Unemployment refers to persons in the age group of:

15-59. Able and willing persons aged 15 to 59.

As per NSSO, a person working less than ___ hours a week is unemployed:

14. Less than 14 hours a week counts as unemployed.

A person who is fit to work but not willing to work is in:

Voluntary unemployment. This is voluntary (self) unemployment.

Underemployment means:

Capacity to work is underutilised. The person works but below capacity.

Involuntary unemployment arises because:

Labour supply exceeds labour demand. There are more workers than jobs available.

Maharashtra State Board · HSC Commerce · Class 11 (Std XI)

Class 11 Economics Chapter 7: Unemployment in India

Short notes, key concepts, quick revision and practice MCQs with answers

Unemployment, the state of being able and willing to work at the prevailing wage but unable to find a job, is a major challenge for India, especially among the youth.

Key concepts: Unemployment in India

Meaning: Persons aged 15 to 59 who are able and willing to work at the prevailing wage but cannot get a job.
NSSO norms: Working less than 14 hours a week = unemployed; 15 to 28 hours = underemployed; 8 hours a day for 273 days a year = employed.
Involuntary unemployment: People willing to work find no work because labour supply exceeds demand.
Voluntary unemployment: A person fit to work chooses not to work.
Underemployment: A person's capacity to work is underutilised.
Full employment: A situation in which all available resources are used efficiently.

Quick revision: important points

Long-term unemployment leads to poverty and slow economic development.
Youth unemployment is a critical challenge because young people drive innovation.
Growth is not fast enough to absorb the expanding labour force.

Practice MCQs with answers

Unemployment refers to persons in the age group of:
1. 5-14
2. 15-59
3. 60-75
4. 0-100
Show answer
Answer: B. 15-59
Able and willing persons aged 15 to 59.
As per NSSO, a person working less than ___ hours a week is unemployed:
1. 8
2. 14
3. 28
4. 40
Show answer
Answer: B. 14
Less than 14 hours a week counts as unemployed.
A person who is fit to work but not willing to work is in:
1. Involuntary unemployment
2. Voluntary unemployment
3. Full employment
4. Underemployment
Show answer
Answer: B. Voluntary unemployment
This is voluntary (self) unemployment.
Underemployment means:
1. No work at all
2. Capacity to work is underutilised
3. Working only in cities
4. Retirement
Show answer
Answer: B. Capacity to work is underutilised
The person works but below capacity.
Involuntary unemployment arises because:
1. People refuse work
2. Labour supply exceeds labour demand
3. Wages are too high always
4. Jobs are unlimited
Show answer
Answer: B. Labour supply exceeds labour demand
There are more workers than jobs available.

All Class 11 Economics chapters

Class 11 Economics notes: all chapters