Disguised unemployment generally means

The correct answer is the marginal productivity of labour is zero.

Key Points

• Disguised Unemployment:
  • It is a phenomenon wherein more people are employed than actually needed.
  • It is primarily traced in the agricultural and the unorganised sectors of India​.
  • The marginal productivity of labour is zero.
• Hence the correct option is 3.

​​​Additional Information

• Seasonal Unemployment:
  • It is unemployment that occurs during certain seasons of the year.
  • Agricultural labourers in India rarely have worked throughout the year.
• Structural Unemployment:
  • It is a category of unemployment arising from the mismatch between the jobs available in the market and the skills of the available workers in the market.
  • Many people in India do not get the job due to a lack of requisite skills and due to the poor education level, it becomes difficult to train them.
• Cyclical Unemployment:
  • It is the result of the business cycle, where unemployment rises during recessions and declines with economic growth.
  • Cyclical unemployment figures in India are negligible. It is a phenomenon that is mostly found in capitalist economies.
• Technological Unemployment:
  • It is the loss of jobs due to changes in technology.
  • In 2016, World Bank data predicted that the proportion of jobs threatened by automation in India is 69% year-on-year.
• Frictional Unemployment:
  • Frictional Unemployment also called Search Unemployment, refers to the time lag between the jobs when an individual is searching for a new job or is switching between the jobs.