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Concealed Unemployment in Ukrainian Industry: A Statistical Analysis
Maria Jeria Cáceres, September 2001

The difficulty in defining concealed unemployment is partly due to its inherent paradox: concealed unemployment may be said to describe the situation of the worker without work. This puzzle covers a whole cluster of actors, ranging from the worker to the employer who, without providing work yet maintains a relationship with the worker. Another paradox is related to the expression itself, because the need to evaluate the volume of concealed unemployment rises when concealed unemployment is getting more and more "visible" due to the number of people it is affecting.

According to the Enterprise Labour Flexibility Survey conducted in Ukraine in 2000, concealed unemployment reveals several different situations. In some cases, workers are obliged, by the administration, to leave their work. Most of these workers lose their pay, some are partially remunerated, and very few maintain a reasonable part of their pay. In others, workers are put on a "shortened regime" (shortened working week or reduced hours). Even maternity or parental leave can be seen as concealed unemployment when the leave is prolonged.

The following pages analyse not so much the situation of concealed unemployment, but rather its reasons, insisting on the different forms of employment flexibility within the enterprises, thus shifting the focus to the process at the interface between employed and unemployed.
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Created by LD. Approved by GS. Last update 15 November 2001