Read the extract and answer the following question.

Unemployment is a situation where people who are willing and able to work do not find any work. Unemployment is a waste of human resource, as it reduces the productivity and income of the people and the country. Unemployment also affects the quality of life and well-being of the people, as it causes poverty, frustration, depression and social problems.

Unemployment can have various causes and effects, depending on the nature and duration of the problem. For example, some workers may face unemployment during certain seasons when their work is not in demand. Some workers may be employed but not fully utilized, resulting in low output and income. Some workers may have education but not the skills or experience required by the employers. Some workers may lose their jobs due to changes in technology, market conditions or consumer preferences. Some workers may experience unemployment due to fluctuations in the business cycle and economic activity.

In India, unemployment is a major problem, especially in rural and urban areas. In rural areas, there is seasonal and disguised unemployment due to the dependence on agriculture and lack of alternative employment opportunities. In urban areas, there is educated unemployment due to the mismatch between the supply and demand of skilled labour and the slow growth of industries and services. Unemployment in India affects the human capital formation and economic development of the country. Therefore, there is a need to create more employment opportunities in both rural and urban areas by promoting education, training, entrepreneurship, industrialization, diversification etc.

What is the meaning of disguised unemployment? Give an example.  (1 mark)


Answer by Student

Disguised unemployment is a situation where more people are employed than required , resulting in low productivity and income . An example from the extract is the dependence on agriculture in rural areas, where many people work on the same land without increasing the output.

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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.