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What do you understand by disguised unemployment? Explain with examples from urban and rural areas.

disguised unemployment

Disguised unemployment is that state of partial unemployment. In which the contribution of labor force engaged in employment is zero or almost zero. The main reason for this is excessive shame in a business/industry. In contrast, they are forced to work in low-income businesses.

Or more workers are engaged in the business. If they are removed from this business and established in any other business and there is no decrease in the production of the original business, then this situation will go to the situation of disguised unemployment. In economic activity, more number of workers are engaged than required for production.

Disguised unemployment is that state of partial unemployment. In which the contribution of labor force engaged in employment is zero or almost zero. The main reason for this is excessive shame in a business/industry. In contrast, they are forced to work in low-income businesses.

Example-

Examples from urban areas-

In urban areas this type of unemployment is often found in small retail shops. In a shop, which requires only two people, if the owner employs two servants and two boys, one boy and two servants are disguisedly unemployed. . Because they are not needed in the shop.

Examples from rural areas-

A farmer has a small farm of 2 hectares. In which 2 people are enough to do the work. But 5 members of that farmer’s family are engaged in this field. If 3 people are removed from that work then the agricultural production Thus, out of 5 members engaged in the farm, three members are actually unhappy with the disguised unemployment.

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