Question

10. What do you understand by Disguised Unemployment? Explain with an example from

the urban and rural areas.

Answer 1

DISGUISED UNEMPLOYMENT IS A SITUATION,WHERE PEOPLE ARE APPARENTLY WORKING BUT ALL OF THEM ARE MADE TO WORK LESS THAN THEIR POTENTIAL OR CAPACITY.IN RURAL AREAS ,THIS CAN BE SEEN IN THE FARMING COMMUNITY WHERE ALL MEMBERS OF A FAMILY MIGHT BE WORKING ON A FARM EVEN MANY SO MANY HANDS ARE NOT REQUIRED. HEY DO SO BECAUSE OF LACK OF ANOTHER JOB.
IN URBAN AREAS,DISGUISED UNEMPLOYMENT CAN BE SEEN IN THE SERVICE SECTOR WHERE PAINTERS,PLUMBERS,REPAIR PERSONS ARE DOING ODD JOBS. MANY OF THEM DON'T FIND WORK EVERYDAY

Answer 2

Explanation:

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 But if 4 people are withdrawn from it there will be no reduction in output.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.