What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Q.10:- What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

 

Answer:-

Disguised unemployment is a kind of unemployment in which some people look like being employed but are actually not employed fully. This situation is also known as Hidden Unemployment. In such a situation more people are engaged in a work than required. For example in rural areas, this type of unemployment is generally found in agricultural sector, e.g., in a family of nine people who are all working in the same agricultural plot, even if four of them are withdrawn, there is no reduction in the output from the plot. So, these four people are actually disguisedly employed. In urban areas, this type of unemployment can be seen mostly in service sector. An example is of a family, whose all members are working in one shop or a small business, but which can actually be managed by a fewer number of members of the family.