Question : Which of the following is an example of disguised unemployment?
Option 1: A person is actively seeking employment but unable to find a job
Option 2: A person is employed but working fewer hours than desired
Option 3: A person is employed but their skills are underutilized
Option 4: A person is employed but their productivity is low
Correct Answer: A person is employed but their skills are underutilized
Solution :
The correct answer is
An example of disguised unemployment is (c) A person is employed but their skills are underutilized
Disguised unemployment refers to a situation where individuals are engaged in employment, but their contribution to the productivity of the workforce is minimal or could be reduced without affecting overall output. In disguised unemployment, more people are employed in a particular sector or occupation than required, resulting in the underutilization of their skills and abilities.
When a person is employed but their skills are underutilized, it means that their full potential is not being effectively utilized in their current job. This could be due to various reasons such as a lack of suitable job opportunities, limited access to training and development, or a mismatch between their skills and the requirements of the job.
It is important to address disguised unemployment by promoting skill development, improving job matching mechanisms, and creating opportunities for individuals to fully utilize their skills and contribute to productive employment.
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