What do you understand by disguised unemployment .give example from rural and urban areas?
Answers
Disguised unemployment :
Disguised unemployment is also known as hidden unemployment.
It is the situation in which a person seems that he is employed but in actuall sense he is unemployed and not idle
If he or she is removed from the work then there would be no effect on production.
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Ex:
If in a family there are 7 members working on a small farm. If some of them are removed then there would be no effect on production.
Explanation:
Disguised unemployment is a kind of unemployment in which there are people who are visibly employed but are actually unemployed. This situation is also known as 'hidden unemployment'. In such a situation more people are engaged in a work than required. For example:
1. In rural areas, this type of unemployment is generally found in agricultural sector like - in a family of 9 people all are engaged in the same agricultural plot. But if 4 people are withdrawn from it there will be no reduction in output. So, these 4 people are actually facing disguised unemployment.
2. In urban areas, this type of unemployment can be seen mostly in service sectors such as in a family all members are engaged in one petty shop or a small business which can be managed by less number of persons.