Question

What type of unemployment is generally found in agricultural sector of India?
1. Voluntary unemployment
2. Disguised unemployment
3. Frictional unemployment
4. Structural unemployment

Answer 1

Correct Answer - Option 2 : Disguised unemployment

The correct answer is Disguised unemployment.

• Disguised unemployment is found in the agricultural sector of India.

 

• Disguised unemployment is also known as hidden unemployment.
• In this type of unemployment, some people seem employed but they are actually not.

• Voluntary unemployment
  • ​It is a situation when a person is unemployed because of not being able to find employment of his/her own choice.
• Frictional unemployment
  • It is the result of voluntary employment transitions within an economy.
  • Workers choosing to leave their jobs in search of new ones and workers entering the workforce for the first time constitute frictional unemployment.
• Structural unemployment
  • Farmers in emerging market economies are another example of structural unemployment.
  • Free trade allowed global food corporations access to their markets.
  • That put small-scale farmers out of business. They couldn't compete with the lower prices of global firms.