Disguised unemployment is a situation where workers are employed but have no work
Let’s consider the example of agriculture. This situation is quite prevalent in rural areas as agriculture is the primary source of income. If a crop requires only 3 people and 5 or 6 people are working on it, then the remaining people are in a state of disguised unemployment. Also, since agriculture is a seasonal profession, farmers might sit idle for a few months every year where their potential is not utilised.
Another example can be when professionals like plumbers, electricians and painters can’t find work on a daily basis and work less than their usual potential.
Explain Disguised Unemployment With an Example
Disguised unemployment is when workers have no or less work but are technically employed. Simply put, it is a state where people work way less than their potential but can be tagged as employed.
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