Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Employment - Growth, Informalisation and Other Issues

Question:

Read the given case study and answer the following questions :

Agriculture is the primary occupation in rural India. It can't provide work to the rural population of the country throughout the year. In absence of multiple cropping & diversification of agricultural activities, a large population remains idle for almost half a year.

Indian is also suffering from disguised unemployment due to excessive pressure of population. In disguised unemployment it seems that everyone is employed but in reality, sufficient full time work is not available for all.

Unemployment problem in India is the result of inadequate employment planning, slow growth rate, backwardness in agriculture and industrial sector, population explosion etc.

Government should try to support skill and retraining activities to address the gaps between demand and supply of work skills and qualifications. Problem of unemployment is leading to fatal results for the economy and restricting India's growth rate.

Which of the following shows the phenomenon of jobless growth ?

Options:

Less employment less output

more employment more output

Less employment more output

More employment less output

Correct Answer:

Less employment more output

Explanation:

The correct answer is option (3) : Less employment more output

Jobless growth refers to a situation where an economy experiences economic growth (increase in output) without a corresponding increase in employment opportunities or reduction in unemployment rates. Less employment more output indicates that despite a decrease in employment (less people getting jobs), there is an increase in economic output. This scenario reflects jobless growth because the economy is producing more without absorbing more labor into productive employment.

"In the late 1990s, employment growth started declining and reached the level of growth that India had in the early stages of planning. During these years, we also find a widening gap between the growth of GDP and employment. This means that in the Indian economy, without generating employment, we have been able to produce more goods and services. Scholars refer to this phenomenon as jobless growth."