If labour is employed in a job but is not actually utilised for the production of goods and services, it is known as:
Show answer & explanation
Correct answer: B
Explanation
The Correct Answer is option 2 i.e. Disguised Unemployment.
Disguised unemployment occurs when more people are employed than actually needed, and some of them contribute nothing to the output.It is common in agriculture or informal sectors, especially in developing countries like India.Even if these surplus workers are removed, the total production remains unaffected — meaning their employment is only 'disguised' as productive.
Incorrect Options:
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Urban unemployment – Unemployment found in cities due to lack of jobs, not related to hidden surplus labour.
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Seasonal unemployment – When jobs are available only during certain seasons (e.g., agriculture, tourism).
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Educated unemployment – Occurs when educated individuals are unable to find jobs matching their qualifications.