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Economics · 2025 · 6 marks

CBSE 2025 · Region 5 · Set 1 · Q34

Read the following text carefully :
The Labour Force Participation Rate (LFPR) measures the percentage of the population either employed or actively seeking employment in a nation. In India, the labour force grew by $\displaystyle 99$·$\displaystyle 2$ million persons between $\displaystyle 2000$ – 2019. The labour force grew from $\displaystyle 396$·$\displaystyle 3$ million to $\displaystyle 495$·$\displaystyle 5$ million.
During $\displaystyle 2012$ – $\displaystyle 2019$, the labour force grew without a matching increase in employment, leading to higher unemployment.
The gender disparity in India’s labour market is notable with women’s LFPR at $\displaystyle 32$·$\displaystyle 8$% in $\displaystyle 2022$, significantly lower than men’s LFPR at $\displaystyle 77$·$\displaystyle 2$%. This is a major reason for India’s overall low LFPR, which is lower than the global average of $\displaystyle 47$·$\displaystyle 3$%.
During $\displaystyle 2000$ – $\displaystyle 2019$, rural LFPR declined by $\displaystyle 14$·$\displaystyle 1$%, compared to a $\displaystyle 3$·$\displaystyle 5$% decline in urban areas. This trend reversed between $\displaystyle 2019$ – $\displaystyle 2022$, with rural LFPR increasing by $\displaystyle 6$% (especially among rural women) and urban LFPR by $\displaystyle 2$·$\displaystyle 1$%. These shifts suggest that fluctuations occur in women’s labour market participation, particularly in rural areas.
This significantly affected the overall LFPR. Women join the workforce during economic hardships and move out when conditions improve.
On the basis of the given text and common understanding, answer the following questions :
(a)
Define unemployment.
(b)
Write the meaning of Labour Force Participation Rate (LFPR).
(c)
Comment upon the gender disparities in rural and urban Labour Force Participation Rate (LFPR) during $\displaystyle 2000$ – 2019.

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