What is the difference between Disguised unemployment and Disguised employment?

Disguised employment is often confused with disguised unemployment. However, both are distinct in referring to a different context. Disguised unemployment refers to worker productivity that is near zero.

It happens when too many employees fill the same position and do the same work redundantly. In economic terms, disguised unemployment contributes negatively to low productivity, where the overstaffing issue of filling the same role leads to job inefficiency and distribution.

In such instances, disguised unemployment does not directly impact the total economic activity in aggregate; therefore, it is classified as "disguised".

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