What is meant by disguised unemployment give an example?
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Answer:
Disguised unemployment is a type of unemployment where the workers seem to be employed but actually do not make a difference. Example, if ploughing of land needs 3 labours but 5 labour's are working, the extra 2 labours are in disguised unemployment.
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Disguised unemployment
People who appear to be employed but are actually unemployed are said to be experiencing disguised unemployment. This circumstance is frequently referred to as "hidden unemployment." In such a scenario, more individuals are working than is necessary.
For instance:
- In rural areas, this kind of unemployment is typically encountered in the agricultural industry, such as when a family of nine members is all working on the same agricultural plot. However, there won't be any change in output if 4 persons leave it. Thus, these 4 individuals are actually dealing with pretended unemployment.
- This sort of unemployment is most prevalent in the service industries in metropolitan areas, such as when a family employs all members in a single petty shop or small business that may be run by fewer people.
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