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 type of unemployment is referred to in first paragraph ?

Options:

Disguised Unemployment

Seasonal Unemployment

Structural Unemployment

Frictional Unemployment

Correct Answer:

Seasonal Unemployment

Explanation:

The correct answer is option (2) : Seasonal Unemployment

Seasonal Unemployment : This type of unemployment occurs when individuals are unemployed during certain seasons of the year, typically in rural areas where agriculture is the primary occupation. It happens because agricultural activities are seasonal and do not provide continuous employment throughout the year, leading to periods of idleness for a significant portion of the rural population during off-seasons.

Disguised unemployment refers to a situation where more people are engaged in an activity than necessary. In other words, the productivity of labor is lower than it could be with the same amount of labor input. This often occurs in agriculture where too many people are employed for the amount of land available or the tasks needed, leading to inefficiency. Despite seeming fully employed, many individuals may not contribute significantly to production.

Structural Unemployment: Structural unemployment arises due to a mismatch between the skills and location of job seekers and the requirements and locations of available job openings. It can be caused by changes in technology, shifts in industries, or changes in the geographical distribution of jobs. Addressing structural unemployment often requires retraining and skills development.

Frictional Unemployment : This type of unemployment occurs when individuals are temporarily between jobs. It is often the result of people voluntarily leaving their jobs to seek better opportunities or new graduates entering the job market. Frictional unemployment is typically short-term and can be considered a natural part of a dynamic labor market.


Seasonal Unemployment:Seasonal unemployment occurs when individuals are temporarily out of work due to seasonal
fluctuations in demand for labor. For example, agricultural workers may be unemployed during the off-season, and retail workers may experience this during the post-holiday period.