What do you understanding by under employment? Explain with an example each from the urban and rural areas?
Answers
Underemployment simply means not having enough work to do, or not being used to full capacity in a job.
Urban areas - Seasonal industries hire workers for a short period of time,so the skilled workers now work as a part time job.
Rural areas - The poorer peasantry is efficient but large in number,so they are hired largely,paid very low.
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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 But if 4 people are withdrawn from it there will be no reduction in output.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.