Give three examples of seasonal and disguised unemployment.
1. Seasonal Unemployment means the demand for a specific kind of work and workers change with the change in the season.
Example: in the agricultural sector where the demand for workers is more during harvesting than is required in other months in a year.
Example: Such as the demand for raincoats will be more in the monsoons than the other seasons and hence the need for the capital resources and the manpower in this industry will be more during this period.
2. Disguised Unemployment
The Disguised Unemployment refers to the work area where surplus manpower is employed out of which some individuals have zero or almost zero marginal productivity such that if they are removed the total level of output remains unchanged.
Example: Disguised unemployment is rampant in the farms where the number of labourers is more than the required amount.
Example: In a family business, for instance a garment shop where 8 people are working, but the workers required actually is only 4 who would do the work effeciently, in this case the 4 additional workers are disguisedly unemployed and hence even if they are removed it would not affect the sales or output of the shop