Question

what do you understand by underemployment? Explain with one example each from the urban and rural areas.​

Answer 1

Explanation:

Underemployment Definition - Investopedia Underemployment is a measure of employment and labor utilization in the economy that looks at how well the labor force is being used in terms of skills, experience, and availability to work. It refers to a situation in which individuals are forced to work in low-paying or low-skill jobs.

Answer 2

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 But if 4 people are withdrawn from it there will be no reduction in output.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