Question

Unemployment rate is very low in India. Give reason.

Answer 1

In case of India, the statistical unemployment rate is low but there is a high degree of underemployment.

For example,

1. A poor person accepts any kind of job for subsistence. It may be low productivity and low paid job.Such jobs does not improve the living standard of the workers but somehow feed him. He is recorded as employed but in reality it is close to unemployment.

2. Again, it is seen that a major part of our labour force is engaged in agriculture. They may be recorded as employed but most of the agricultural labourers are disguisedly employed.