Question

“Assuming in a hypothetical economy, Real Gross Domestic Product recorded a growth rate of 9% during a fiscal year. However, the economy faced a significant challenge in terms of creating an adequate number of employment opportunities.”

Identify the situation indicated in the given statement and choose the correct option.

Options

• Casualisation of workforce

• Informalisation of workforce

• Formalisation of workforce

• Jobless growth

Answer 1

Jobless growth

1. Explanation:

• The situation described reflects jobless growth, where an economy experiences a high growth rate in real GDP but fails to generate sufficient employment opportunities.
• This suggests that despite overall economic progress, sectors with low labour intensity, such as automation or capital-intensive industries, drive economic expansion, leaving many people without jobs.