Question
What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas
Solution
Disguised unemployment is the situation of under employment, where people are apparently working but all of them are made to work less than their potential. This type of under employment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed.
Examples:
(i)In rural areas there are more people in agriculture that is necessary. Therefore, even if we move a few people out (from agriculture occupation), production will not be affected.
(ii)In urban areas there are thousands of casual workers in the service sector who search for daily employment where they may spend the whole day but earn very little.
