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Q18- What is the meaning of disguised unemployment ? state two causes ofdisguised unemployment

Answer»

Disguised unemployment exists where part of the labor force is either left without work or is working in a redundant manner where worker productivity is essentially zero. An economy demonstrates disguised unemployment when productivity is low and too many workers are filling too few jobs.

The causes for such an unemployment are many. Few of which are: 1)Population growth: High growth in population leads to surplus labour, especially in the rural areas.2)Limited skills and knowledge about better opportunities: Disguised unemployment is also caused by limited skills of the labourers.



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