Question

what do you understand by disguised unemployment ? explain with the example of each of the urban and rural areas​

Answer 1

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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Answer 2

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.