Question

Which of the following types of unemployment is associated with Indian agriculture:

1. Seasonal Unemployment

2. Disguised Unemployment

3. Frictional Unemployment

Choose the correct code-

1. Only 1 and 2
2. Only 1 and 3
3. Only 2 and 3
4. All of above

Answer 1

Correct Answer - Option 1 : Only 1 and 2

The correct answer is Only 1 and 2.

• Unemployment is a stage where an individual is willing and searching for employment but fails to do so.
• The agriculture sector of India employs more than 50% of the total population and contributes around 16% to the GDP.

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• Seasonal unemployment takes place when people are unemployed during a particular season or time of the year when labour demand is lesser than usual. The agriculture sector suffers from it because of the seasonal nature of crops and farming seasons. Hence 1 is correct.
• Disguised unemployment occurs when more people are employed than actually required. The marginal productivity of labour is zero. In agriculture more number of people work in the field, the same amount of work can be finished with a lesser workforce. Hence 2 is also correct.
• Frictional unemployment occurs when a person is unemployed by his choice and he is seeking a better job opportunity, it is good for the economy as the worker is looking for a job where he can be more productive. It is not found in the agriculture sector. 3 is incorrect.
• Therefore the correct answer is 1 and 2 only.

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Other unemployments are-

• Structural Unemployment 
  • It refers to a situation that arises due to the change in the structure of an economy. For Example- when a labour-intensive economy turns into a capital intensive economy.
• Cyclical Unemployment-
  • Occurs due to deficiency ineffective demands from consumers which leads to falling in production and low demand for labour.