What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas
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- 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
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- Disguised unemployment is also known as under employment.
- In this kind of unemployment, more than the required people are employed in a particular field.
- The removal of a few people will not affect the productive capacity of that field.
- In rural areas, disguised unemployment is generally found in agriculture.
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