Write any two types of Unemployment found in rural area
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1) Structural unemployment:
Basically India's unemployment is structural in nature. It is associated with the inadequacy of productive capacity to create enough jobs for all those able and willing to work. In India not only the productive capacity much below the needed quantity, it is also found increasing at a slow rate. As against this, addition to labour force is being made at a first rate on account of the rapidly growing population. Thus, while new productive jobs are on the increase, the rate of increasing being low the absolute number of unemployed persons is rising from year to year.
2) Disguised unemployment:
Disguised unemployment implies that many workers are engaged in productive work. For example, in Indian villages, where most of unemployment exists in this form, people are found to be apparently engaged in agricultural works. But such employment is mostly a work sharing device i.e., the existing work is shared by the large number of workers. In such a situation, even if many workers are withdrawn, the same work will continue to be done by fewer people.
It follows that all the workers arte not needed to maintain the existing level of production. The contribution of such workers to production is nothing. It is found that the very large numbers of workers on Indian farms actually hinder agricultural works and thereby reduce production.
Basically India's unemployment is structural in nature. It is associated with the inadequacy of productive capacity to create enough jobs for all those able and willing to work. In India not only the productive capacity much below the needed quantity, it is also found increasing at a slow rate. As against this, addition to labour force is being made at a first rate on account of the rapidly growing population. Thus, while new productive jobs are on the increase, the rate of increasing being low the absolute number of unemployed persons is rising from year to year.
2) Disguised unemployment:
Disguised unemployment implies that many workers are engaged in productive work. For example, in Indian villages, where most of unemployment exists in this form, people are found to be apparently engaged in agricultural works. But such employment is mostly a work sharing device i.e., the existing work is shared by the large number of workers. In such a situation, even if many workers are withdrawn, the same work will continue to be done by fewer people.
It follows that all the workers arte not needed to maintain the existing level of production. The contribution of such workers to production is nothing. It is found that the very large numbers of workers on Indian farms actually hinder agricultural works and thereby reduce production.
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