Disguised unemployment generally means

Disguised unemployment is a phenomenon where more people are employed in a task than are actually required. It is characterized by a situation where the marginal productivity of labour is zero [2]. This means that if a few workers are removed from the production process, the total output remains unchanged because their contribution was redundant [2]. This type of unemployment is particularly prevalent in the agricultural sector of developing economies like India, where large family sizes and a lack of alternative vocational avenues lead to excessive labour pressure on limited land [3]. While these workers appear to be employed, they are not working to their full potential, and their presence does not enhance the overall economic output [4]. Consequently, while the productivity of individual workers may be low, the technical definition hinges on the fact that the additional labour adds nothing to the total product [1].

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > Different types of Unemployment: > p. 273
2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > 2. Disguised Unemployment > p. 50
3. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > DISGUISED UNEMPLOYMENT IS NOT PREVALENT IN THE AGRICULTURAL SECTOR ALONE. ELUCIDATE > p. 51
4. [4] https://www.investopedia.com/terms/d/disguised-unemployment.asp