Poverty & Unemployment (Part – I)

Total Questions: 57

31. The SAARC Ministerial Conference on Poverty Alleviation was held in: [U.P.P.C.S. (Mains) 2002]

Correct Answer: (c) Islamabad
Solution:The SAARC Ministerial Conference on Poverty Alleviation was held in Islamabad, Pakistan in April, 2002. In this meeting the SAARC Finance/Planning Ministers, prepared a 'Plan of Action on Poverty Alleviation'.

At the 13th SAARC Summit (Dhaka, November 2005), the Leaders declared the decade of 2006-2015 as the 'SAARC Decade of Poverty Alleviation'. Under this agenda, the first Ministerial Meeting on Poverty Alleviation was held on 8 August, 2006 in Colombo. After that, second such meeting was held on 27 May, 2008 in Male, third on 5 April, 2013 in Kathmandu and fourth on 29 July, 2015 in Thimpu.

32. Main features of Indian social structure are: [U.P. R.O./A.R.O. (Mains) 2014]

(i) Excess population in villages

(ii) Various religions

(iii) Various Castes

(iv) Poverty

Select the correct answer from the codes given below:

Correct Answer: (a) (i), (ii) and (iii)
Solution:Rural society (more population in villages), complex society (ethnic, linguistic, religious and caste divisions), traditional society, multiculturalism etc. are the main features of Indian social structure, while poverty is part of the socio-economic structure.

India's economic transformation is a testament to its resilience and adaptability. From being considered a 'developing country" for decades, India has emerged as one of the world's fastest-growing major economies. The journey has been characterized by landmark reforms, robust GDP growth, and a shift from agrarian dominance to a diversified economy.

33. With reference to the Indian economy after the 1991 economic liberalization, consider the following statements: [I.A.S. (Pre) 2020]

1. Worker productivity (Rs. per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.

2. The percentage share of rural areas in the workforce steadily increased.

3. In rural areas, the growth in non-farm economy increased.

4. The growth rate in rural employment decreased.

Which of the statements given above is/are correct?

Correct Answer: (b) 3 and 4 only
Solution:According to NITI Aayog's paper "Changing Structure of Rural Economy of India: Implications for Employment and Growth 2017"The worker productivity in rural areas in 2004-05 was Rs. 32273 and in 2011-12, it was Rs. 101755.

While in urban areas in 2004-05 it was Rs. 120419 and in 2011-12, Rs. 282515. It means, worker productivity has increased for both rural and urban areas. Hence, statement 1 is incorrect.

The percentage share of rural areas in the workforce has steadily declined from 77.8% in 1993-94 to 70.9% in 2011-12. Hence, statement 2 is incorrect.

The share of agricultural activities in rural economy has declined from 57.0 percent in 1993-94 to 39.2 percent in 2011- 12, and growth in non-farm economy has increased. Hence, statement 3 is correct.

The growth rate in rural employment has decreased from 1.45% during 1994-2005 to (-) 0.28 between 2005-12. Hence, statement 4 is correct.

34. The rate of growth of employment in India has generally been of the order of: [U.P.P.C.S. (Pre) 1998]

Correct Answer: (a) 2 percent per annum
Solution:As per the question period, the rate of growth of employment in India was almost 2 percent per year.

The latest Economic Survey of India highlights significant improvements in employment and skill development. The survey provides data that aligns with the findings of the report that employment is on the rise in India. Key trends of Economic Survey include:

1. Improved Labor Market: Indian labour market indicators have improved significantly with the unemployment rate declining to 3.2 per cent in 2022-23.

2. Sectoral Employment: Agriculture remains dominant, employing over 45% of the workforce, though there is a gradual shift toward manufacturing and services.

3. Youth Employment: According to PLFS, youth (age 15-29 years) unemployment rate has declined from 17.8 per cent in 2017-18 to 10 per cent in 2022-23.

4. Female Workforce Participation: The female labor participation rate has steadily increased due to supportive policies.

5. Manufacturing Recovery: Factories employing over 100 workers experienced 11.8% growth between FY18 and FY22, indicating that larger industrial units are creating more jobs than smaller ones.

6. Wage Growth: During FY15-FY22, the wages per worker in rural areas grew at 6.9 per cent CAGR visà-vis a corresponding 6.1 per cent CAGR in urban areas. This growth reflects the rising demand for labor in rural industries such as construction and manufacturing, as well as public employment programs like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

7. EPFO Payroll Growth: The yearly net payroll additions to the EPFO have more than doubled from 61.1 lakh in FY19 to 131.5 lakh in FY24, driven by new job creation and greater formalization of employment.

8. Gig Economy: India's gig economy is expanding rapidly, with the workforce in this sector expected to grow to 2.35 crore by 2029-30.

9. Manufacturing and AI: The manufacturing sector remains shielded from automation, offering continued job growth opportunities.

35. Unemployment problem leads to poverty because: [Uttarakhand P.C.S. (Pre) 2010]

Correct Answer: (a) People living below poverty line increase
Solution:Unemployment means unutilized human resources which can generate income if employed efficiently, unemployment means lack of ways to generate income. Therefore, rise in unemployment leads to decrease in income and the people who are on the brink of poverty line falls below the poverty line. Hence problem of unemployment rises poverty.

Unemployment refers to the condition where individuals actively seek employment but are unable to secure a job. It serves as a crucial indicator of a nation's economic health. The unemployment rate, a widely used metric, is calculated by dividing the number of unemployed individuals by the total labour force.

Unemployment causes in India include reasons like caste-based discrimination, sluggish growth, and overpopulation. Seasonal agriculture, informal sectors, education and skill gaps, automation, and limited accessibility further hinder job creation, reflecting the complex dynamics of India's labour market.

Unemployment Rate in India, according to the latest Periodic Labour Force Survey (PLFS), declined to 3.2% in 2023-24, a significant improvement from 6% in 2017-18. However, it has been slightly increased as compared to the previous year, where the unemployment rate was 3.1%.

36. Name the Indian State which has the maximum percent age of educated unemployed persons? [Uttarakhand P.C.S. (Pre) 2006]

Correct Answer: (a) Kerala
Solution:KP. Kannah, an economist in Kerala, attributes the unemployment in Kerala to 'educated unemployment. This is a situation where a person cannot find a job suitable to his qualifications. Kerala has highest level of educated unemployed in India.

Unemployment refers to the condition where individuals actively seek employment but are unable to secure a job. It serves as a crucial indicator of a nation's economic health. The unemployment rate, a widely used metric, is calculated by dividing the number of unemployed individuals by the total labour force.

Unemployment causes in India include reasons like caste-based discrimination, sluggish growth, and overpopulation. Seasonal agriculture, informal sectors, education and skill gaps, automation, and limited accessibility further hinder job creation, reflecting the complex dynamics of India's labour market.

Unemployment Rate in India, according to the latest Periodic Labour Force Survey (PLFS), declined to 3.2% in 2023-24, a significant improvement from 6% in 2017-18. However, it has been slightly increased as compared to the previous year, where the unemployment rate was 3.1%.

37. Consider the following statements and select the correct answer using the code given below: [U.P.P.C.S. (Pre) 2006, U.P.P.C.S. (Mains) 2005]

Assertion (A): Educated unemployment increases with high rate of economic growth.

Reason (R): It happens only when there is lack of professional education.

Codes:

Correct Answer: (a) Both (A) and (R) are true and (R) is the correct explanation of (A)
Solution:With high rate of growth, unutilized resources come into play through creation of employment. In which, those who are educated according to employment get employed easily, but, those who are deprived of professional/skilled education, do not get employed due to lack of employment opportunities. Therefore, educated employment rises with lack of professional education.

Even though India's economy is growing at a fast pace, the 'higher educated' are reporting the highest rate of  unemployment against the national average. The brisk economic growth is not leading to enough jobs with less than one percent growth in employment creation.

38. In the following question, a statement followed by two assumptions numbered I and II are given. You have to consider the statement and the assumptions and decide which of the assumptions follows from the statement. [R.A.S./R.T.S.(Pre) 2013]

Statement: Unemployment allowance should be given to all uemployed Indian youth above 18 years of age. Assumptions:

I. Unemployed youth in India need monetary support.

II. The government has sufficient funds to provide allowance to all unemployed youth.

Correct Answer: (a) Only 1 follows
Solution:Only the first assumption balances the statement, not the second. Unemployed youth need financial help, so that they can fulfill their minimum requirements and carry out future targeted plans.

Present unemployment rate in India, in usual status, is 3.2%, as per latest Periodic Labour Force Survey, while in current weekly status, it is 4.9%. Starting from May 15, 2025, the Indian government will begin releasing unemployment data on a monthly basis, shifting away from the previous quarterly and annual reporting schedule.

The overall decrease in unemployment was mainly due to a slight drop in rural unemployment, which fell from 4.3% to 4.2%. Both rural men and women experienced small improvements. In contrast, urban unemployment stayed steady at 6.7%, with male unemployment rising slightly from 6.0% to 6.1%, while female unemployment declined notably from 8.9% to 8.2%.

39. Assertion (A): Roots of urban poverty lies in rural areas. Assertion (B): Level of education is normally low in rural areas. [U.P.R.O/A.R.O. (Mains) 2013]

Consider the above statements and find out the correct answer from the code given below:

Correct Answer: (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
Solution:People tend to migrate from rural areas to urban areas in search of jobs. On the other hand, the level of education is normally low in rural areas, this is why the people migrated from rural to urban areas get poor jobs, where they remain poor and also increase the concentration of poverty in urban areas. Therefore, Assertion (A) and Reason (R) both are true and Reason explicitly explains Assertion.

40. As per the number of employed males per thousand in urban areas in year 1999-2000, put the name of following States in descending order: [U.P.P.C.S. (Pre) 2003, U.P.U.D.A./.D.A.(Pre) 2001]

A. Meghalaya

B. Nagaland

C. Assam

D. West Bengal

Select the correct answer from the codes given below:

Correct Answer: (c) D, C, B, A
Solution:As per the question period, option (c) was the correct answer. In present scenario the data of the year 1999-2000 are unavailable and irrelevant. As per the updated data of PLFS Report for year 2022-23, Labour Force Participation Rate for age 15 years and above at Usual Status in urban areas of given States are as follows:
StateMale (%)Female (%)Persons (%)
Assam75.629.052.4
West Bengal77.027.452.2
Meghalaya71.140.354.1
Nagaland71.650.261.2

Hence, as per the latest available data, the correct descending order (for males) is: West Bengal > Assam > Nagaland > Meghalaya.