Poverty & Unemployment (Part – I)

Total Questions: 57

51. In India which one of the following collects and publishes the unemployment Index? [U.P. P.C.S. (Mains) 2014]

Correct Answer: (c) N.S.S.O.
Solution:The All India Employment and Unemployment Surveys con- ducted and published by the National Sample Survey Office (NSSO) are the primary source of various indicators of labour force at National and State levels, which are used for planning and policy formulation by various Government organizations as well as researchers. It is to be noted that NSSO merged with the Central Statistical Office (CSO) to form the National Statistical Office (NSO) in 2019.

52. The growth rate of which one of the following sectors has very low employment elasticity? [I.A.S. (Pre) 1993, M.P.P.C.S. (Pre) 1997]

Correct Answer: (d) Mixed Farming
Solution:Employment elasticity is a measure of the percentage change in employment associated with a 1% change in economic growth. The employment elasticity indicates the ability of an economy to generate employment opportunities for its population as percent of its growth (development) process. Employment elasticities of different sectors in India in the question period are given in the following table:
Sr. No.SectorEmployment Elasticity
1Construction1.13
2Finance and Real Estate0.66
3Manufacturing0.09
4Agriculture0.04
5All sectors0.19

Source: 12th Five Year Plan document, Chapter 22.

53. Which one of the following is not responsible for unemployment? [U.P.P.C.S. (Mains) 2014]

Correct Answer: (c) Growth of per capita income
Solution:For the persistent unemployment, growth of per capita income is not responsible, while rapid population growth, lack of skill and lack of manpower planning are responsible causes of unemployment.

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.

Sluggish Economic Growth: The underdeveloped economy fails to generate sufficient jobs to meet the demands of a rapidly growing population, resulting in widespread unemployment.
Overpopulation: Rapid population growth exacerbates job scarcity, with the unemployment rate reaching concerning levels, such as 11.1% during the 10th Five-Year Plan period.
Seasonal Nature of Agriculture: The agriculture sector is largely seasonal and offers only temporary employment, leaving a significant part of the rural population jobless during off-seasons.
Informal Sector Challenges: The majority of the workforce (Gig Workers) operates in unorganised sectors with low wages and poor job security, which makes them perceive their employment as inadequate.
Underperforming Service Sector: Despite contributing significantly to GDP, the service sector in India employs only a small fraction of the workforce compared to developed countries.
Mismatched Education: Education sector in India fail to equip students with industry-relevant skills, rendering a large number of graduates unemployable. For example, 80% of India's 1.5 million engineering graduates lack employable skills..

54. Labour Force Participation Rate is defined as the: [Jharkhand P.C.S. (Pre) 2023]

Correct Answer: (b) ratio of employed and willing to work to working age population
Solution:Labour Force Participation Rate (LFPR) is defined as the percentage of persons in labour force (i.e. working or seeking or available for work) in the working age population. Hence, option (b) is the correct answer.

The objective of PLFS is primarily twofold:

  •  to estimate the key employment and unemployment indicators (viz. Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate) in the short time interval of three months for the urban areas only in the 'Current Weekly Status' (CWS).
  • to estimate employment and unemployment indicators in both 'Usual Status (ps+ss) and CWS in both rural and urban areas annually.

55. Given below are two statements, one is labelled as Assertion (A) and the other as Reason (R). [U.P.PC.S.(Pre) 2019]

Assertion (A): The labour force participation rate falling sharply in the recent years for females in India. Reason (R): The decline in labour force participation rate is due to the improved family income and increase in education.

Codes:

Correct Answer: (a) Both (A) and (R) are true and (R) is the correct explanation of (A)
Solution:The labour force participation rate falling sharply in the recent years on Usual Status for females in India. As per the Annual Employment - Unemployment Surveys of the Labour Bureau, female labour force participation rate (FLFPR) (as per the question period) declined from 31.1% in 2013-2014 to 27.4% in 2015-16 and further to 26.9% in 2016-17.

As per Periodic Labour Force Survey, it was at 23.3% in 2017-18. The decision of and ability for women to participate in the labour force is the outcome of various economic and social factors that interact in a complex fashion at both the house- hold and macro-level.

Based on global evidence, some of the most important drivers include educational attainment, fertility rates and the age of marriage, economic growth/cyclical effects, social norms, and urbanization. In India, main reasons of the falling trends of FLFPR are rising educational enrolment of young women, lack of employment opportunities, effect of rising household income etc.

Hence, as per the question period, both (A) and (R) are true and (R) is the correct explanation of (A). As per the 'Employment Indica- tors in India' Report (Source: Periodic Labour Force Survey Reports) available on the website of Directorate General of Employment (DGE), Ministry of Labour and Employment and PLFS Annual Report (July, 2022-June, 2023), the labour force participation rate for persons of age 15 years and above at Usual Status in India has shown increasing trend for both males and females in recent years:

YearsMale (%)Female (%)Total (%)
2019-2076.830.053.5
2020-2177.032.554.9
2021-2277.232.855.2
2022-2378.537.057.9

56. What was the Current Daily Status (CDS) unemployment rate in India as per National Sample Survey 2011-12? [Chhattisgarh P.C.S. (Pre) 2016]

Correct Answer: (b) 5.6 percent
Solution:As per employment and unemployment survey of 68th round of National Sample Survey (2011-12), the Current Daily Status (CDS) unemployment rate in India was 5.6 percent, while Current Weekly Status (CWS) and Usual Status (US) unemployment rates were 3.7 percent and 2.7 percent, re- spectively.

As per the Periodic Labour Force Survey (PLFS) Annual Report (July, 2022-June, 2023), the CWS and US un- employment rate for persons of age 15 years and above in India in 2022-23 are 5.1 percent and 3.2 percent, respectively.

57. According to NSS 61st round data, unemployment at current daily status in rural as well as urban areas is nearly: [U.P.P.C.S.(Pre) 2013]

Correct Answer: (a) 8%
Solution:As per the 61st round of NSS, on the basis of Current Daily Status (CDS) rural and urban unemployment were 8.3% and 8.2% respectively. Therefore, CDS based unemployment rates in rural as well as urban areas were nearly 8%. In the year 2011-12, as per 68th round of NSS, CDS based unemployment rates in rural and urban areas were 5.9% and 5.5% respectively. In all over India, CDS based unemployment rate was 5.6% in the same period.

According to the Periodic Labour Force Survey (PLFS) Annual Report (July, 2022- June, 2023), the unemployment rate for persons of age 15 years and above in the country on the basis of Usual Status in the year 2022-23 is 3.2 percent (urban-5.4 percent, rural -2.4 percent) while on the basis of Current Weekly Status (CWS) it is at 5.1 percent (urban-7.0 percent, rural - 4.4 percent) in 2022-23.