Which of the following type of unemployment is there in rural areas?

I. Seasonal Unemployment

II. Disguised Unemployment 

This question was previously asked in
SSC GD Constable (2022) Official Paper (Held On : 24 Jan 2023 Shift 1)
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  1. Both I and II
  2. Only I
  3. Neither I nor II
  4. Only II

Answer (Detailed Solution Below)

Option 1 : Both I and II
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Detailed Solution

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The correct answer is Both I and II.Key Points

  • Seasonal unemployment is prevalent in rural areas due to the dependence on agriculture, which is a seasonal activity.
  • Disguised unemployment is also common in rural areas, where more people are engaged in agricultural activities than required, resulting in low productivity.
  • Seasonal unemployment is more prevalent in areas where there is a dependence on natural resources, such as forestry, fisheries, and mining.
  • Disguised unemployment is a situation where people appear to be employed, but their contribution to the economy is minimal.
  • Structural unemployment and frictional unemployment are not common in rural areas, as there is less job mobility and fewer industries.

Additional Information

  • Structural unemployment is caused by a mismatch between the skills of workers and the requirements of employers.
  • Frictional unemployment is a temporary unemployment situation that occurs when people are in the process of changing jobs.
  • Rural areas are also affected by cyclical unemployment, which is caused by economic fluctuations.
  • Disguised unemployment is prevalent in the informal sector, where people are engaged in activities that are not recognized by the government or are not registered.
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