Disguised Unemployment Could be Traced in (A) Mining (B) Service Sector (C) Agriculture (D) Industry

By BYJU'S Exam Prep

Updated on: November 9th, 2023

Disguised unemployment could be traced in Agriculture. In disguised unemployment, the number of people engaged in the work is more than the required number of persons. If additional people will be removed, it will not affect the production rate. The same happens in the agriculture sector. Disguised unemployment can be seen in both rural and urban areas.

Traces of Disguised Unemployment

Disguised unemployment is also called hidden unemployment, partial unemployment, and underemployment. This type of unemployment occurs when workers are working unnecessarily so that work productivity is nearly zero, or it can occur when the workforce is gone.

The main features of disguised unemployment are as follows:

  • It does not affect the total output of the economy.
  • This is due to low productivity or when a large number of workers have left the job.
  • It is usually associated with non-wage labor or self-employed labor or when workers are working in family employment.
  • It is difficult to measure disguised unemployed labor individually.

Types of Disguised Unemployment

Agriculture being the primary sector in India provides jobs to more than 50% of the Indian population. At times, the number of employees tends to exceed the actual requirement which is referred to as ‘disguised unemployment’. It can be divided into further four types as follows:-

In other words, disguised unemployment can be referred to as ‘underemployment’ where the skills of the employed are underutilized.

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