Causes of disguised unemployment? What are the measures to remove it .
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When more people are working than its requirement then its called disguised unemployment . So even if we remove few people from the job the process of production will not be affected .
If more employment is created then this type of unemployment can be reduced :
● if more dams are built and canal water is provided to all the small farmers a lot of unemployment can be generated in agricultural sector .
● providing cheap credit facilities and crop insurance can result in more employment . Etc
■ Example of disguised unemployment is :
▪Suppose a landlord comes and hires one or two members of a family to work on his land . The family is now able to earn some extra income through wages .since he does not need 5 people to look after that small plot ,if he removes 2 person it will not affect its production on his farm this is disguised unemployment in rural areas ...
▪there are thousands of casual workers in the service sector in urban area who search for daily employment they are employed as plumber repair person etc odd jobs .many of them do jot find work everyday .similarly we find other people of the service sector on the street pushing cart where they spent whole day and earn less this is disguised unemployment in urban area .
Causes of disguised unemployment are:
Employment in rural areas are seasonal and whole family is indulged in the farming or agricultural process . After the season they search for the work but doesn't get it due to disguised unemployment ..
When more people are kept than required then wages are low and they can be unemployed anytime
There is job insecurity for all in this type of employment because highly skilled labours are preferred first
The work which can be done by lesser number of people is done by using more people with low payment
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