A big problem for every person is when people appear to be employed but in reality they are unemployed. In this situation, more people than necessary are engaged in the same work. Even if those people are removed from that work, there is no effect on the production. This situation is also called hidden or disguised unemployment.

Underemployment Underemployment In India it was expected that employment opportunities would increase in all the three sectors (primary, secondary, tertiary) and unemployment would end gradually, but this could not happen. As expected, neither the secondary and tertiary sector has been developed nor proper employment opportunities have been created. It is a matter of concern that lakhs of people are under-employed in India. This situation is generally found in the agriculture sector. Apart from this, under-employment can happen in other sectors. Like casual workers working in the service sector in cities. If these people were working at some other place, then the income earned by them increases their total family income. Thus, on the basis of the conclusion, it can be said that we should think about underemployment because it reduces the income earning capacity of the population, which increases the low standard of living and poverty.