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Question

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

Consider the following statements regarding types of unemployment and skill development initiatives in India:

1. Frictional unemployment occurs when individuals are temporarily unemployed while actively transitioning from one job to another or searching for better opportunities.
2. Under the National Apprenticeship Promotion Scheme (NAPS), the Government of India provides financial support by sharing stipend costs directly transferred to apprentices.
3. Seasonal unemployment primarily affects workers in the formal urban manufacturing sector due to rapid technological automation.

Which of the statements given above is/are correct?

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

Answer

1 and 2 only are correct statements.
Statement 1 correctly defines frictional unemployment as a temporary search period between job transitions. Statement 2 accurately describes NAPS, under which government stipend support is directly disbursed via Direct Benefit Transfer (DBT) to apprentices. Statement 3 is incorrect because seasonal unemployment is linked to seasonal industries like agriculture, sugar mills, and tourism, whereas unemployment arising from technological advancement in manufacturing is termed structural unemployment.

Step-by-Step Solution

1
Analyze Statement 1
Statement 1 is correct.
Frictional unemployment refers to the short-term period when workers are between jobs or searching for new positions matching their skill sets.
2
Analyze Statement 2
Statement 2 is correct.
The National Apprenticeship Promotion Scheme (NAPS) includes Direct Benefit Transfer (DBT) component where the central government directly reimburses part of the prescribed stipend to apprentices' bank accounts.
3
Analyze Statement 3
Statement 3 is incorrect.
Seasonal unemployment occurs during specific times of the year when demand for labor decreases, predominantly observed in agriculture and agro-based industries, not in formal urban manufacturing due to technological automation (which is structural unemployment).

Key Concept

Classification of Unemployment Types and Implementation of National Skill Initiatives
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Topics

Demographic Trends, Employment Types, and Skill Development Programs