Consider the following statements : 1. Employment growth in India in

Consider the following statements :

  • 1. Employment growth in India in the second half of the first decade of 21st century was relatively modest.
  • 2. There was lower labour force participation rate across all ages during the period.

Which of the statements given above is/are correct?

1 only
2 only
Both 1 and 2
Neither 1 nor 2
This question was previously asked in
UPSC CAPF – 2013
The correct option is C, as both statements are correct.
– Statement 1 is correct. Economic data from the period 2004-05 to 2009-10 indicated a phenomenon often termed ‘jobless growth’, where GDP grew significantly but employment growth was sluggish and relatively modest compared to the previous periods.
– Statement 2 is also correct. During this period, there was a noticeable decline in the Labour Force Participation Rate (LFPR) across various age groups, including youth and women, particularly in rural areas. This contributed to the modest employment growth despite economic expansion.
The National Sample Survey Office (NSSO) surveys on employment and unemployment provide the basis for these observations. The period 2004-05 to 2009-10 showed a deceleration in employment growth compared to 1999-2000 to 2004-05. The decline in LFPR, especially among rural women, was a significant trend observed during this time.
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