Topic: Inflationary Gap and Inflationary process
Q5. Discuss the various causes of unemployment in India. Assess their linkages with structural transformation failures. Recommend pathways for employment-intensive growth. (15 M)
Difficulty Level: Medium
Reference: InsightsIAS
Why the question
Unemployment persists despite growth, and India’s structural transformation is incomplete, making it important to analyse causes, linkages and policy pathways for job-rich growth.Key Demand of the question
Explain the major causes of unemployment and show how they stem from or reinforce failures of structural transformation, then suggest strategies for generating employment-intensive growth.Structure of the Answer:
Introduction
Briefly refer to India’s unemployment paradox where economic growth has not translated into adequate job creation, indicating deeper structural issues.Body
- Causes of unemployment in India – give broad structural and institutional reasons.
- Linkages with failures of structural transformation – explain how stalled farm-to-non-farm shifts and incomplete industrialisation worsen unemployment.
- Pathways for employment-intensive growth – suggest practical, sector-linked and systemic approaches.
Conclusion
Provide a forward-looking line on aligning growth strategy with labour absorption to harness the demographic dividend.
