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Question

This underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed. Hence, it is also called __________

The correct answer is
Disguised employment

Understanding Underemployment vs. Unemployment

The question contrasts two situations related to employment. One situation is being clearly visible as unemployed, meaning someone does not have a job and is actively seeking one. The other situation discussed is a type of underemployment, which is described as 'hidden'. Underemployment occurs when individuals are employed, but not in a capacity that fully utilizes their skills or working hours, or they are working in jobs that are below their skill level or offer insufficient pay.

Defining Disguised Employment

Disguised employment is a specific type of underemployment where individuals appear to be working, but their contribution to the production process is minimal or even zero. In such scenarios, if these workers were removed from their jobs, the total output would likely remain unchanged. This makes the unemployment or underutilization of labor effectively 'hidden' from plain sight, unlike traditional unemployment.

  • In disguised employment, people have jobs, but their productivity is very low.
  • Their removal from the workforce doesn't impact the overall production.
  • It represents a situation where more people are employed than are actually needed for the task.
  • This is a form of hidden underemployment because the surplus labor is not obvious.

Contrasting Disguised Employment with Open Unemployment

Open unemployment is straightforward: a person does not have a job and is visibly seeking one. In contrast, disguised employment is subtle. People might be engaged in an activity, perhaps in agriculture or small family businesses, giving the appearance of employment. However, they are not contributing effectively, and their labor isn't essential for the current level of output. Therefore, disguised employment is the term used for this specific, less obvious form of underemployment.

Given the description of 'hidden underemployment' contrasting with someone who 'does not have a job and is clearly visible as unemployed', the most fitting term is Disguised employment.

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Important Questions from Unemployment & Poverty

  1. ________ arises when the qualification of a person is NOT sufficient to meet his/her job responsibilities.

  2. Which of the following are regarded as the causes of poverty in India?

    (i) Low resources endowment

    (ii) Inequality in the distribution of income and assets

    (iii) Lack of access to social services.

  3. _____ unemployment attributable to the time required to match production activities with qualified resources.

  4. In 2005, an expert group was constituted by the Planning Commission to review methodology for poverty estimation. It was chaired by ____.

  5. ______ is a kind of unemployment in which there are people who are visibly employed but are actually unemployed or not utilizing their proper skills to its maximum level.

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