The correct option is People are apparently working but all of them are made to work less than their potential..
Explanation
Disguised Unemployment is an economic situation where more people are employed in a task than are actually required. In technical terms, the marginal productivity of labor for these surplus workers is zero. This implies that if these individuals were removed from the workforce, the total output would remain unchanged.
Option Analysis
- People are searching for jobs but are unable to find any. is incorrect: This describes Open Unemployment, where individuals are actively searching for work and are willing to work at the prevailing wage rate but are unable to find employment.
- People are apparently working but all of them are made to work less than their potential. is correct: This accurately describes Disguised Unemployment. It is a form of underemployment where workers appear to be employed, but their potential is not fully utilized. It is most common in the agricultural sector of developing economies (like India), where entire families work on a single plot of land even though fewer hands could achieve the same yield.
- Workers are employed in the unorganised sector without social security. is incorrect: This refers to employment in the Unorganized or Informal Sector. While disguised unemployment often exists within this sector, the definition provided focuses on the lack of social security rather than the surplus nature of the labor.
- People are working in jobs that do not match their educational qualifications. is incorrect: This describes Underemployment (specifically related to educational mismatch) or Educated Unemployment. In this case, the worker is productive, but their skills are underutilized relative to their qualifications.
Key Takeaway: The defining characteristic of Disguised Unemployment is that the marginal productivity of the additional worker is zero.