Disguised unemployment refers to a situation where individuals are employed, but their contribution to the overall productivity is minimal or zero. In other words, it implies the existence of surplus labor that is not contributing effectively to the output. This phenomenon is often seen in the agricultural sector, where there is an overabundance of labor relative to the available work. Let's understand the concept in detail:

1. Definition of Disguised Unemployment:
Disguised unemployment can be defined as a situation where more people are engaged in a particular task or industry than required, resulting in a low marginal productivity of labor. It is called "disguised" because even though individuals are employed, their work is not making a significant contribution to the overall output.

2. Absence of Alternative Employment:
One of the key characteristics of disguised unemployment is the absence of alternative employment opportunities. In many cases, individuals engage in low-productivity jobs because there are limited alternatives available. This lack of alternative employment options leads to the surplus labor working in unproductive roles.

3. Zero or Low Marginal Productivity of Labor:
Disguised unemployment arises when the marginal productivity of labor approaches zero. This means that additional labor inputs do not result in a proportional increase in output. In such cases, the presence of surplus labor does not contribute to the overall productivity and can even lead to inefficiencies.

4. Examples from the Agricultural Sector:
Disguised unemployment is commonly observed in the agricultural sector, especially in developing countries. In this context, it refers to a situation where more people are engaged in agricultural activities than required for efficient production. The excess labor does not contribute significantly to the agricultural output, leading to low productivity and inefficiencies.

5. Implications and Remedies:
Disguised unemployment has several implications for the economy, including underutilization of human resources, low productivity, and income disparities. To address this issue, policies should focus on diversifying the economy, creating alternative employment opportunities, and promoting skill development. By identifying sectors with potential for growth and providing necessary support, disguised unemployment can be reduced, leading to higher productivity and economic development.

In conclusion, disguised unemployment refers to a situation where individuals are employed but their contribution to the overall productivity is minimal or zero. It arises due to the presence of surplus labor and the absence of alternative employment opportunities. Disguised unemployment is characterized by low or zero marginal productivity of labor and is often observed in the agricultural sector. Addressing this issue requires policy interventions focused on creating alternative employment opportunities and promoting skill development.