what's the difference between disguised unemployment …

Disguised unemployment

The situation of underemployment or disguised unemployment is a situation where people are apparently working but all of them are made to work less than their potential is called disguised unemployment. In this situation, the person considers himself employed but is actually not working and utilising his skills in the job.

Disguised unemployment in rural areas

In rural areas, we know that agriculture is the main source of income, this kind of unemployment situation is quite common here. For instance, a piece of land requires only three people to work on it and rather, five people are working on it, then the two extra people are said to be in a situation of disguised unemployment. Not in the field of agriculture we can also see this in small scale industries set up in a village. The labours in these small scale industries are in short of work as more employees are appointed and others face the situation of disguised unemployment.

Disguised unemployment in Urban areas

In urban areas, disguised unemployment is very often. For instance painters, plumbers, electricians are unable to find work on a daily basis and work way less than their potential. A person who has the energy to work in a huge firm but he cannot showcase his skills and perform better as there are many workers and work is distributed among all so he feels that there is nothing much to do.