28:20 pm

Author Topic: Definition of 'hidden unemployment'  (Read 3470 times)  Share 

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bamboozled

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Definition of 'hidden unemployment'
« on: November 23, 2020, 05:33:54 pm »
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Everywhere I look the definition for hidden unemployment is different. According to my textbook it's people who have left the workforce and are no longer looking for work. According to some sites I've find its people who are employed but not currently working. I feel like this definition makes more sense because people on JobKeeper are considered part of hidden unemployment? I think this term will likely be on the exam, so if anyone knows it would be a big help :))

Bri MT

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Re: Definition of 'hidden unemployment'
« Reply #1 on: November 23, 2020, 05:51:52 pm »
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I didn't study economics in VCE but:

- I searched the past two exams and they weren't helpful at all for this
- I checked the resources section of VCAA's VCE economics page and they had a bunch of websites on there as appropriate including the rba


The rba describes hidden employment as:

Quote
Hidden unemployment occurs when people are not counted as unemployed in the formal ABS labour market statistics, but would probably work if they had the chance. For example, someone might have looked for work for a long time, given up hope and stopped looking, but still wish to work. (These people are sometimes referred to as ‘discouraged workers’.)

https://www.rba.gov.au/education/resources/explainers/unemployment-its-measurement-and-types.html

I would personally follow this description (well, I did for my macroeconomics unit at uni this sem).

This description captures both:
- people who are no longer employed and have stopped looking for work (e.g. due to discouragement)
- people who are employed but not working


I hope this helps!

BobStone

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Re: Definition of 'hidden unemployment'
« Reply #2 on: November 23, 2020, 07:32:21 pm »
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Hey bamboozled,

Another way of thinking about Hidden U/E is that it refers to potential workers (or a lost opportunity) who have become discouraged about their job prospects and are not actively seeking employment, thus they have left the labour force and are not included in unemployment statistics - typically occurs during a downturn such as now.

Wishing you all the best for the exam tomorrow!