Employment and Unemployment ( PYQs)
Q. The unemployment that occurs due to changes in the technology or in the demand for particular products is called: (CDS-I 2023)
A. Frictional unemployment
B. Structural unemployment
C. Cyclical unemployment
D. Disguised unemployment
Answer: (b) Structural unemployment
Explanation:
- Structural Unemployment: Correct
- Happens when there is a mismatch between the skills of workers and the requirements of new jobs in the economy.
- Caused by technological changes, shifts in demand patterns, or long-term decline of industries.
- Example: Workers in a coal-mining town losing jobs as demand shifts to renewable energy.
- Frictional Unemployment: Incorrect
- Short-term unemployment when workers are between jobs or searching for new ones.
- Example: A software engineer leaving one firm and taking time to join another.
- Cyclical Unemployment: Incorrect
- Caused by economic downturns or recessions when demand falls across the economy.
- Example: Layoffs in 2008 global financial crisis.
- Disguised Unemployment: Incorrect
- Common in agriculture, where more workers are employed than required, leading to hidden underemployment.
- Example: Five family members working on a farm where only three are actually needed.
Q. Which one among the following statements is not correct? (CAPF 2021)
A. When the economy grows slowly than its potential, the unemployment rate rises.
B. Structural employment occurs when jobs are eliminated by changes in demand for particular goods or due to automation.
C. Recession in the economy leads to cyclical unemployment.
D. At full employment, the measured unemployment rate is negative.
Answer: (d) At full employment, the measured unemployment rate is negative
Explanation:
(a) Correct – If the economy grows below potential output, labour demand falls, leading to higher unemployment.
(b) Correct – Structural unemployment happens when workers’ skills do not match jobs due to automation, demand shifts, or technology change.
(c) Correct – Cyclical unemployment is linked to recessions; when demand falls, jobs are lost.
(d) Incorrect – At full employment, unemployment is not negative. It still includes a natural rate of unemployment (frictional + structural). Negative unemployment is impossible.
Q. Consider the following statements: According to the Second Annual Employment–Unemployment Survey Report, 2011–2012 conducted by the Labour Bureau, Government of India. (CAPF 2012)
Unemployment rate in the country during the period has come down significantly over the previous year.
Gujarat tops the list of least unemployed among all Indian States during the period.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: (c) Both 1 and 2
Explanation:
The Labour Bureau’s 2nd Annual Survey (2011–12) highlighted that unemployment had declined compared to 2010–11.
Gujarat was reported to have the lowest unemployment rate, owing to its strong industrial and MSME base.
Hence, both statements are correct.
Q. Disguised unemployment generally means: (UPSC 2013)
A. Large number of people remain unemployed
B. Alternative employment is not available
C. Marginal productivity of labour is zero
D. Productivity of workers is low
Answer: (c) Marginal productivity of labour is zero
Explanation:
Disguised Unemployment
A situation where more people are employed than actually required, leading to zero or negligible contribution by some workers.
In such cases, if extra workers are withdrawn, total output remains unchanged.
Hence, their marginal productivity of labour = 0.
Commonly seen in agriculture in India → e.g., 6 family members working on a farm where only 3 are needed.
Q. Indian Human Development Report does not give for each sample village: (UPSC 2000)
A, Infrastructure and Amenities Index
B. Education Related Index
C. Health Related Index
D. Unemployment Related Index
Answer: (d) Unemployment Related Index
Explanation:
The Indian Human Development Report (IHDR) provides indicators on education, health, infrastructure, and amenities at disaggregated levels.
However, Unemployment-related index is not provided for each sample village.
