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Difficulty: HardDemographic Trends, Employment Types, and Skill Development Programs

Consider the following statements regarding demographic indicators, types of employment, and national skill development mechanisms in India:

1. The Dependency Ratio measures the working-age population (aged 15–64 years) expressed as a percentage of the total dependent population (aged 0–14 years and 65 years and above).
2. Structural unemployment occurs primarily due to a technological change or shift in economic structure that creates a misalignment between the skills of job seekers and the needs of employers.
3. Under the National Apprenticeship Promotion Scheme (NAPS), financial assistance for stipends is routed directly to apprentices' bank accounts via Direct Benefit Transfer (DBT).

Which of the statements given above are correct?

  1. 2 and 3 onlyAnswer
  2. B
    1 and 2 only
  3. C
    1 and 3 only
  4. D
    1, 2, and 3

Answer

Statements 2 and 3 are correct, while statement 1 is incorrect.
The option selecting statements 2 and 3 is correct. The dependency ratio places the dependent population (aged 0–14 and 65+) in the numerator and the working-age population (aged 15–64) in the denominator, making statement 1 false. Statement 2 is true as structural unemployment stems from structural shifts and skill mismatches in the labor market. Statement 3 is true as NAPS utilizes DBT for direct stipend transfers to apprentices.

Step-by-Step Solution

1
Evaluate Statement 1 regarding the definition of the Dependency Ratio.
Statement 1 is incorrect. The Dependency Ratio is calculated as Population (0–14) + Population (65+)Population (15–64)×100\frac{\text{Population (0–14) + Population (65+)}}{\text{Population (15–64)}} \times 100. Statement 1 inverted the numerator and denominator.
Demographic trends define the dependency ratio as the ratio of dependents to the working-age population.
2
Evaluate Statement 2 regarding Structural Unemployment.
Statement 2 is correct. Structural unemployment is caused by fundamental changes in the economy, such as technological evolution, that create a divergence between available worker skill sets and employer demand.
This matches the standard economic definition of structural employment friction.
3
Evaluate Statement 3 regarding the National Apprenticeship Promotion Scheme (NAPS).
Statement 3 is correct. NAPS provides partial stipend reimbursement directly to apprentices via Direct Benefit Transfer (DBT) to encourage industrial apprenticeship participation.
Skill development reforms under MSDE implemented DBT for stipend payouts to enhance transparency and youth engagement.

Key Concept

Demographic Indicators, Structural Unemployment, and NAPS DBT Mechanism
Estimated Time:1m 50s
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Topics

Demographic Trends, Employment Types, and Skill Development Programs