In which type of unemployment a person is apparently employed but his contribution to the production is almost nil ?

Question

Accepted Answer

Disguised unemployment is the correct answer for the type of unemployment where a person is apparently employed but his contribution to the production is almost nil. Here is a detailed explanation:

1. **Explanation for Option 2 (Disguised Unemployment):**
   - Disguised unemployment occurs when more people are employed in a job than are actually needed. This is common in agricultural sectors or family-run businesses where the workforce exceeds the actual requirement for the production process. As a result, even if some workers are removed, the total output remains unchanged, indicating that their contribution to production is negligible. This type of unemployment is often hidden, as the individuals appear to be working but are not contributing effectively to productivity.

2. **Why Other Options are Incorrect:**

- **Option 1 (Chronic Unemployment):**
     - Chronic unemployment refers to a long-term and persistent lack of job opportunities in an economy. It is often due to structural issues, such as a mismatch between the skills of the workforce and the demands of the job market. Unlike disguised unemployment, chronic unemployment does not involve individuals being employed with negligible productivity; rather, it involves individuals who are unable to find employment at all.

- **Option 3 (Structural Unemployment):**
     - Structural unemployment arises from changes in the economy that create a mismatch between the skills of workers and the needs of employers. This can be due to technological advancements, changes in consumer demand, or other economic shifts. Structural unemployment is not about having excess workers with no contribution; it is about having workers whose skills do not match available jobs.

- **Option 4 (Seasonal Unemployment):**
     - Seasonal unemployment occurs when people are unemployed at certain times of the year because their work is dependent on the season. For example, agricultural workers may be unemployed during non-harvest periods. This type of unemployment is not related to having more workers than needed for a task, but rather to the cyclical nature of certain industries.

In conclusion, disguised unemployment is the correct answer because it specifically describes a situation where individuals are employed but do not contribute to production, which is not the case with the other types of unemployment listed.