Question

Answer the following questions

Explain the nature of rural unemployment.

Answer 1

Unemployment in village areas is known as rural unemployment. The nature of rural unemployment can be understood by studying the two main types of rural unemployment.
a. Seasonal unemployment- It refers to a situation where individuals remain unemployed for some part of the year. In other words, when a person is willing to work but is not able to find work for a certain season or period then the case is said to be seasonal unemployment.
b. Disguised unemployment- It is a situation where too many people are employed in an activity, such that removal of a few does not affects the total productivity. In such type, the marginal productivity of labour is zero.