“The coexistence of declining rural unemployment and increasing urban joblessness reflects dual labour market transitions”. Analyse the structural drivers. Evaluate the risks if this trend continues. Suggest a robust employment strategy to address the issue.
Kartavya Desk Staff
Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Q5. “The coexistence of declining rural unemployment and increasing urban joblessness reflects dual labour market transitions”. Analyse the structural drivers. Evaluate the risks if this trend continues. Suggest a robust employment strategy to address the issue. (15 M)
Difficulty Level: Medium
Reference: TH
Why the question: PLFS 2025 data shows rural unemployment declining while urban unemployment rises, highlighting contrasting labour market trends. Key Demand of the question: Analyse why rural and urban labour markets are behaving differently, evaluate the consequences if this divergence continues, and suggest a comprehensive employment strategy addressing both regions. Structure of the Answer: Introduction: Briefly note recent PLFS trends indicating dual labour market transition. Body: Structural drivers: Explain agricultural absorption in rural areas vs. slowdown and skill mismatch in urban labour markets. Risks: Highlight implications such as disguised unemployment, informalisation, and stalled structural transformation. Employment strategy: Suggest rural non-farm diversification, urban job creation, skills reform, and social security strengthening. Conclusion: Summarize the need for balanced and inclusive employment growth to ensure sustainable structural transformation.
Why the question: PLFS 2025 data shows rural unemployment declining while urban unemployment rises, highlighting contrasting labour market trends.
Key Demand of the question: Analyse why rural and urban labour markets are behaving differently, evaluate the consequences if this divergence continues, and suggest a comprehensive employment strategy addressing both regions.
Structure of the Answer: Introduction: Briefly note recent PLFS trends indicating dual labour market transition.
• Structural drivers: Explain agricultural absorption in rural areas vs. slowdown and skill mismatch in urban labour markets.
• Risks: Highlight implications such as disguised unemployment, informalisation, and stalled structural transformation.
• Employment strategy: Suggest rural non-farm diversification, urban job creation, skills reform, and social security strengthening.
Conclusion: Summarize the need for balanced and inclusive employment growth to ensure sustainable structural transformation.