Question

Explain disguised unemployment of both urban and rular areas?

Answer 1

In India 70% of the population is engaged in agricultural activities. As a result more labour is employed than required. If the extra labour is withdrawn then also the output remains the same. So the extra labour is remaining unemployed but is not aware of that. This is disguised unemployment in rural sector

Answer 2

Disguised unemployment is a kind of unemployment in which some people look like being employed but are actually not employed fully. This situation is also known as Hidden Unemployment. In such a situation more people are engaged in a work than required. For example in rural areas, this type of unemployment is generally found in agricultural sector, e.g., in a family of nine people who are all working in the same agricultural plot, even if four of them are withdrawn, there is no reduction in the output from the plot. So, these four people are actually disguisedly employed. In urban areas, this type of unemployment can be seen mostly in service sector. An example is of a family, whose all members are working in one shop or a small business, but which can actually be managed by a fewer number of members of the family.