What is meant by disguised unemployment? Explain with an explample from urban abd rural areas.?

Question

Answer

Hidden unemployment or disguised unemployment is a kind of unemployment where some people seem to be employed but are not. This usually occurs when there is over-employment in a particular sector. This basically means that on paper you can show employment but in reality, too many have been hired to do a job that can be done by fewer people.

When people can’t find jobs that employ their skills or education to full capacity, they still have bills to pay, so they settle for lesser responsibilities, known as “underemployment.”

For example, in the rural areas per agricultural sector, where ten members of a farmer family are employed on small farm plots when five are enough. Those extra 5 members are unemployed rather than being employed.

Another example is if you have one cow, you ideally need one person to milk it. If you hire 10 people to milk one cow, you just created disguised unemployment

Answer

Disguised Unemployment

Disguised unemployment refers to a situation where a person appears to be employed but is actually not contributing to the productive activities in the economy. It occurs when there are more workers engaged in a task than required, resulting in underutilization of labor resources. In disguised unemployment, removing one or more workers from a particular activity does not lead to any decrease in output.

Example from Urban Areas:

In urban areas, a common example of disguised unemployment can be observed in small retail shops or street vendors. Let's consider a small grocery store in a city that requires only two workers to efficiently manage the store's operations. However, due to the lack of alternative employment opportunities and the need for income, the store owner employs four workers. In this case, two workers are essentially disguisedly unemployed as their presence does not contribute to increased productivity or efficiency. Even if one or both of them were removed, the store's output and operations would remain unaffected.

Example from Rural Areas:

In rural areas, disguised unemployment can often be observed in agricultural activities. Let's take the example of a small farming family with five members. The family owns a small piece of land that can be cultivated efficiently by only three individuals. However, all five family members are engaged in farming activities, including sowing seeds, watering, and harvesting. In this scenario, two family members are disguisedly unemployed as their contributions are not required for the farm's optimal productivity. Even if they are withdrawn from the farming activities, the farm's output will not be affected.

Disguised unemployment is prevalent in both urban and rural areas due to various factors such as lack of alternative employment opportunities, lack of education and skill development, and the need for income generation. It indicates an inefficient allocation of labor resources and hinders overall economic growth. Addressing disguised unemployment requires measures such as skill development programs, creating new job opportunities, and promoting entrepreneurship to ensure optimal utilization of labor resources and enhance productivity.

Answer

Disguised unemployment is a kind of unemployment which there are people are visibly employed but are actually unemployed... In rural areas,this type of unemployment generally found in agricultural sector like -in a family of 9 people all are engadged in same agricultural plot....

Similar Class 10 Doubts

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

Describe Unemployment. Explain with an example each from the Urban and Rural Areas.

Which of the following is also known as disguised unemployment.?

Write a development goals for a rural urban unemployment youth?

Which of the following is also known as disguised employment?[2010, 2011 (T-1)]

Top Courses for Class 10View all

Science Class 10

Social Studies (SST) Class 10

Mathematics (Maths) Class 10

English Grammar Advanced

English Grammar Basic

Top Courses for Class 10

Top Courses for Class 10

Suggested Free Tests

Related Content

About Class 10

Class 10 Study Material

Class 10 All Subjects

NCERT Textbook Solutions

Other Classes

Important Links

Company