What do you understand by disguised unemployment?

Explanation:

When people are visibly working but actually unemployed, it is called disguised unemployment.

In this situation more people are working than required workers.

If we remove some workers from production, the final productivity is not affected.

For example, disguised unemployment is generally found in the agricultural sector, where all family members are engaged in the field in rural areas.

Suppose ten family members are working in the same field. If we remove three from work, the final productivity is not affected.

In urban areas, a family holds a small business like a clothing shop, and four family members work in the same shop. If we remove one worker, the cloth sale is the same.

Final Answer:

Disguised unemployment means hidden unemployment, and more workers are working in the same field but not increasing final productivity.

For example, disguised unemployment is generally found in the agricultural sector, where all family members are engaged in the field in rural areas.

Suppose ten family members are working in the same field. If we remove three from work, the final productivity is not affected.

In urban areas, a family holds a small business like a clothing shop, and four family members work in the same shop. If we remove one worker, the cloth sale is the same