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Disguised Unemployment occurs when more than the necessary number of people are employed for the specified work. Disguised unemployment is found in agriculture because of the lack of employment opportunities elsewhere. Similarly disguised unemployment can be found in industry and offices as well. In agriculture we may find that all members of the family work. It is possible that 3-4 people can do a given work in the farm, but we find that the whole family of say 10 people doing the job. This may be because the excess people are not able to find employment elsewhere, so rather than remain unemployed they prefer to do the work along with others. This is known as disguised unemployment.
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