Directions: Read the passage and answer the questions that follow:
Paragraph 1
Between September 2017 and April 2018, as per a CSO report, the economy added 4.1 million new jobs in the formal sector. The CSO release defines jobs as ones that provide at least one government financed (or mandated) social security benefit such as Employees’ Provident Fund (EPF), National Pension Scheme, or Employees’ State Insurance Scheme. NITI Aayog and official economists have also put out similar estimates since early this year, inviting widespread skepticism among knowledgeable people.
Question for Sample Reading Comprehension - 2
Try yourself:How many new jobs were added in the formal sector between September 2017 and April 2018?
Explanation
- The passage states that between September 2017 and April 2018, the economy added 4.1 million new jobs.
- This figure is specified by a CSO report, which highlights the number of jobs that provide certain government-financed benefits.
- Therefore, the correct answer is 4.1 million, which corresponds to Option C.
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Paragraph 2
How reliable or credible are the official estimates? Very little and for two reasons: the estimates are based on administrative records of implementing the social security schemes, whose completeness, consistency and accuracy are unknown; and since a formal sector worker, in principle, can legitimately access more than one social security scheme, double counting is a distinct possibility. The release does not explain how the problem is addressed in the database. Therefore, rightly, experts have demanded the release of the administrative data for independent verification.
Question for Sample Reading Comprehension - 2
Try yourself:
How reliable are the official estimates mentioned in the text?Explanation
- The text states that official estimates are not very reliable.
- This is due to two main reasons:
- The estimates are based on administrative records, which may not be complete or accurate.
- There is a risk of double counting workers who can access multiple social security schemes.
- Experts have called for the release of administrative data to verify these estimates independently.
- These points highlight the concerns regarding the credibility of the estimates.
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Paragraph 3
Moreover, the official data suffer from a conceptual problem. The social schemes mentioned above are applicable to establishments above a certain size (of employment), and to certain kinds of enterprises. For instance, in the factory sector, those employing 20 or more workers are mandated to provide EPF to all the workers. So, if in a factory, employment goes up from 19 to 20 workers, it comes under the purview of the EPF, to be provided to all the 20 workers. Thus, the EPF enrolment increases by 20 workers, but the additional job created is just for one worker. Herein lies the fault.
Question for Sample Reading Comprehension - 2
Try yourself:What is the minimum number of workers a factory must employ to be required to provide EPF to its workers?
Explanation
- The text states that in the factory sector, establishments employing 20 or more workers are required to provide EPF.
- This means that once a factory reaches 20 workers, it must enroll all of them in the EPF scheme.
- Therefore, the correct answer is 20 workers, as this is the minimum number needed to trigger the requirement for EPF enrollment.
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Sample Reading Comprehension - 2
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Paragraph 4
The formal sector stands at the apex of India’s labour market pyramid, agriculture being at the bottom, employing 50% of the workforce. The remaining workers are in the non-farm informal sector, spread across rural and urban areas. In fact, it is this sector that has grown in recent decades at the expense of the other two sectors mentioned above. Moreover, nearly half of the informal labour workers are self-employed in household (or own account) enterprises, often engaging unpaid family labour. Varying degrees of under-employment or disguised unemployment are the defining feature of informal labour markets.
Question for Sample Reading Comprehension - 2
Try yourself:
What percentage of India's workforce is employed in agriculture?Explanation
- The text states that agriculture employs 50% of the workforce in India.
- This means half of all workers in the country are involved in agricultural jobs.
- Understanding this helps us see the importance of agriculture in India's economy and job market.
- The other sectors mentioned, like the non-farm informal sector, employ the remaining workers.
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Paragraph 5
Since 1972-73, the five-yearly Employment-Unemployment Surveys (EUS) conducted by the National Sample Survey (NSS) have been the mainstay for analysing labour market trends. Though infrequent, the database has served a valuable purpose of capturing the complexities of the labour market; access to household-level data lately has spawned rich and granular analyses of the informal economy. As the last round of the EUS was in held in 2011-12, there is no reliable way of updating employment trends. The EUS has been replaced with an annual Period Labour Force Survey, and a time use survey. However, it will be a while before these data series come up with stable and credible estimates. The Labour Bureau under the Ministry of Labour and Employment has been carrying out household surveys somewhat similar to the EUS since 2010-11. They show a decline in workerpopulation ratio between 2013-14 and 2015-16, suggesting a deteriorating employment situation recently.
Question for Sample Reading Comprehension - 2
Try yourself:Which of the following is/are synonyms of skepticism?
I. Cynicism
II. Belief
III. Distrust
IV. Conviction
Explanation
Skepticism means a skeptical attitude; doubt as to the truth of something.
I and III are synonyms while II and IV are antonyms.
Hence, option C is correct.
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Question for Sample Reading Comprehension - 2
Try yourself:As per paragraph 1, which of the following could weaken the importance of having added 4.1 million jobs in the economy as per the CSO report?
I. The report is silent about the majority of the workforce engaged in the informal sector.
II. The formal sector accounts for just about 12-15% of India’s workforce.
III. The estimates supplement the data on organised sector employment reported regularly by the Ministry of Labour and Employment.
Explanation
Statements I and II are correct and weaken the impact of the report. Both state that the informal employment stats have not been provided and that this area forms the majority of the employment in India.
Statement III is incorrect. It reinforces the importance of the report by stating it strengthens other similar data.
Only I and II are correct.
Hence, option C is correct.
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Question for Sample Reading Comprehension - 2
Try yourself:Which of the following is a suitable gist of paragraph 3?
Explanation
Paragraph 3 talks about how the social schemes are applicable to a firm only once it reaches a certain threshold and how this shows that the people under a particular scheme may have increase by a huge amount but that does not correspond with an increase in actual employment. Basically, social security database is not a good source to understand about employment data.
This eliminates option B.
Option C is also incorrect as the paragraph does not state that enrolling is voluntary. Option D is incorrect as there is no matching of numbers as stated in the paragraph.
Only option A gives the best gist and states that the databases simply have the list of workers under the scheme but do not depict correct employment figures.
Hence, option A is correct.
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Question for Sample Reading Comprehension - 2
Try yourself:What could be a/some possible reason/s for so few jobs to be created, given that the growth rate is more than 7%?
I. There is no proper record of job creation in the informal economy, which forms the bulk of employment, and hence no way of accurately knowing how many jobs have been created.
II. The growth has mostly been in areas which are capital intensive and not labour intensive.
III. There is a possibility that the GDP figures are overestimated on account of some changes in the new National Accounts Statistics (NAS) series and the economic growth is overstated.
Explanation
All of the statements above are valid/plausible reasons for the job growth to be less than the growth in economy.
Hence, option E is correct.
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Question for Sample Reading Comprehension - 2
Try yourself:Which of the following is/are antonyms of spawned?
I. Destroyed
II. Engender
III. Procreated
IV. Sired
Explanation
Spawned means to produce or generate a large number of.
II, III and IV are all synonyms and hence incorrect. Only destroyed is the opposite of spawned.
Hence, option A is correct.
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Question for Sample Reading Comprehension - 2
Try yourself:As per paragraph 1, which of the following could weaken the importance of having added 4.1 million jobs in the economy as per the CSO report?
I. The report is silent about the majority of the workforce engaged in the informal sector.
II. The formal sector accounts for just about 12-15% of India’s workforce.
III. The estimates supplement the data on organised sector employment reported regularly by the Ministry of Labour and Employment.
Explanation
Refer to:
‘..the estimates are based on administrative records of implementing the social security schemes, whose completeness, consistency and accuracy are unknown; and since a formal sector worker, in principle, can legitimately access more than one social security scheme, double counting is a distinct possibility. The release does not explain how the problem is addressed in the database. Therefore, rightly, experts have demanded the release of the administrative data for independent verification.’
As per the highlighted fragments, I and II are correct while III is not. Hence, option B is correct.
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Question for Sample Reading Comprehension - 2
Try yourself:As per paragraph 4, which of the following is/are some features of the non-farm informal labour markets?
I. It has grown the most in recent decades.
II. Almost all of the workers are self employed or engaged in unpaid labour.
III. This segment suffers from disguised employment.
Explanation
Refer to:
‘The remaining workers are in the non-farm informal sector, spread across rural and urban areas. In fact, it is this sector that has grown in recent decades at the expense of the other two sectors mentioned above. Moreover, nearly half of the informal labour workers are selfemployed in household (or own account) enterprises, often engaging unpaid family labour. Varying degrees of under-employment or disguised unemployment are the defining feature of informal labour markets.’
Only I and III are correct. II is incorrect as the paragraph states only about half of the workers are self employed or engaged in unpaid labour and not ‘almost all’.
Hence, option D is correct.
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Question for Sample Reading Comprehension - 2
Try yourself:Which of the following is/are true as per paragraph 5?
I. The Labour Bureau under the Ministry of Labour and Employment carryies out household surveys similar to the annual Period Labour Force Survey.
II. The results of the Household Surveys point to a worsening employment situation.
III. The Unemployment Surveys (EUS) conducted by the National Sample Survey (NSS) were biennial in nature.
Explanation
Refer to:
‘. The Labour Bureau under the Ministry of Labour and Employment has been carrying out household surveys somewhat similar to the EUS since 2010-11.’
Hence, I is incorrect.
‘The household surveys somewhat similar to the EUS since 2010-11. They show a decline in worker-population ratio between 2013-14 and 2015-16, suggesting a deteriorating employment situation’.
II is correct.
‘Since 1972-73, the five-yearly Employment-Unemployment Surveys (EUS) conducted by the National Sample Survey (NSS) have been the mainstay for analysing labour market trends.’
Biennial refers to an event that takes place every other year while this used to occur every five years. III is incorrect.
Only II is correct.
Hence, option B is correct.
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