Question

Define disguised unemployment.

Answer 1

When more persons are working in a job than actually required, the situation is termed as disguised unemployment. If some workers are withdrawn from here, total production remains unchanged. For example, if 20 agricultural workers are engaged in a work, 6 of them are withdrawn and the total production does not fall, then these 6 will be called disguisedly unemployed. This kind of unemployment is called ‘disguised’ in the sense that the unemployment is invisible. Apparently, all the workers seem to be engaged in their activities. But they are partially employed. This makes them disguisedly unemployed.