Question

What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Answer 1

Disguised unemployment is a form of underemployment where one has a job, but the work is divided. It is not apparent compared to someone without a job who is unemployed.

In rural areas, this can be seen in the farming community, where all family members might be working on a farm even though so many hands are not required. They do so because of the lack of another job.

In urban areas, disguised unemployment can be seen in the service sector where painters, plumbers, repair persons and those doing odd jobs work but may not find daily or regular employment.