Disguised unemployment refers to a situation in which people appear to be working but in reality their productivity is zero. That is, even if they are removed from their work, there is no effect on the total productivity. Disguised unemployment is found on a large scale in the agricultural sector in the villages of India. For example, more laborers work on a small piece of land because they do not have any other work. This creates a situation of disguised unemployment. Similarly, disguised unemployment is found in small shops and small businesses in cities.