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Which one of the following statements is correct?
(a) Unemployment that is visible in agriculture sector is disguised unemployment.
(b) Seasonal unemployment appears in industries which are dependent on agriculture.
  • a)
    Only (a)
  • b)
    Only (b)
  • c)
    Both
  • d)
    None of the above
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Which one of the following statements is correct?(a) Unemployment tha...
The correct answer is Both.
  • Disguised unemployment is a phenomenon wherein more people are employed than actually needed.
  • It is primarily traced to the agricultural and unorganized sectors of India.
  • It occurs when part of the labor force is either left without jobs or operates redundantly, such as the productivity of the workforce is effectively zero. It is unemployment that has no impact on aggregate production.
  • Seasonal Unemployment is unemployment that occurs during certain seasons of the year.
  • Agricultural laborers in India rarely have worked throughout the year.
  • It appears in industries that are dependent on agriculture.
Additional Information
  • Unemployment occurs when a person who is actively searching for employment is unable to find work.
  • The most frequent measure of unemployment is the unemployment rate, which is the number of unemployed people divided by the number of people in the labor force.
  • Unemployment rate = (Unemployed Workers / Total labour force) × 100
  • Other types of Unemployment in India:
    • Cyclical Unemployment: It is the result of the business cycle, where unemployment rises during recessions and declines with economic growth.
    • Technological Unemployment: It is the loss of jobs due to changes in technology.
    • In 2016, World Bank data predicted that the proportion of jobs threatened by automation in India is 69% year-on-year.
    • Vulnerable Employment: It is one of the main types of unemployment in India.
      people working informally, without proper job contracts and thus don't enjoy any legal protection. These persons are deemed ‘unemployed’ since records of their work are never maintained.
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