Which of the following is NOT a direct way in which the government generates employment?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Private firms raising output with steel bought from a government company
The government creates jobs in two ways. Directly, it employs people itself. Indirectly, its rising output lets private firms grow and hire more.
Option (1) Employing people in its departments for administrative purposes — True. Government departments are a direct source of jobs.
Option (2) Running hotels and transport companies of its own — True. Government-run hotels and transport firms employ workers directly.
Option (3) Running industries owned by the government — True. Workers in government industries are employed directly.
Option (4) Private firms raising output with steel bought from a government company — False. These jobs come in private firms. They follow from the government firm’s output, so they are indirect employment.
NCERT (2026-27): “6.9 Government and Employment Generation … Their efforts can be broadly categorised into two — direct and indirect. In the first category, as you have seen in the preceding section, the government employs people in various departments for administrative purposes. It also runs industries, hotels and transport companies, and hence, provides employment directly to workers. When the output of goods and services from government enterprises increases, then private enterprises which receive raw materials from government enterprises will also raise their output and hence increase the number of employment opportunities in the economy. For example, when a government owned steel company increases its output, it will result in direct increase in employment in that government company. Simultaneously, private companies, which purchase steel from it, will also increase their output and thus employment. This is the indirect generation of employment opportunities by the government initiatives in the economy. …” |