UPSC Indian Economy – Chapter 6: Employment and Unemployment (23 MCQs)
UPSC Indian Economy – Chapter 6: Employment and Unemployment (23 MCQs) – 23 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.
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In a population of 1,000, 540 persons are employed and 60 are unemployed. The unemployment rate is:
Correct Answer: A [10 per cent]
Explanation:
60 ÷ 600.
In the PLFS, a person's "usual status" is determined with reference to:
Correct Answer: C [the last 365 days]
Explanation:
principal plus subsidiary status over a year.
Unemployment that rises during a recession and falls in a boom is called:
Correct Answer: A [cyclical unemployment]
Explanation:
linked to the business cycle.
The Periodic Labour Force Survey is conducted by:
Correct Answer: B [the National Statistical Office]
Explanation:
under the Ministry of Statistics and Programme Implementation.
According to the PLFS Annual Report 2025, the unemployment rate (usual status, aged 15 and above) was:
Correct Answer: B [3.1 per cent]
Explanation:
The PLFS Annual Report 2025 put usual-status unemployment for persons aged 15 and above at 3.1 per cent.
Consider the following statements about the PLFS:
1. It was launched in April 2017.
2. Monthly estimates on current weekly status began in January 2025.
3. The 2025 estimates are, according to the NSO, strictly comparable with all earlier rounds.
Which of the statements given above are correct?
Correct Answer: C [1 and 2 only]
Explanation:
the NSO cautions that 2025 estimates may not be strictly comparable.
Under the current weekly status, a person is counted as employed if he or she worked during the reference week for at least:
Correct Answer: D [one hour on any day]
Explanation:
On current weekly status a person is employed if he or she worked for at least one hour on any day of the reference week.
The four Labour Codes came into force on:
Correct Answer: A [21 November 2025]
Explanation:
The Centre brought all four Labour Codes into force together on 21 November 2025, replacing 29 central labour laws.
Which Labour Code merges the largest number of earlier laws?
Correct Answer: B [Occupational Safety, Health and Working Conditions Code]
Explanation:
thirteen laws.
Under the Industrial Relations Code, prior government permission for lay-off, retrenchment and closure is required in establishments employing at least:
Correct Answer: D [300 workers]
Explanation:
The Industrial Relations Code raised the prior-permission threshold for lay-off, retrenchment and closure from 100 to 300 workers.
Under the Code on Social Security, fixed-term employees become eligible for gratuity after:
Correct Answer: D [one year]
Explanation:
The Code on Social Security makes fixed-term employees eligible for gratuity after one year of service.
The Pradhan Mantri Viksit Bharat Rozgar Yojana is implemented through:
Correct Answer: A [the Employees' Provident Fund Organisation]
Explanation:
incentives are linked to EPF registration.
In the PLFS 2025, which category had the largest share of workers?
Correct Answer: C [Self-employed]
Explanation:
56.2 per cent.
If many discouraged workers stop seeking work, the unemployment rate will most likely:
Correct Answer: C [fall, even if no new jobs are created]
Explanation:
they leave the labour force.
Assertion (A): The unemployment rate on current weekly status is generally higher than on usual status.
Reason (R): A person who did some work during the year counts as employed on usual status, even if he or she had no work in the reference week.
Correct Answer: A [Both A and R are true, and R is the correct explanation of A]
Explanation:
R explains A.
Consider the following statements about the e-Shram portal:
1. It was launched in August 2021.
2. It is a national database of unorganised workers.
3. Over 31 crore workers had registered on it by July 2026.
Which of the statements given above are correct?
Correct Answer: B [1, 2 and 3]
Explanation:
31.78 crore as on 14 July 2026.
Which group recorded the highest unemployment rate in the PLFS 2025?
Correct Answer: D [Urban youth (15–29)]
Explanation:
13.6 per cent.
Arrange the following in chronological order:
1. Launch of the PLFS
2. Launch of the e-Shram portal
3. Enactment of the Code on Wages
4. Labour Codes brought into force
Correct Answer: D [1-3-2-4]
Explanation:
2017, 2019, 2021, 2025.
In the PLFS 2025, the share of workers in agriculture was about:
Correct Answer: C [43 per cent]
Explanation:
43.0 per cent.
Short spells of unemployment while workers move between jobs are called:
Correct Answer: C [frictional unemployment]
Explanation:
Frictional unemployment is the short, temporary gap while workers change jobs or first enter the labour market.
Disguised unemployment generally means
Correct Answer: C [marginal productivity of labour is zero]
Explanation:
extra workers add nothing to output.
With reference to the Indian Economy after the 1991 economic liberalization, consider the following statements:
1. Worker productivity (rupees per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in the non-farm economy increased.
4. The growth rate in rural employment decreased.
Which of the statements given above is/are correct?
Correct Answer: B [3 and 4 only]
Explanation:
the rural non-farm economy grew, and rural employment growth slowed.
In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers?
Correct Answer: C [Labour Bureau]
Explanation:
the Labour Bureau, Ministry of Labour and Employment.
➤ Full notes, maps, tables, a reason for every option and Mains PYQs – U15 · Indian Economy (UPSC book, ₹249): www.shanmugamiasacademy.in/study-materials/upsc-indian-economy
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