What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Disguised unemployment refers to a situation of underemployment where people are apparently working but all of them are made to work less than their potential. In this situation, everyone is working and none remains idle, but their labour effort gets divided. Each person is doing some work but no one is fully employed. This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed.
In rural areas, disguised unemployment is commonly seen in agriculture. For example, a small farmer like Laxmi owning about two hectares of unirrigated land dependent only on rain grows crops like jowar and arhar. All five members of her family work in the plot throughout the year because they have nowhere else to go. Everyone is working but no one is fully employed.
In urban areas, disguised unemployment exists in the service sector. Thousands of casual workers search for daily employment as painters, plumbers, repair persons and others doing odd jobs. Many don't find work everyday. Similarly, people pushing a cart or selling something may spend the whole day but earn very little because they do not have better opportunities.
Thus, disguised unemployment is hidden underemployment where people appear to be working but are not utilised to their full potential.
Explanation
This answer draws directly from the textbook context which defines disguised unemployment as underemployment where people are apparently working but made to work less than their potential. The rural example of Laxmi's family working on unirrigated land and the urban example of casual workers in the service sector are both explicitly mentioned in the provided text.