Explain the concept of Disguised Unemployment

Question Explain the concept of Disguised Unemployment
Chapter Employment
Class  Class 12
Subject Economics (Indian Economic Development)
Category Indian Economic Development Class 12 Sandeep Garg Solutions

Question – Explain the concept of Disguised Unemployment

Answer –

Disguised unemployment is a situation when people are working but all of them are made to work less than their potential is called disguised unemployment.

For example: If only four persons are required to cultivate a farm but actually eight are working on that farm, in this case four persons are disguisedly unemployed.




Reasons for Disguised unemployment –

  1. As the size of the family increases, per person holding in the land decreases, which increases the disguised unemployment in rural areas.
  2. There is lack of job opportunities in rural area outside agriculture that’s why most of the families are still dependent on agriculture as their main source of living.
  3. We have joint family system due to which families work on the same family land, irrespective of the workers actually required on the land.

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