Question

What do you understand by disguised unemployment ?explain with an example from rural and urban area?

Answer 1

DISGUISED UNEMPLOYMENT :

➡️Sometimes, more than required number of workers are involved in an occupation. Even if a few Labourers are removed from work, the total production remains the same.

Answer 2

Let us understand this type of unemployment with an example:-

Suppose a farmer named Ram has a field of 2hectare. He has a family of 5. All the member of the family work on the field and grow rice crop. But if we remove two from working on the field then we see that it does not affect the production on the field. This means that the people are seen to employed but they are actually they are unemployed. They do not affect the production in their jobs and less number of person can do the jobs and come out with the same number of production. While the other can find other work anywhere else and an increase in the income of the family.(This was an example of rural disguised unemployment)

So we can define disguised unemployed as the unemployment in which the people seem to employed but there is no need for them to work as they are not affecting the production and are not helping in the increase of income.

Now let us take another example of an urban area. In this case, there is a factory owner who has employed 70 workers in his factory for doing manual work. But if we see there is no need for 70 workers. They are not affecting the production of the factory. The same amount of work without affecting the production can be done by 50 workers. So here we can see that 70 workers are employed but they are actually unemployed because the other 20 extra workers are getting fewer wages and also cutting the wages of other workers. So this is also an example of disguised unemployment.

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