Employment: Growth, Informalisation and Policies for CUET Economics

AnswerB · does an activity that adds to the GDP

1. Anyone engaged in an economic activity that contributes to the GDP is a worker, paid or self-employed.

AnswerD · a worker

1. She adds to the output of a business, so she counts as a worker (an unpaid family worker), even with no wage.

AnswerA · people working and people seeking work

1. Labour force = employed + unemployed (those willing and able to work who are looking for it).

2. The workforce is only those actually working.

AnswerC · A graduate actively looking for a job who has none

1. Unemployed means without work but willing and able to work and seeking it.

2. The retired teacher and the student are not seeking work; the farmer is working.

AnswerC · 400

1. Labour force = working + seeking work = 380 + 20 = 400.

AnswerD · A is false, but R is true.

1. Unpaid household services are left out of GDP, so their providers are not counted as workers on that account. A is false.

2. R is true.

AnswerB · the number of workers ÷ the total population × 100

1. It shows what share of the population is engaged in producing goods and services.

AnswerB · 38%

1. WPR = workers ÷ population × 100 = 380 ÷ 1000 × 100 = 38%.

AnswerB · 5%

1. Unemployment rate = unemployed ÷ labour force × 100 = 20 ÷ 400 × 100 = 5%.

AnswerC · poor rural families need every member to earn

1. Rural incomes are low, so more family members, including women and the young, must work.

2. In towns, more young people are in education and many wait for jobs that match their qualifications.

AnswerA · Only I

1. Men's participation is well above women's: I is true.

2. A high ratio can reflect poverty, as in villages where everyone must work. II is false.

AnswerB · Both A and R are true, but R is not the correct explanation of A.

1. Both statements are true.

2. R notes why some people are outside the labour force, but the reason the rate uses the labour force is that unemployment only means something for people who want work. R is not that explanation.

AnswerC · 40%

1. Labour force = 380 + 20 = 400.

2. Participation rate = 400 ÷ 1000 × 100 = 40%.

AnswerA · Both A and R are true, and R is the correct explanation of A.

1. If such work is not reported as work, the women doing it are not counted as workers.

2. R explains A.

AnswerD · A is false, but R is true.

1. The WPR is workers as a share of the population; the share of the labour force without work is the unemployment rate. A is false.

2. R is true.

AnswerA · A-II, B-IV, C-I, D-III

1. Owning and running an enterprise is self-employment; unpaid family helpers are counted with the self-employed.

2. A regular monthly wage is regular salaried work; hiring by the day is casual work.

AnswerD · is hired by the day with no social security

1. Casual labourers are hired and dismissed as needed, are not paid regularly, and get no social security such as a pension.

AnswerC · self-employed

1. Self-employment is the largest single source of work in India, for both men and women.

AnswerA · urban areas than in rural areas

1. Offices, factories and shops with regular jobs are concentrated in towns; villages have more self-employment and casual work.

AnswerC · 30%

1. Casual share = 114 ÷ 380 × 100 = 30%.

AnswerD · 50%

1. Hired = regular + casual = 76 + 114 = 190.

2. Share = 190 ÷ 380 × 100 = 50%.

AnswerB · Both A and R are true, but R is not the correct explanation of A.

1. Both statements are true.

2. Where salaried jobs are found does not explain why self-employment is the largest category, so R does not explain A.

AnswerA · Only I

1. Casual workers can be dropped at any time and get no social security: I is true.

2. Most self-employed are small farmers, vendors and artisans, so II is false.

AnswerB · A-III, B-I, C-IV, D-II

1. Primary: agriculture and mining; secondary: manufacturing, construction, electricity, gas and water; tertiary: trade, transport and other services.

AnswerD · secondary sector

1. The secondary sector covers manufacturing, construction, and electricity, gas and water supply.

AnswerA · the primary sector

1. Agriculture is still the main source of work in villages; in towns, services employ the most.

AnswerA · Both A and R are true, and R is the correct explanation of A.

1. Output moved to industry and services faster than jobs did, so many workers stayed on farms.

2. R explains A.

AnswerA · Only I

1. Services include trade, transport and storage: I is true.

2. Mining and quarrying are counted in the primary sector, so II is false.

AnswerD · output rises without a matching rise in jobs

1. The economy produces more goods and services without a commensurate increase in employment.

AnswerB · GDP by 80%, employment by 10%

1. GDP: 180 − 100 = 80, so 80%.

2. Employment: 110 − 100 = 10, so 10%.

AnswerC · Jobless growth

1. Output rises steeply while employment barely moves: that is jobless growth.

AnswerC · a growing share of workers are casual wage labourers

1. When the share of casual labour rises relative to self-employment and regular jobs, the workforce is becoming casualised.

AnswerC · 33

1. GDP: 160 − 127 = 33 points.

2. Over the same years, employment rose by 108 − 104 = 4.

AnswerA · Only I

1. Casual workers have no security of work or social security: I is true.

2. Under jobless growth output does grow; jobs do not keep up. II is false.

AnswerD · A is false, but R is true.

1. Employment grew much more slowly than output, so A is false.

2. R is true, and it helps explain why jobs lagged.

AnswerD · A street vendor selling fruit

1. The vendor has no regular income, no protection and no social security: informal work.

AnswerB · public units and private units hiring 10 or more

1. Public sector establishments plus private establishments that hire 10 or more workers make up the formal (organised) sector.

AnswerA · get social security benefits and can form trade unions

1. Formal sector workers earn more, enjoy social security such as pensions and provident fund, and can bargain through unions.

AnswerD · the informal sector

1. Farmers, farm labourers, small enterprises and the self-employed make up most of the workforce, and almost all of them are informal.

AnswerC · a rising share of workers in unprotected informal work

1. Since the 1990s, a larger share of the workforce has ended up in informal work, often without security.

AnswerA · Both A and R are true, and R is the correct explanation of A.

1. No legal protection and no safety net mean a lost job is a lost income.

2. R explains A.

AnswerC · Both I and II

1. Both describe the informal sector and the policy response to it correctly.

AnswerA · the informal sector

1. A private unit is formal only if it hires 10 or more workers; with 8, it is informal.

2. Making garments is manufacturing, which is the secondary sector, not the primary.

AnswerD · A is false, but R is true.

1. Small private firms are informal, so A is false.

2. R is true: it is the definition.

AnswerB · seasonal unemployment

1. Farm work comes in seasons; between them, many are out of work.

AnswerB · disguised unemployment

1. More people appear to be working than the work needs; the marginal product of the extra two is zero.

AnswerA · want work and can work but find none

1. Open unemployment is visible: the person has no job and is looking for one, often in towns.

AnswerD · A-IV, B-III, C-II, D-I

1. Extra hands on a farm are disguised unemployment; idle months are seasonal; a jobless graduate is educated unemployment; a jobless labourer seeking work is open unemployment.

AnswerC · The Monetary Policy Committee

1. The Census, the national surveys (now the Periodic Labour Force Survey) and the registers of employment exchanges all report on work. The MPC sets interest rates.

AnswerA · Only I

1. Farm work rises and falls with the seasons: I is true.

2. Such a person appears to be working, which is why it is called disguised. II is false.

AnswerA · Both A and R are true, and R is the correct explanation of A.

1. Work peaks at sowing and harvest and falls away in between, leaving workers idle for months.

2. R explains A.

AnswerA · Both A and R are true, and R is the correct explanation of A.

1. With few jobs outside farming, more family members stay on the farm than it needs.

2. R explains A.

AnswerA · Only I

1. Graduates seeking jobs that match their degrees are mostly in towns: I is true.

2. Disguised unemployment is hidden: the people appear to be working. II is false.

AnswerD · at least 100 days of wage work in a year

1. Adults in a rural household who volunteer for unskilled manual work are guaranteed at least 100 days of wage employment in a financial year.

AnswerB · directly

1. Hiring in its own departments is direct employment.

2. When public firms raise output, private suppliers and traders hire too: that is indirect employment.

AnswerC · indirect employment created by the government

1. The jobs arise in private firms because of the public plant's extra output: indirect employment.

AnswerC · A is true, but R is false.

1. Guaranteed wage work in lean times supports incomes: A is true.

2. It guarantees at least 100 days of work a year per household, not a permanent job. R is false.

AnswerA · Only I

1. I is true.

2. It is a rural employment guarantee, so II is false.