Question

What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Answer 1

Disguised unemployment is a condition in which people appear to be working, but their productivity is zero. That is, even if they are removed from their work, there is no influence on overall production. Disguised unemployment is prevalent in India’s agricultural industry, particularly in rural areas.

Examples:

1. In rural areas, this can be seen in the farming community, where all family members might be working on a farm even though so many hands are not required. They do so because of the lack of another job.
2. In urban areas, disguised unemployment can be seen in the service sector where painters, plumbers, repair persons and those doing odd jobs work but may not find daily or regular employment.