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What is the difference between disguised unemployment and seas... - Economics
Question
What is the difference between disguised unemployment and seasonal unemployment?
Answer
The difference between disguised unemployment and seasonal unemployment is as follows:
| Basis | Disguised Unemployment | Seasonal Unemployment |
| Meaning | A situation where more people are working than are actually required. | A situation where people are unable to find work during certain months of the year. |
| Visibility | The unemployment is "hidden." Everyone appears to be working, but their contribution is zero. | The unemployment is "visible." People are clearly without work during the off-season. |
| Productivity | If extra people are removed, the total production remains the same (Marginal productivity is zero). | Production is only affected because work stops during a specific period. |
| Occurrence | Mostly found in the agricultural sector among family members working on small plots. | Found in agriculture (sowing/harvesting seasons) and seasonal industries like ice cream or woolens. |
| Example | 5 members of a family working on a small farm that actually requires only 3 people. | Farm labourers who are busy during sowing and harvesting but have no work in between. |