Question

What do you understant by disguised unemployment ? Example with an example each form the urban and rural areas?

Answer 1

The kind of under employment which is hidden in contrast to someone who does not have a job and is clearly visible as unemployed and hence it is called as disguised unemployment

Answer 2

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 But if 4 people are withdrawn from it there will be no reduction in output.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