UNEMPLOYMENT — Economics STD 12 Commerce — Question

• The high population growth rate of India has increased the problem of unemployment and made it more serious.
• The fast growing population keeps on supplying labour in the market. These labourers then demand work from the economy.
• On the other hand due to slow economic growth, enough opportunities cannot be raised for the large pool of labourers. This results in rise in unemployment.

Solution:

• Effective steps should be taken to control population growth.
• This will reduce the supply of labour on a long term and hence solve the problem of unemployment.
• Moreover, when population will be less country’s resources will become surplus. This will then lead to increase in capital investment which in turn will increase employment opportunities.
• If population control is done effectively then in long term the productive age- group i.e. people belonging to the age group of 15 to 64 years can be better placed to work.