{"id":97506,"date":"2026-04-10T18:00:45","date_gmt":"2026-04-10T12:30:45","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=97506"},"modified":"2026-04-10T18:00:45","modified_gmt":"2026-04-10T12:30:45","slug":"disguised-unemployment","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/disguised-unemployment\/","title":{"rendered":"Disguised Unemployment, Reasons, Ways and Schemes to Reduce"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Disguised unemployment is a situation where more people are working in a job than actually needed. Even if some of them stop working, the total output does not change. This means that their contribution is almost zero, even though they appear to be employed. It is commonly seen in sectors like agriculture, where many family members work on the same piece of land without increasing productivity. In simple terms, it is hidden unemployment where people seem busy but are not fully utilized.<\/span><\/p>\n<h2><b>Reasons for Disguised Unemployment<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">There are several factors that lead to the existence of disguised unemployment:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>High population pressure: <\/b><span style=\"font-weight: 400;\">A rapidly growing population increases the number of people looking for work, especially in rural areas. This leads to excess labor in limited jobs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Dependence on agriculture:<\/b><span style=\"font-weight: 400;\"> In rural areas, agriculture is often the main source of income. Since land is limited, many family members work on the same land even when they are not all needed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Seasonal nature of work: <\/b><span style=\"font-weight: 400;\">Agricultural work is not available throughout the year. During off-seasons, people remain underemployed or do very little productive work.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Poverty and lack of capital:<\/b><span style=\"font-weight: 400;\"> Poor people often do not have enough money to start their own businesses or invest in better opportunities. This forces them to depend on limited resources and share work with others.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cheap labor availability<\/b><span style=\"font-weight: 400;\">: In labor-abundant economies, workers are available at low wages. Employers may hire more workers than necessary because it does not cost much.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lack of skills and education: <\/b><span style=\"font-weight: 400;\">Many people, especially in rural areas, do not have the skills required for better jobs. As a result, they remain stuck in low-productivity work.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Limited industrial development: <\/b><span style=\"font-weight: 400;\">When industries and other sectors do not grow fast enough, they fail to absorb surplus labor from agriculture.<\/span><\/li>\n<\/ul>\n<h2><b>Ways to Reduce Disguised Unemployment<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Disguised unemployment can be reduced by taking several practical steps:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Controlling population growth:<\/b><span style=\"font-weight: 400;\"> Managing population growth can help reduce pressure on available resources and jobs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Promoting skill development:<\/b><span style=\"font-weight: 400;\"> Providing education, vocational training, and skill-based programs can help people find better employment opportunities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Encouraging self-employment<\/b><span style=\"font-weight: 400;\">: Easy access to loans and financial support can help people start small businesses or become entrepreneurs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Developing rural areas:<\/b><span style=\"font-weight: 400;\"> Improving infrastructure, industries, and services in rural regions can create more job opportunities outside agriculture.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Shifting labor to other sectors:<\/b><span style=\"font-weight: 400;\"> Encouraging people to move from agriculture to industries and services can reduce excess labor in farming.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improving agricultural productivity: <\/b><span style=\"font-weight: 400;\">Using better technology and modern methods can increase output while reducing the need for excess labor.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Supporting small and medium enterprises (SMEs):<\/b><span style=\"font-weight: 400;\"> Growth of small businesses can create jobs and absorb surplus workers.<\/span><\/li>\n<\/ul>\n<h2><b>Government Schemes to Reduce Disguised Unemployment<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025<\/b><span style=\"font-weight: 400;\"> replaces Mahatma Gandhi National Rural Employment Guarantee Act and guarantees 125 days of rural employment with timely wages, a break during peak farming seasons, and a focus on infrastructure, livelihoods, water conservation, and climate-resilient work, along with better implementation and accountability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/pradhan-mantri-kaushal-vikas-yojana-pmkvy\/\" target=\"_blank\"><b>Pradhan Mantri Kaushal Vikas Yojana<\/b><\/a><span style=\"font-weight: 400;\"> focuses on improving the skills of the youth so that they can become more employable. Under this scheme, people are given training in various technical and non-technical fields based on industry needs. The main aim is to prepare individuals for better job opportunities in different sectors, thereby reducing the number of people stuck in low-productivity work such as agriculture.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Deen Dayal Upadhyaya Grameen Kaushalya Yojana<\/b><span style=\"font-weight: 400;\"> is specifically designed for rural youth from poor families. It provides skill training along with placement opportunities in different industries. The scheme aims to shift surplus labor from agriculture to more productive sectors by equipping them with the necessary skills and connecting them to formal employment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Deen Dayal Antyodaya Yojana \u2013 National Rural Livelihoods Mission<\/b><span style=\"font-weight: 400;\"> works towards reducing poverty by promoting self-employment and organization of rural poor into Self-Help Groups. It provides financial assistance, training, and support to start small businesses and income-generating activities. This helps people move away from disguised unemployment by creating alternative sources of income.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/pradhan-mantri-mudra-yojana-pmmy\/\" target=\"_blank\"><b>Pradhan Mantri Mudra Yojana<\/b><\/a><span style=\"font-weight: 400;\"> aims to provide financial support to small entrepreneurs and businesses by offering loans without the need for collateral. It encourages people to start their own ventures in areas such as manufacturing, trading, and services. By promoting entrepreneurship, it generates employment opportunities and reduces pressure on limited agricultural land.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>PM Street Vendor\u2019s AtmaNirbhar Nidh<\/b><span style=\"font-weight: 400;\">i is designed to support street vendors by providing them with small working capital loans. This scheme helps vendors restart or expand their businesses, especially after economic disruptions. It promotes self-employment in urban areas and provides a stable source of income to people who might otherwise remain underemployed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Garib Kalyan Rozgar Yojana<\/b><span style=\"font-weight: 400;\"> was introduced to provide immediate employment opportunities in rural areas, particularly for migrant workers who returned to their villages. The scheme focused on creating rural infrastructure and generating jobs in a short period of time, helping to reduce both open and disguised unemployment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Prime Minister\u2019s Employment Generation Programme<\/b><span style=\"font-weight: 400;\"> is a credit-linked subsidy scheme that encourages individuals to set up micro-enterprises. It provides financial assistance for starting new businesses in both rural and urban areas. By supporting entrepreneurship and small-scale industries, the scheme plays an important role in generating employment and reducing the burden on agriculture.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Disguised unemployment occurs when surplus workers add no output, common in agriculture. It reflects hidden joblessness due to low productivity and excess labor.<\/p>\n","protected":false},"author":29,"featured_media":97682,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[786],"tags":[6754,5104,5105],"class_list":{"0":"post-97506","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general-studies","8":"tag-disguised-unemployment","9":"tag-economy","10":"tag-economy-notes","11":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/97506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=97506"}],"version-history":[{"count":5,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/97506\/revisions"}],"predecessor-version":[{"id":97536,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/97506\/revisions\/97536"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/97682"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=97506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=97506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=97506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}