Q. 74.5( 4 Votes )

What do you understand by underemployment? Explain with one example each from the urban and rural areas.

Answer :

When people are employed but are allotted lesser work than their potential is not utilised properly. Example: in urban areas laborers are in mass searching for a job every day. Many of them do not find work every day. While many like street vendor spend the whole day working but earn very little. This is called as underemployment.

In rural areas the agriculture sector is overburdened. There are a lot of people ready to work on farms. So even if some people move out of the farm, the production will not be affected.

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