What do you mean by the terms- disguised unemployment and
underemployment? Give examples.
Answers
Answer:
The situation of underemployment is referred to the situation when people are apparently working but all of them are made to work less than their potential is called disguised unemployment. In this case, the person considers himself employed but is actually not working.
Example
(i) In rural areas, where agriculture is the main source of income, this kind of unemployment can be seen often. If a piece of land requires only three people to work on it and instead five people are working on it, then the two extra people are said to be in a situation of disguised unemployment.
(i) In cities and urban areas, disguised unemployment is seen when painters, plumbers, electricians are unable to find work on a daily basis and work way less than their potential.
Explanation:
Underemployment
The condition in which people in labor force are employed at less than full time or require regular job or at jobs inadequate with respect to training or economic need.
ex - Part -time engineer is underemployed.
Disguised Unemployment
Disguised unemployment exists when part of the labor force is either left without work or working in a redundant manner ,where worker productivity is zero and does not contribute to output.
ex - If a job requiring 5 people is done by 9 people 4 is disguised unemployment.This is so in many govt departments.
Extra Information
✓✓When more than required numbers of people are engaged in productive activities, it is called underemployment. In this case, work done by a person is hidden and even if the person is removed from employment, the production will remain the same. It is also called disguised unemployment.
✓✓The situation of underemployment or disguised unemployment is a situation where people are apparently working but all of them are made to work less than their potential is called disguised unemployment.