what is disguised unemployment

Disguised unemployment refers to a situation where more people are employed than are actually needed for production. It's a form of unemployment that is not immediately apparent and is often seen in developing countries, particularly in the agricultural sector.

Here's a step-by-step explanation:

1. Disguised unemployment occurs when the number of workers in a job is more than the required number. For example, if a field requires three people to work on it and instead five people are working, the extra two people are considered to be in disguised unemployment.

2. This type of unemployment is often seen in the agricultural sector of developing countries where the whole family may work in the fields even though their labour is not needed.

3. The term "disguised" is used because it's not immediately apparent that these extra workers are not needed. They may appear to be working and may even be earning a wage, but their removal would not affect the overall productivity.

4. Disguised unemployment is a serious issue because it indicates inefficiency in the use of labour resources. It also means that these workers are not contributing to economic growth as much as they could be if they were employed in a job where their labour was actually needed.

5. Solutions to disguised unemployment often involve improving education and skills training to enable workers to move into sectors where their labour is needed, and developing industries to create new jobs.