Question

GDP in india is growing but unemployment stays to be a serious issue. How do you reconcile these facts

Answer 1

Answer:

Unemployment tends to rise quickly, and often remain elevated, during a recession. With the onset of recession as companies face increased costs, stagnant or falling revenue, and increased pressure to service their debts they begin to lay off workers in order to cut costs.

Answer 2

GDP vs UnEmployment:

Explanation:

• Gross Domestic Product, abbreviated as GDP, is that the total value of products and services produced in an exceedingly country. Hence, the GDP rate of growth of India is a necessary indicator of the country's economic development and progress.
• The nominal GDP is estimated at INR 232.15 trillion (US$3.12 trillion) as against the provisional estimate of GDP for the year 2020-21 of INR 197.46 trillion (US$2.65 trillion).
• Okun's law looks at the statistical relationship between a country's unemployment and economic process rates. Okun's law says that a country's gross domestic product (GDP) must grow at a couple of 4% rate for one year to attain a tenth reduction within the rate of unemployment.
• The relationship between Gross Domestic Product (GDP) and unemployment rates will be seen by the appliance of Okun's Law. consistent with the principles established by this law, there's a corresponding two percent increase working for each established simple fraction increase in GDP.