Relevance: GS III (Indian Economy & Employment) | Source: The Indian Express

1. The Growth vs. Jobs Paradox

  • The Main Issue: While India’s GDP (total economic value) is growing fast, it is not creating enough new jobs. This is called Jobless Growth.
  • The Data Gap: We have very fast and regular data for GDP, but we don’t have high-quality, real-time data for jobs. This means the government is often “flying blind” when it comes to fixing unemployment.

2. What the Current Data Shows?

  • General Unemployment: Since 2016, the average unemployment rate has been around 5.2%. This is higher than the 3.7% we saw in 2011-12.
  • Youth Crisis: The biggest worry is for young people (ages 15-29). Their unemployment rate jumped to 10.2% in 2023-24.
  • The COVID Puzzle: During the pandemic year (2020-21), the economy shrank by 7%, but official data showed unemployment actually fell.
    • The Reality: This likely happened because people lost good jobs and were forced to do low-paid farm work or small street selling just to survive. The data counted this as “employment,” hiding the real distress.

3. Why This Matters for India?

  • Demographic Dividend: India has a massive young population (15–59 years). If they don’t get quality jobs, this “dividend” could turn into a “disaster” of poverty and frustration.
  • Lack of Real-time Info: Without frequent job surveys, the government cannot make quick policy changes when an industry starts losing workers.

UPSC Value Box

Key Term / Body Simple Meaning for Exam
NSO (National Statistical Office) The main wing of the Ministry of Statistics (MoSPI). It was formed by merging the NSSO and CSO to provide a single, reliable source for all national data like GDP and PLFS.
Working Age Population People between 15 and 59 years. Currently, this group makes up roughly 64% to 65% of India’s total population, forming the core of our “Demographic Dividend.”
PLFS Periodic Labour Force Survey. The official survey conducted by the NSO to track how many people are working, unemployed, or have left the labor force entirely.

With reference to the Indian economy and employment, consider the following statements:

  1. ‘Jobless Growth’ refers to an economic situation where GDP grows but fails to generate a proportionate increase in employment.
  2. The Periodic Labour Force Survey (PLFS) is conducted by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation.
  3. In India, the ‘Demographic Dividend’ refers to the rising proportion of people in the age group of 60 years and above.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

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