Question 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 people seem to be employed but are actually unemployed. This is the situation of underemployment, where people are apparently working but all of them are made to work less than their potential. This situation is also known as hidden
unemployment. Such situation arises when more people are engaged in a work than required. For example:



 * In rural areas, this type of unemployment is often seen in the agriculture sector. Here, if in a family five members are working on a same piece of land and that land only requires three workers then the extra two workers are said to be in a situation of disguised unemployment.

* In urban areas, this type of unemployment can be seen mostly in services sector where workers like painters, plumbers , electricians are unable to find work on a daily basis and work less than their potential.

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