It is statistically difficult to measure the third type of underemployment. Underemployment as well as unemployment is counted in U.S. government reports in order to provide a truer picture of the health of the job market. Unemployment is a situation when a person actively searches for a job and is unable to find work.

  • Distinguish between open unemployment and disguised unemployment.
  • They become unemployed after the season is over.
  • This mammoth task of measuring GDP is undertaken by the Central Government Ministry.
  • The second type of underemployment is invisible underemployment.

[CBSE Sept. 2010]
Ans.Tertiary activity consists of all service occupations. Transport, communication, trade, health, education and administration are important examples of tertiary activities. These tertiary activities help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a good, but they are an aid or a support for the production process. The activities of the tertiary sector are different as these are the activities that help in the development of the primary and secondary sectors.


Employment is the primary source of income for a person and hence, it is the source of economic growth. It is considered a lagging economic indicator. High underemployment suggests a low GDP and low demand for labor.

Activities in this sector do not produce any goods. This sector produces services that act as aid and support to the Primary and Secondary sectors. The sum of production in the three sectors gives us the GDP (primary + secondary + tertiary).

Weaknesses of the Unemployment Rate

The period during and after a recession, when companies downsize and lay off qualified workers, is characterized by underemployment. Underemployment jumped to its highest levels in the recession resulting from the global outbreak crisis. The keyboard uses the ISCII layout developed by the Government of India. It is also used in Windows, Apple and other systems. There is a base layout, and an alternative layout when the Shift key is pressed. If you have any questions about it, please contact us.

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This is not the same as unemployment, which refers to people who are not currently employed at all. The BLS compiles six different unemployment rates labeled U-1 through U-6. [CBSE Sept. 2010, 2011, 2012]
Ans.(i) This scheme targets the Scheduled Castes, Scheduled Tribes and the poor women, who suffer from poverty. (ii) To provide livelihood to the people below the poverty line, this scheme guarantees 100 days of wage employment in a year to every rural household in the country. (iii) Under this scheme, the Gram Panchayat after proper verification will register households, and issue job cards to registered households.

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When a person is forced to take up jobs that do not match their skills, they typically receive an income that is below their pay grade. With inadequate income, families do not consume as many goods and services as before. The second type of underemployment is invisible underemployment.

​(iii)​ All services, that enable us to pursue primary and secondary activities are listed as tertiary activities. Once manufactured, the vehicles are sold in the market by various agencies. These vehicles help all the sectors to carry out their processes. Includes all such activities which support primary and secondary sector by providing services, e.g., banking, communication, transportation, etc.

If a person gives up looking for employment, whether on a short- or long-term basis, they are no longer counted until resuming the pursuit of employment options. This can count as disguised unemployment when the person wants to find work but has stopped looking due to being demoralized by a long search. Another way to think about disguised unemployment is to say that people are employed but not in a very efficient way. (iii)​ There are several things needed by society as a whole, some of these need spending large sums of money which is beyond the capacity of the private sector and so they are provided by public sector. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives the Gross Domestic Product (GDP) of a country.

Since most of the natural products we get, are from agriculture, dairy, fishing, forestry, this sector is also called sector for agriculture and related activities (stone quarrying, animal husbandry, etc.). When certain industries no longer need workers, people with the skills that match that industry may be forced to accept low-income jobs that don’t fully utilize their skills. For example, the decline of the coal industry has forced many former mining employees to look for work in other industries.

Like the above-mentioned schemes, there are various other schemes launched by the Government of India in order to address the social and economic welfare of the citizens and the nation. The links of related schemes launched by the government are given below. The unemployment rate again declined to 6.5 per cent in January 2021 from 9.1 per cent in December 2020, while the employment rate surged to 37.9 per cent as compared to 36.9 per cent.

With underemployment, workers who no longer work in their chosen field lack the ability to update their skills with on-the-job training. Some people acquire skills in different industries while others drop out of the workforce altogether. This phenomenon is commonly known as structural unemployment. Invisible underemployment refers to people who work in jobs that don’t utilize their skills – such as a financial analyst working as a waiter in a restaurant. This type of underemployment is very difficult to measure and requires extensive research and surveys. Visible underemployment comprises employees who work fewer hours than what is considered normal in their field or industry.

The unemployment rate in India, amidst lockdown and restrictions on mobility, is 12.81% as of June 8th 2021 based on the data provided by the CMIE. (v)​ Another way to solve this problem is to identify, promote and locate industries and services in the semi-rural areas where a large number of people may be employed. (i) The government can spend some money or banks can provide loans to construct wells, etc., which will reduce the dependency of farmers on rains, and they will be able to grow two crops a year. (i) ​Loans should be provided to the small farmers by the government or banks to buy seeds or develop irrigation facilities, etc. to enable them to grow 2-3 crops in a year. ​(iv)​ The government/banks can provide a loan at cheap rates to improve irrigational facilities. ​(iii) ​If an applicant is not employed within 15 days, he/she is entitled to daily unemployment allowance.

(iii) This type of unemployment is also known as disguised unemployment. Another group that may be included is those who are ill or considered partially disabled. While they may not be actively working, they may be capable of being productive within the economy.

(ii)​ By promoting cottage and handicraft industries to employ the villagers. By establishing processing of vegetables and fruits units. (iv)​ Under this scheme, the Gram Panchayat after proper verification will register households, and issue job cards to registered households. ​(iv) ​The governments have to establish Central Employment Guarantee Funds and State Employment Guarantee Funds for the implementation of the scheme.