Disguised unemployment is observed in
Reveal answer
Fill a bubble to check yourself
Disguised unemployment is observed in
industrial sector
agricultural sector
manufacturing sector
insurance sector
Disguised unemployment occurs when more workers are employed than actually required, where marginal productivity of additional workers is zero or very low. This is most commonly observed in the agricultural sector in developing countries where family members appear to be working but are essentially surplus labor. In contrast, industrial and manufacturing sectors typically have clearer productivity measures and cannot sustain disguised unemployment.