'Ram is able to get work only for two hours in a day. Rest of the day, he is looking for work.' Is he unemployed ? What kind of job could person like Ram be doing ? Compare and analyse the sector-wise trends in employment, based on following information : Trends in Employment (Sector-wise)

Question

Accepted Answer

Ram is not unemployed but underemployed (disguised unemployment).

Explanation:
1. He gets work for only 2 hours a day
2. He is looking for work for the rest of the day
3. This indicates underemployment, not unemployment

Type of unemployment: Disguised unemployment
- Workers appear employed but their productivity is zero or near zero
- Common in agriculture where more workers are engaged than required
- Workers are engaged for formality but add little to output

This is a common feature of the Indian economy where:
- Agricultural sector has surplus labor
- Workers are engaged in family farms without productive work
- Urban areas also have disguised unemployment in informal sector

Solution: Need for employment generation and skill development to absorb surplus labor.