ROY’S INSTITUTE OF COMPETITIVE EXAMINATION

WBCS (EXE.) ETC. MAIN EXAMINATION

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UNEMPLOYMENT, POVERTY AND WELFARE SCHEMES
UNEMPLOYEMNT :
 Employment Elasticity is a measure of the percentage change in employment associated with a 1 percentage point
change in economic growth. The employment elasticity indicates the ability of an economy to generate employment

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opportunities for its population as per cent of its growth (development) process.
 Jobless growth is a situation when the economy is able to produce more goods and services without a simultaneous
increase in employment opportunities. India went through a phase of jobless growth during the 12th five-year plan

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(2021-2017).
According to National Sample Survey Office (NSSO) data on employment in 2011 showed that between 2004-05 and

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2009-10, only 1 million jobs were added per year; in a period when the economy grew at 8.43% annually.
Reasons for Jobless Growth in India : Import-oriented economy, Stagnation in manufacturing output and employment,
contraction of the labour-intensive segment , automation in service sector etc.
 Vulnerable Employment means, people working informally, without proper job contracts and thus sans any legal
protection. These persons are deemed ‘unemployed’ since records of their work are never maintained.
 Unemployment trap is a situation when unemployment benefits discourage the unemployed to go to work. People
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find the opportunity cost of going to work too high when one can simply enjoy the benefits by doing nothing.
 The National Pension System (NPS) was launched on 1st January, 2004 with objective of providing retirement income
to all the citizens. NPS aims to institutionalize pension reform and to inculcate the habit of savings for retirement
amongst the citizens. Initially, NPS was introduced for the new Government recruits (except armed forces). With
effect from 1st may, 2009, NPS has been provided for all citizens of the country including the unorganized sector
workers on voluntary basis. Pension Fund Regulatory and development Authority (PFRDA) is constituted on 10th
October 2003 to develop and regulate pension sector in the country.
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 Generally advanced countries face cyclical unemployment, developing countries face structural unemployment which
is chronic in nature and all most all the economies face frictional unemployment.
 An unorganised worker is a home-based worker or a self-employed worker or a wage worker in the unorganised sector
and includes a worker in the organised sector who is not covered by any of the Acts pertaining to welfare Schemes
as mentioned in Schedule-II of Unorganised Workers Social Security Act, 2008.
 India’s informal sector engages about 82.6% of its work force.
 Employees State Insurance act 1948, passed with the objective of providing compulsory and contributory health
insurance facility to worker.
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 Bonded Labour Abolition Act was enacted in 1976.

 National Wage Policy made in 2002.
 The largest percentage of bonded labour in India belongs to scheduled tribes
 The Periodic Labour Force Survey (PLFS) of the National Sample Survey Office (NSSO) released the unemployment
rate in the country in FY-18 .
Highest unemployment : Nagaland, Lakshadweep, West Bengal, Goa; Lowest unemployment : Dadra & Nagar
Haveli, Meghalaya, Chhattisgarh, Sikkim. Overall unemployment rate - 6.1%. Rural unemployment-5.3% and urban
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unemployment-7.8% .Male unemployment- 6.2%. Female unemployment- 5.%Urban male unemployment – 7.1%
rural male unemployment- 5.8% .Urban female unemployment- 10.8%. Rural female unemployment- 3.8%.
POVERTY :
 Social Exclusion
It is a process through which individuals or groups are excluded from facilities, benefit and opportunities that others
(their “better”) enjoy. A typical example is the working of the caste system in India in which people belonging to
certain caste are excluded from equal opportunities.
 Vulnerability
Vulnerability to poverty is a measure , which describes the greater probability of certain communities (say, members of
backwards caste), or individuals (such as a widow or a physically handicapped person) of becoming ,or remaining, poor
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in the coming years. In fact, vulnerability describes the greater probability of being more adversely affected than other
people when bad times comes for everybody, whether a flood or an earthquake or simply a fall in the availability of job.
l Poverty gap index:
The poverty gap index is a measure of the intensity of poverty. It is defined as the average poverty gap in the population
as a proportion of the poverty line.
 The poverty gap index is an improvement over the poverty measure head count ratio which simply counts all the
people below a poverty line, in a given population, and considers them equally poor. Poverty gap index estimates the

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depth of poverty by considering how far, on the average, the poor are from that poverty line.
 Poverty gap index provides a clearer perspective on the depth of poverty. It enables poverty comparisons. It also helps
to provide an overall assessment of a region’s progress in poverty reduction and the evaluation of specific public

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policies or private initiatives.
 Poverty gap index ignores the effect of inequality between the poor. It does not capture differences in the severity of
poverty amongst the poor.
 Scholars such as Amartya Sen suggest poverty gap index offers quantitative improvement over simply counting the

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poor below the poverty line, but remains limited at the qualitative level.

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l Multidimensional Poverty Index (MPI) :
 The Multidimensional Poverty Index was launched by the UNDP and the Oxford Poverty & Human Development
Initiative (OPHI) In 2010.
 MPI is based on the idea that poverty is not unidimensional (not just depends on income and one individual may lack
several basic needs like education, health etc.), rather it is multidimensional.
 MPI is significant as it recognizes poverty from different dimensions compared to the conventional methodology that
measures poverty only from the income or monetary terms.
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 MPI uses three dimensions and ten indicators which are:
n Education: Years of schooling and child enrollment (1/6 weightage each, total 2/6);
n Health: Child mortality and nutrition (1/6 weightage each, total 2/6);
n Standard of living: Electricity, flooring, drinking water, sanitation, cooking fuel and assets (1/18 weightage each,
total 2/6)
 Expert group for estimating poverty:
 Dadabhai Naoroji through his book, “Poverty and Unbritish Rule in India” made the earliest estimation of poverty
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line (₹16 to ₹35 per capita per year).

 The poverty line proposed by him was based on the cost of a subsistence or minimum basic diet (rice or flour, dal,
mutton, vegetables, ghee, vegetable oil, and salt).
 VM Dandekar and N Rath (1971), made the first systematic assessment of poverty in India, based on National Sample
Survey (NSS) data. According to him , poverty line must be derived from the expenditure that was adequate to provide
2250 calories per day in both rural and urban areas.
 Expert group constituted by the Planning Commission and, chaired by Suresh Tendulkar,(2009) was constituted to review
methodology for poverty estimation .This committee has moved away from Calorie Consumption based Poverty Estimation
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to a broader definition of poverty that also includes expenditure on health , education clothing in addition to food .
 Government set up the Rangarajan Committee in 2013 to review the Tendulkar Committee methodology for estimating
poverty and clear the ambiguity over the number of poor in the country.
 N.C.Saxena committee (2009) was set up to recommend a suitable methodology for identification of BPL families
in rural areas.
 SR Hashim committee (2010) was constituted to suggest methodology for identifying urban poor.
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 Lakdawala Committee (1993): used clories intake method to identify poor ( 2400 calories as poverty line for rural
and 2100 caories in urban areas)
 Poverty estimation in India is now carried out by NITI Aayog’s task force through the calculation of poverty line based on the
data captured by the National Sample Survey Office under the Ministry of Statistics and Program Implementation (MOSPI).
l The purpose of Community Development Program was: To create scientific outlook among rural people; to solve
the unemployment problem; to cultivate the spirit of self-reliance and initiative among rural people.
l The objective of NREGA 2005- Enhance the livelihood and security of rural people by generating wage employment
through works that develops infrastructure base of that.

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SOCIAL PROTECTION PROGRAMME:
l The Mahatma Gandhi National Rural Employment Guarantee
 The Indian Parliament passed the Mahatma Gandhi National Rural Employment Guarantee Act on 23rd August 2005.
 It came into force on February 2, 2006 in 200 backward districts.
 On 2nd October 2009 an amendment was made in the National Rural Employment Guarantee Act 2005, to change
the nomenclature of the Act from NREGA to MGNREGA.
 MGNREGA is bottom-up, people centred, demand-driven, self-selecting and rights-based programme. It provides a

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legal guarantee for wage employment by providing allowances and compensation both in cases of failure to provide
work on demand and delays in payment of wages for work undertaken.
 Plans and decisions regarding the nature and choice of works to be undertaken, the order in which each worksite

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selection etc., are all to be made in open assemblies of the Gram Sabha (GS)
 Evaluate and monitor the Scheme within the State by State Employment Guarantee Council.
 Central Employment Guarantee Council (CEGC) is Monitoring the implementation of this Act and Preparation of
annual reports to be laid before Parliament by the Central Government on the implementation of this Act.

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 Adult members of a household willing to do unskilled manual work can register themselves to obtain a job card under

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MGNREGA.
 The registration of Job card is valid for five years and may be renewed.
The two types of insurance provided under social security exclusively for MGNREGS workers are: (i) Janashree
Bima Yojana (JBY) and (ii) Rashtriya Swasthya Bima Yojana (RSBY)
 The MGNREGA wage revision is linked to the changes in the Consumer Price Index for Agricultural Workers (CPI-AL).
l The Integrated Rural Development Program
 The Integrated Rural Development Program (IRDP) was launched by the Government of India during 1978 and
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implemented during 1980.
 The basic objective of IRDP is to enable identified rural poor families to augment their incomes and cross the poverty
line through acquisition of credit based productive assets.
 This is a centrally sponsored scheme funded on 50:50 basis by the Centre and the states. It is stipulated that at
 Least 50 per cent of the assisted families should belong to Scheduled Caste and Scheduled Tribe categories. It
 Is also required that at least 40 per cent of those assisted should be women under this program.
 The scheme for Development of Women and Children in Rural Areas (DWCRA) was launched in 1982 as a part of IRDP.
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 In 1999, IRDP was transformed into Swarnajayanti Gram Swarozgar Yojana (SGSY). Self-employment through
organizing poor into Self Help Groups (SHGs) .
l Indira Awaas Yojana
 It was in June, 1985 that Indira Awaas Yojana was launched as a subscheme of RLEGP(the Rural Landless Employment
Guarantee Programme , which was started in 1983,) by earmarking a part of the fund for construction of houses for
SCs/STs and freed bonded labourers.
 Indira Awaas Yojana was made an independent scheme with effect from 1 st January, 1996. It is now a flagship
programme of the Ministry of Rural Development .
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 Indira Awaas Yojana is essentially a public housing scheme for the houseless poor families and those living in dilapidated
and kutcha houses with a component for providing house sites to the landless poor and Below
 Poverty Line (BPL) households identified by the community through Gram Sabhas.
 The cost of the scheme except the component for provision of house sites would be shared between Government of
India and State Governments in the ratio 75:25. In the case of North
 Eastern States the ratio is 90:10. The cost of providing house sites would be shared 50:50 between Government of
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India and State Governments.

 To address these gaps in the rural housing program and in view of Government’s commitment to providing “Housing
for All’’ by the scheme 2022, the of has IAY has been re-structured into Pradhan Mantri Awaas Yojana–Gramin
(PMAY-G) w.e.f. 1st April 2016.
 The unit assistance has been increased from Rs. 70,000 to Rs. 1.20 lakh in plain and from Rs75,000 to Rs 1.30 lakh
in hilly states. The cost of unit assistance is to be shared between Central and State Government in the ratio 60:40 in
plain areas and 90:10 for North Eastern and the Himalayan States.
l The National Social Assistance Program( NSAP):
 The National Social Assistance Programme (NSAP) is a welfare programme being administered by the Ministry of
Rural Development.
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 The Govt. of India launched NSAP as a Centrally Sponsored Scheme w.e.f 15th August 1995.
 Transfer NSAP and Annapurna to the State Plans from the year 2002-03.
 On 1st April, 2000 a new Scheme known as Annapurna Scheme was launched.
 Presently NSAP now comprises of the following five schemes:-
(i) Indira Gandhi National Old Age Pension Scheme (IGNOAPS): Under the scheme, BPL persons aged 60 years
or above are entitled to a monthly pension of Rs. 200/- up to 79 years of age and Rs.500/- thereafter.
 The National Old Age Pension Scheme has been renamed as Indira Gandhi National Old Age Pension Scheme

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(IGNOPS) and formally launched on 19th November, 2007.
(ii) Indira Gandhi National Widow Pension Scheme (IGNWPS): Launched In February 2009 .BPL widows aged
40-59 years are entitled to a monthly pension of Rs. 200/-.
(iii) Indira Gandhi National Disability Pension Scheme (IGNDPS): launched In February 2009. BPL persons aged

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18-59 years with severe and multiple disabilities are entitled to a monthly pension of Rs. 200/-.
(iv) National Family Benefit Scheme (NFBS): Under the scheme a BPL household is entitled to lump sum amount of
money on the death of primary breadwinner aged between 18 and 64 years. The amount of assistance is Rs. 10.000/-.
(v) Annapurna: Under the scheme, 10 kg of food grains per month are provided free of cost to those senior citizens

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who, though eligible, have remained uncovered under NOAPS.

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l Atal Pension Yojana :
 APY was launched on May 9, 2015 under Ministry of Finance. It is aimed at increasing the number of pension schme
beneficiaries across the country.
 The scheme is especially targeted to the private unorganized sector and is open to all Indian citizens between the age
of 18 to 40 years.
 Under the scheme, the beneficiary have to make contribution for at least 20 years before he/she can get pension of
`1000 to `5000 per month after attaining age of 60 years
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l Pradhan Mantri Vaya Vandana Yojana :
 Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a new pension scheme for senior citizens launched on May 4,
2017 by Life Insurance Corporation of India.
 The scheme follows the announcement of launch of pension scheme for senior citizens (Above 60 years of age) under
which they would be provided an interest of over 8% p.a. payable monthly for 10 years.
l Pradhan Mantri Jan Dhan Yojana : PMJDY was launched on August 28, 2014 under the Ministry of Finance. With
the Slogan is ‘Mera Khatha, Bhagya Vidhatha’. It is a national mission to bring comprehensive financial inclusion
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of all the households in the country. Under the PMJDY, and individual age group in the of 10 years to 65 years and
does not have a bank account can open a bank account without depositing any money. The scheme was to ensure the
access to financial services such as banking/savings & deposit Accounts, remittance, credit, debit cards, insurance and
pension in affordable manner. PMJDY also created a Guiness World Record of 11.5 cr account opened in one week.
l Beti Bachao, Beti Padhao :
 The BBBP was launched on January 22, 2015 at Panipat, Haryana as a national initiative jointly run by the Ministry
of Women and Child Development, the Ministry of Health and Family Welfare and the Ministry of Human Resource
Development. It aims to address the issue of the declining child sex ratio (CSR).
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 It is based on three major objectives i.e. prevent gender biased sex selective elimination; ensure survival & protection
of the girl child and ensure education of the girl child.
 On March 8, 2018 the government has announced a Pan India expansion of BBBP covering all 640 districts of the
country.
l Pradhan Mantri Sukanya Samriddhi Yojana :
 PMSSY was launched on January 22, 2015 as a part of Beti Bachao Beti Padhao campaign under Ministry of Women
and Child Development.
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 It aims to secure the future of girl child. It is an ambitious small deposit savings scheme for a girl child.
 Under the scheme, the account can be open anytime between the birth of a girl child and then she attains 10 years
age the parent deposits can be made for 15 years. After the girl reach 18 years of age, she can withdraw 50% of the
amount for marriage or higher study purposes.
l Pradhan Mantri Kaushal Vikas Yojana :
 PMKVY was launched on July 16, 2015 under the Ministry of Skill Development & Entrepreneurship.
 The objective of this Skill Certification Scheme is to enable a large number of Indian youth to take up industry-relevant
skill training that will help them in securing a better livelihood.
 Under the scheme, a monetary reward is also given to trainees of around `8000 per trainee.

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MULTIPLE CHOICE QUESTIONS II. Relative poverty defines poverty in relation to the
economic status of other members of the society.
1. Persons below the poverty line in India are classified Select the correct answer.
as such based on whether—
Codes :
a) they get work for a prescribed minimum number of
days in a year. a) Only I b) Only II
b) they belong to agricultural labourer household and c) Both I and II d) Neither I nor II

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the scheduled caste/tribe social group. 10. Which of the followings is used to measure chronic
c) they are entitled to a minimum prescribed food basket. unemployment?
d) their daily wages fall below the prescribed minimum a) Usual status concept
wages.

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b) Weekly status concept
2. Which of the followings is not considered as a social c) Daily status concept
indicator of poverty? d) None of these
a) Lack of job opportunities. 11. Which one of the following is correct?
b) Lack of access to health care.

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a) In the advanced countries, the unemployment is
c) Illiteracy level temporary or frictional.

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d) None of these b) In the developing countries, the unemployment is chronic.
3. The concept of ‘entitlements’ was introduced by— c) Both (a) & (b)
a) Manmohan Singh b) Amartya Sen d) None of these
c) Jagdish Bhagwati d) Jawaharlal Nehru
12. In India, the nature of unemployment is chronic. It is
4. Which one of the following is not a cause of poverty
largely due to—
in India?
a) slow growth of capital formation as compared with
a) Low level of economic development
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b) Income inequalities increase in labour force.
c) Unequal distribution of land b) slow growth of agriculture
d) Migration of people from rural to urban India c) economic recession
5. Which of the followings is not a valid reason for the d) none of these
poverty alleviation programme in India? 13. In the urban areas, we find—
a) Overlapping of schemes a) educated unemployment
b) Corruption at the highest level b) under-employment
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c) Lack of proper implementation c) open unemployment

d) None of these d) all of these
6. Which of the followings is not a major cause of income 14. The economic phenomenon which signifies persons
inequality in India? who are willing to work at the prevailing wage rate in
a) Increase in population the labour market but fail to be gainfully employed is
known as—
b) Lack of fertile land
a) Open unemployment
c) Unequal distribution of land b) Frictional unemployment
d) Gap between rich & poor
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c) Under-employment
7. Major part of employment in India arise in the field of- d) All of these
a) Organised sector b) Unorganised sector 15. The main lines of activity under Community
Development Programme were—
c) Public sector d) Both (a) and (c) a) Irrigation b) Communications
8. National Rural Employment Guarantee Act provides c) Education d) All of these
employment to— 16. Which of the followings is correct?
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a) Skilled rural worker I. The main aim of IRDP was to raise the levels
b) Semi skilled rural worker of the BPL families in the rural areas above the
poverty line.
c) Unskilled worker II. IRDP provided income generating assets, access
d) Both (a) and (b) to credit and other inputs to BPL families.
9. Which of the followings is correct? III. IRDP was a self-employment scheme.
I. Absolute poverty measures poverty in relation to the Select the correct answer by using codes given below.
amount of money or expenditure necessary to meet Codes :
basic needs. a) Only I & II b) Only I
c) Only I & III d) All I, II & III

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17. DWCRA was launched as a part of— 27. This type of unemployment can occur even in a
a) IRDP b) CDP c) NREP d) TRYSEM situation of full employment—
18. IRDP was restructured as the— a) Structural Unemployment
a) Swarnajayanti Gram Swarozgar Yojana b) Functional unemployment
b) Jawahar Gram Samridhi Yojana c) Cyclical unemployment
c) Sampoorna Gramin Rozgar Yojana d) Disguised unemployment
d) None of these 28. The Sen’s measure of poverty line is said to measure

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19. Post economic reform witnessed- the distribution of welfare rather than merely the
distribution of wealth in a society because—
a) Very growth rate of employment in organized sector
a) It measures the energy requirement of a household.
b) Very low growth in same sector
b) It defines poverty in terms of minimum level of living.

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c) Moderate growth c) It seeks to measure the income shortfall of each
d) Jobless growth in organized secto persons in the poverty line.
20. TRYSEM was aimed at providing basic technical and d) It prescribes a universal standard of well being
entrepreneurial skills to the rural poor in the age group applicable the world over.

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of— 29. How does the National Rural Livelihood Mission seek

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a) 16-30 years b) 18-35 years to improve livelihood options of rural poor?
c) 20-35 years d) 20-40 years a) By setting up a large number of manufacturing
21. CAPART operates as an autonomous body under the industries and agri-business centers in rural areas.
aegis of the— b) By strengthening self-help group and providing
a) Ministry of Rural Development skill development.
b) Ministry of Urban Development c) By supplying seeds, fertilizer, diesel pump-assets and
micro-irrigation equipments free of costs to farmers.
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c) Ministry of Human Resource
d) Ministry of Science & Technology d) All of these
22. In 1985, Indira Awas Yojana was launched as a sub- 30. Among the following who are eligible benefits from
scheme of— MGNREGA?
a) RLEGP b) NREP a) Adult members of only SC and ST households.
b) Adult members of BPL households.
c) IRDP d) None of these
c) Adult members of household of backward
23. Activities under MGNREGA includes—
communities.
a) Rural connectivity to provide all weather access.
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d) Adult members of any household.

b) Irrigation canals including micro & minor irrigation 31. Consider the following statement about Sarva Shiksha
works. Yojana:
c) Water conservation & water harvesting. 1. To achieve the universalization of education in time
d) All of these bound manner.
24. Deen Dayal Antyodaya Yojana (DAY) focuses on— 2. to make free and compulsory education for children
a) upliftment of urban & rural poor through within 6-16.
enhancement of livelihood opportunities through skill Which of the above statement/s is/are correct?
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development and other means Codes :

b) promotion of self-employment a) only 1 b) only 2
c) construction of permanent shelters for urban homeless c) both 1 and 2 d) neither 1 nor 2
d) all of these 32. Sukanya Samriddhi Yojana was announced for—
25. Focus of Atal Pension Yojana (APY) is— a) Encourage savings among parents of girls children.
a) organised sector workers b) Promotion of women empowerment.
b) unorganised sector workers c) Promotion of financial inclusion.
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c) landless workers d) All of these

33. RLEGP was an extension of—
d) senior citizens
a) IRDP b) TRYSEM c) JRY d) NREP
26. DeenDayalAntyodayaYojana(DAY) focuseson—
34. Which of the following term denotes the gradual
a) Upliftment of urban &rural poor through change in the manner of population growth occurring
enhancement of livelihood opportunities through skill over a long period of time?
development and other means a) Demographic transformation
b) promotion of self-employment b) Demographic transition
c) construction of permanent shelters for urban c) Population explosion
homeless d) Demographic dynamism
d) all of these ————
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