Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
4. What is disguised unemployment? How does it impact the economy? Suggest steps to overcome it. (250 words)
Difficulty level: Moderate
Reference: Live Mint
Why the question:
Last month witnessed protests in several parts of north India by students who had appeared for the Non-Technical Popular Categories exam conducted by the Railway Recruitment Board. This was to fill up 35,000 posts for which 12.5 million candidates had applied. While the RRB’s decision to set up a committee to examine the issue may have pacified students for the time being, it is unlikely to offer any solution for the bigger problem of employment and earnings in the Indian economy.
Key Demand of the question:
To write about disguised unemployment and steps needed to overcome it.
Structure of the answer:
Introduction:
Begin by defining disguised unemployment. Give an example to substantiate.
Body:
First, mention the impact of disguised unemployment on the Indian economy –does not affect aggregate economic output, productivity is low and too many workers are filling too few jobs etc.
Next, suggest measures to overcome disguised unemployment – creating additional employment with proper wages, security of tenure and social protection, upskilling and reskilling of labor force etc.
Conclusion:
Conclude by writing a way forward.
