Question
Download Solution PDF.............. means even though the workers have got jobs, their full productivity is not being utilized. Therefore, even if some workers are removed from such work, the total production will not decrease significantly.
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is - Disguised unemployment
Key Points
- Disguised unemployment
- Occurs when more workers are employed than required for a specific task or activity, leading to underutilization of labor.
- It is characterized by workers who appear to be employed but contribute little or no additional productivity to the total output.
- Even if some workers are removed from such work, the total production does not decrease significantly.
- Commonly found in agricultural sectors, especially in developing countries where farming employs excessive labor.
Additional Information
- Precarious unemployment
- Refers to situations where workers face unstable or insecure employment, often with low wages and few benefits.
- Unlike disguised unemployment, precarious unemployment directly impacts the worker's economic security.
- Footloose labor
- Describes labor that is mobile and can move freely to different locations, often associated with industries that do not depend on specific geographic resources.
- Immersive labor
- A term not commonly used in economics; it does not relate to disguised unemployment.
- Impact of disguised unemployment
- Reduces overall economic efficiency as resources (labor) are not optimally utilized.
- Often signals a need for structural reforms in the economy to create more productive employment opportunities.
Last updated on Jun 9, 2025
-> Maharashtra SET 2025 hall ticket is out on the official website on 9th June 2025.
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