Unit 4 Ch 2 : Sectors of the Indian Economy — Social Studies STD 10 — Question

Disguised Unemployment is a situation of underemployment in which more than required person are engaged in a production activity. In this people who are visibly employed but are actually unemployed. This situation is also known as Hidden Unemployment.
For example:

1. In rural areas, this type of unemployment is generally found in agricultural sector like– in a family of 9 people all are engaged in the same agricultural plot. But if 4 people are withdrawn from it there will be no reduction in output. So, these 4 people are actually disguisedly employed.
2. In urban areas, this type of unemployment can be seen mostly in service sectors such as in a family all members are engaged in one petty shop or a small business which can be managed by less number of persons.