What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Disguised unemployment is a kind of unemployment in which
there are people who are visibly employed but are actually unemployed. This
situation is also known as 'hidden unemployment'. In such a situation more people
are engaged in a work than required. For example:
1. In rural areas, this type of unemployment is generally found in agricultural
sector like - in a family of 9 people all are engaged in the same agricultural
plot. But if 4 people are withdrawn from it there will be no reduction in
output. So, these 4 people are actually facing disguised unemployment.
2. In urban areas, this type of unemployment can be seen mostly in service
sectors such as in a family all members are engaged in one petty shop or a
small business which can be managed by less number of persons.
Disguised unemployment is a kind of unemployment in which
there are people who are visibly employed but are actually unemployed. This
situation is also known as 'hidden unemployment'. In such a situation more people
are engaged in a work than required. For example:
1. In rural areas, this type of unemployment is generally found in agricultural
sector like - in a family of 9 people all are engaged in the same agricultural
plot. But if 4 people are withdrawn from it there will be no reduction in
output. So, these 4 people are actually facing disguised unemployment.
2. In urban areas, this type of unemployment can be seen mostly in service
sectors such as in a family all members are engaged in one petty shop or a
small business which can be managed by less number of persons.
