The type of unemployment discussed in the given statement is disguised unemployment. Yes, there is a paradox that in rural areas of India, more members are engaged in work, yet the gross income of family is generally low. It is because of following:
(i) Huge population: In rural areas, families have large number of members. So it is not possible for them to educate all. So they prefer to send all members to their farms instead of sitting idle. But production on farms does not increase by employing people who are not needed at all.
(ii) Limited knowledge of employment Opportunities: People in rural areas are generally not aware of employment opportunities other than farming. Due to this, their income is low.
(iii) Poverty: Poor people don't have sufficient means to engage in other small businesses. So they are forced to remain on their limited means. That is why, their income remains low.