Employment - GS questions based on daily current affairs

1)   Involuntary unemployment is

a. Person is willing to work at the current wage yet is unemployed
b. Person not willing to work at the current wage as it is less than their reservation wage
c. Person doing work inferior to one’s capacity and qualification
d. There is no such term as Involuntary unemployment
Answer  Explanation 

ANSWER: Person is willing to work at the current wage yet is unemployed

Explanation:

  • Involuntary unemployment occurs when a person is willing to work at the prevailing wage yet is unemployed
  • Involuntary unemployment is distinguished from voluntary unemployment, where workers choose not to work because their reservation wage is higher than the prevailing wage.
  • In an economy with involuntary unemployment there is a surplus of labor at the current real wage.
2)   What is Under-employment?

a. Too many people for a job
b. Doing work inferior to one’s capacity and qualification
c. Employing less people for a job thus overloading the workers
d. Paying less for a job worth more
Answer  Explanation 

ANSWER: Doing work inferior to one’s capacity and qualification

Explanation:

  • Underemployment refers to a job that is insufficient in some important way for a worker, relative to a standard, which results in the under-utilization of the worker.
  • Examples include holding a part-time job despite desiring full-time work, and over qualification, where the employee has education, experience, or skills beyond the requirements of the job.
  • It means under-utilization of labour which is missed by most official (governmental agency) definitions and measurements of unemployment.
  • This is an important factor to consider since there is skill development drive going on in India. There must be enough jobs to cater to skilled workforce.

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