Explain the meaning of disguised unemployment with the help of any two suitable examples.
CBSE Class X Social Science LA (5 Marks)
Answers
Disguised unemployment : When the people are working in any field for more than their labour necessity. For example, where the need is for 4 labourers and 7 labourers are working, it means 3 labourers are suffering from disguised unemployment or under employment. In such a case, the production will not be affected even if the three extra labour do not work.
Examples :
(i) In rural India, agricultural sector is suffering from this type of unemployment. More than half of the workers in the country are working in primary sector mainly in agricultural activities producing only a quarter of GDP.
(ii) In urban areas, workers like painters, plumbers, repair persons, cart drivers do not find work every day or for the whole day.
Answer:
Definition: The Disguised Unemployment refers to the work area where surplus manpower is employed out of which some individuals have zero or almost zero marginal productivity such that if they are removed the total level of output remains unchanged.
Explanation:In other words, More workers employed on a single piece of work than actually required is called as the disguised unemployment. The persons who are employed and remains unproductive throughout the work is said to be disguisedly unemployed.
For example, Suppose a land can be harvested by ten persons effectively, but actually, 14 workers are engaged in similar kind of a job, then the marginal productivity of additional four persons will be zero as they will contribute nothing to the level of output. And, thus, the removal of these extra workers will lead to no change in the total productivity even without any change in the method of production.
The disguised unemployment is very much prevalent in the under developing and unorganized sectors of the economy, such as agriculture, where the population pressure is high, and the job opportunities are few. It is very difficult to track the disguised unemployment as it cannot be measured and shown in the official records of unemployment.