NCERT Class 11 Economics — Chapter 7: Employment: Growth, Informalisation and Other Issues

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The term ‘Jobless Growth’ in the context of the Indian economy refers to:

Official previous-year question

Verified 1 Aug 2026.

Options

AA condition where unemployment rates exceed the GDP growth rate.
BThe growth of the informal sector at the expense of the formal sector.
CA period where the economy produces more goods and services without generating proportionate employment.
DA situation where GDP declines but employment increases.

Did you get this right?

Solution

The correct option is A period where the economy produces more goods and services without generating proportionate employment..

Explanation

Jobless growth is a macroeconomic phenomenon where an economy experiences an increase in its Gross Domestic Product (GDP) while maintaining or decreasing its level of employment. It signifies a disconnect between economic expansion and job creation.

Option Analysis:

A situation where GDP declines but employment increases. is incorrect: A scenario where GDP declines while employment increases implies a significant reduction in labor productivity. This is contrary to the concept of growth.
A period where the economy produces more goods and services without generating proportionate employment. is correct: Jobless growth occurs when the production of goods and services increases without a proportionate rise in employment opportunities. This is typically driven by technological advancements, automation, and a shift towards capital-intensive industries, which enhance productivity without requiring additional labor.
A condition where unemployment rates exceed the GDP growth rate. is incorrect: While high unemployment rates may coexist with GDP growth, the definition of jobless growth focuses on the structural inability of growth to generate jobs, rather than a specific comparison of rates.
The growth of the informal sector at the expense of the formal sector. is incorrect: The expansion of the informal sector at the expense of the formal sector is termed "informalization." While this may be a consequence of jobless growth in the formal sector, it is not the definition of the term itself.

Key Takeaway:

Jobless growth is characterized by low employment elasticity, meaning that economic output expands due to productivity gains (technology/capital) rather than the absorption of the labor force.

Your note

More from Chapter 7: Employment: Growth, Informalisation and Other Issues

With reference to the definition of ‘workers’ in the Indian economy, consider the following statements: 1. Self-employed individuals are considered workers in the Indian economy. 2. A person temporarily abstaining from work due to illness is excluded from the worker category. 3. Those who help main workers in economic activities without receiving direct payment are included in the category of workers. Which of the statements given above is/are correct?

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Consider the following statements regarding the ‘Worker-Population Ratio’ in India: 1. It is defined as the total population divided by the number of workers. 2. The worker-population ratio is generally higher in rural areas compared to urban areas. 3. A higher ratio indicates that a greater proportion of the population is actively contributing to the production of goods and services. Which of the statements given above is/are correct?

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With reference to the concepts of Gross Domestic Product (GDP) and Gross National Product (GNP), consider the following statements: 1. GNP is calculated by deducting the value of exports from the GDP. 2. GDP is the total money value of all final goods and services produced in a country in a year. 3. The net earning from foreign transactions is always positive for a developing country like India. Which of the statements given above is/are correct?

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Consider the following statements regarding the participation of women in the workforce in India: 1. Women constitute the majority of the workforce in rural India. 2. The worker-population ratio for women is significantly higher in urban areas than in rural areas. 3. Many household activities performed by women are not recognised as productive work, leading to an underestimation of women workers. Which of the statements given above is/are correct?

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The term "Squatters" in the context of the informal sector refers to:

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Keep practising Chapter 7: Employment: Growth, Informalisation and Other Issues

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The correct option is A period where the economy produces more goods and services without generating proportionate employment..

Explanation

Option Analysis:

A situation where GDP declines but employment increases. is incorrect: A scenario where GDP declines while employment increases implies a significant reduction in labor productivity. This is contrary to the concept of growth.
A period where the economy produces more goods and services without generating proportionate employment. is correct: Jobless growth occurs when the production of goods and services increases without a proportionate rise in employment opportunities. This is typically driven by technological advancements, automation, and a shift towards capital-intensive industries, which enhance productivity without requiring additional labor.
A condition where unemployment rates exceed the GDP growth rate. is incorrect: While high unemployment rates may coexist with GDP growth, the definition of jobless growth focuses on the structural inability of growth to generate jobs, rather than a specific comparison of rates.
The growth of the informal sector at the expense of the formal sector. is incorrect: The expansion of the informal sector at the expense of the formal sector is termed "informalization." While this may be a consequence of jobless growth in the formal sector, it is not the definition of the term itself.

Key Takeaway:

Jobless growth is characterized by low employment elasticity, meaning that economic output expands due to productivity gains (technology/capital) rather than the absorption of the labor force.