Question

Disguised unemployment refers to ___________.

• A. people with no job
• B. more people employed for a job where less can fit in
• C. unemployment among women
• D. unemployment of people over sixty years of age

Answer 1

Answer: (B)

more people employed for a job where less can fit in

Disguised unemployment is either when the workforce is unemployed or when their contribution to the output is zero.

That is unemployment does not affect the output.

For example, in Indian villages, where most of the unemployment exists in this form people are found to be apparently engaged in agricultural activities. If in a situation even if many workers are withdrawn, the same work will continue to be done by fewer people. It follows that all the workers are not needed to maintain the existing level of production. The contribution of such labourers to production is thus zero or near zero.