NCERT Economics Class 9 Chapter 2 | Unemployment Notes & PDF

Topics Covered

Topic covered: Unemployment and MCQs Questions: People as Resource (All single detail notes are exam-oriented).

We have discussed in-depth and exam-oriented pointers that can be asked in the board exam of class 9th about the “Unemployment“ from the NCERT Economics notes for class 9th chapter 2 People as Resource.

Download the NCERT Economics for Class 9th Chapter 2 People as Resource Notes PDF

Chapter 2: People as Resource in Class 9 Economics shifts focus from material wealth to human beings as an asset. It shows how education, health, and skills turn a population into productive power. Many students struggle to connect terms like “human capital” with real-life examples, so these notes explain them in a simple, relatable way. You’ll find clear points on economic activities, the role of men and women, and why investment in people matters as much as investment in machines. Download the NCERT Economics for Class 9th Chapter 2 People as Resource Notes PDF to make your revision faster and easier.

Unemployment

1. Definition and Basic Concept:

Unemployment exists when people willing to work at prevailing wages cannot find jobs.
Workforce population = 15–59 years age group.
Sheela (household work, not willing for paid work), Jeetu and Seetu (children), and grandparents (old) cannot be considered unemployed.

2. Types of Unemployment in India:

I. Rural Areas:

Seasonal Unemployment:
a. Common in agriculture.
b. Work available only during busy seasons (sowing, weeding, harvesting, threshing).
c. During lean months, people remain jobless.
Disguised Unemployment:
a. More people engaged than required.
b. Example: A field needs 5 workers but employs 8. The extra 3 workers do not increase output.

II. Urban Areas:

Educated Unemployment:
a. Youth with matriculation, graduation, post-graduation often jobless.
b. Unemployment among graduates/post-graduates is rising faster than among matriculates.
c. Paradox: Surplus of manpower in some categories coexists with shortage in others.
d. Technical manpower imbalance: Some highly qualified remain unemployed, while shortage of skilled workers continues.

3. Impact of Unemployment:

Leads to wastage of manpower resource.
Creates hopelessness and despair among youth.
Educated unemployment = great social waste.
Economic overload: unemployed depend on working members.
Decline in quality of life, poor health, and school dropouts.
Indicator of a depressed economy.
Turns potential assets into liabilities.

4. Special Notes on India’s Employment Pattern:

Official unemployment rate is low statistically.
Many with low income and low productivity are still counted as employed.
Poor people cannot afford idleness – they work in any activity, even if earnings are meagre.
Self-employment dominates in agriculture.
Whole family works in the field – disguised unemployment.
Work and produce shared among family reduces hardship, but poverty persists.
Surplus labour tends to migrate to towns and cities for jobs.

5. Employment in Three Sectors:

Primary sector (agriculture): Most labour absorbing but declining due to disguised unemployment.
Secondary sector: Small-scale manufacturing = most labour absorbing.
Tertiary sector: New services (biotechnology, IT, etc.) are emerging and absorbing more workers.

Story of a Village

1. Traditional Life in the Village:

Initially, each family was self-sufficient.
Families produced food for their own needs.
They made their own clothes and taught their own children.
No formal jobs existed in the beginning.

2. Role of Education and Skill Formation:

One family sent their son to an agriculture college.
He studied agro engineering and returned to the village.
He designed an improved plough, which increased wheat yield.
This created a new job: agro engineer in the village.

3. Economic Impact of Innovation:

Family sold surplus wheat in a neighbouring village.
Earned good profit, which they shared among themselves.
Inspired other families to seek better future for their children.

4. Development of Education in the Village:

Families requested panchayat to open a school.
Panchayat, with government support, established the school.
Teacher recruited from a nearby town.
All children of the village started attending school.

5. New Occupations and Expansion of Economic Activity:

A girl from one family received tailoring training.
She began stitching clothes for villagers – created job of tailor.
Farmers saved time by not travelling far for clothes.
More time in fields – higher farm yields.

6. Beginning of Prosperity:

Farmers produced more than they could consume.
Surplus was sold to people visiting village markets.
New jobs emerged: teacher, tailor, agro engineer, and others.
Village evolved from simple self-sufficiency to a place with modern and diverse economic activities.

7. Key Lesson / Core Concept:

Human capital formation (education, skills, training) leads to:
a. Creation of new jobs.
b. Rise in productivity.
c. Increase in surplus production.
d. Prosperity and economic growth.
Village story highlights how investment in people – growth of economy.

Summary: People as Resource

1. Human Capital as an Asset:

Education and health are key inputs that make people productive.
Literate, skilled, and healthy people become an asset to the economy.

2. Economic Activities and Sectors:

The chapter discusses three sectors of the economy:
Primary sector – agriculture and related activities.
Secondary sector – industries and manufacturing.
Tertiary sector – services like transport, banking, education, health.

3. Problem of Unemployment:

Unemployment remains a major challenge in both rural and urban areas.
Different types include seasonal unemployment, disguised unemployment, and educated unemployment.
Unemployment leads to wastage of manpower resource and slows down growth.

4. Story of a Village – Human Capital in Action:

The story shows how a village that earlier had no job opportunities evolved with education, skills, and innovation.
New occupations like agro engineer, teacher, tailor were created.
This transformation highlights the role of human capital in economic prosperity.

5. Key Lessons:

Investment in education and health – people become productive resources.
Productive people boost growth in all three sectors.
Tackling unemployment is crucial for economic development.
Human capital formation leads to new jobs, higher productivity, and prosperity.

Next & Previous Topics of NCERT/CBSE Economics Class 9 Chapter 2: People as Resource

Topics No.	Topics Name
1	Economic Activities by Men and Women
2	Quality of Population
	Unemployment

MCQs on NCERT Economics Class 9 Chapter 2 Topic – Unemployment

Here are the top exam-oriented MCQ-type questions on “Unemployment” that you should prepare for your CBSE or state board exams:

Question 1. Unemployment exists when—

a) People unwilling to work are not given jobs
b) People who are willing to work at the going wages cannot find jobs
c) Only women stay at home for domestic chores
d) Old people stop working

Answer: b) People who are willing to work at the going wages cannot find jobs

Question 2. Workforce population includes which age group?

a) 0–14 years
b) 15–59 years
c) 18–65 years
d) 20–60 years

Answer: b) 15–59 years

Question 3. Why cannot Sakal’s mother Sheela be called unemployed?

a) She is below 15 years of age
b) She does not want to work outside her domestic domain
c) She is not counted in the family
d) She works as a labourer

Answer: b) She does not want to work outside her domestic domain

Question 4. Why cannot Jeetu and Seetu be called unemployed?

a) They are lazy
b) They do not help in fields
c) They are too small to be part of workforce population
d) They are paid by their parents

Answer: c) They are too small to be part of workforce population

Question 5. Which type of unemployment is common in agriculture?

a) Educated unemployment
b) Seasonal and disguised unemployment
c) Industrial unemployment
d) Cyclical unemployment

Answer: b) Seasonal and disguised unemployment

Question 6. Seasonal unemployment occurs when—

a) People migrate to cities
b) People are not able to find jobs during certain months of the year
c) Factories close down permanently
d) Government bans agricultural labour

Answer: b) People are not able to find jobs during certain months of the year

Question 7. Disguised unemployment occurs when—

a) People appear employed but do not contribute to productivity
b) People are overqualified for their job
c) People work in industries
d) Educated youth are without jobs

Answer: a) People appear employed but do not contribute to productivity

Question 8. A plot requires the service of 5 people but engages 8. The extra 3 are—

a) Technically unemployed
b) Disguised unemployed
c) Seasonal unemployed
d) Educated unemployed

Answer: b) Disguised unemployed

Question 9. Educated unemployment is mostly found in—

a) Rural areas
b) Urban areas
c) Forest areas
d) Coastal areas

Answer: b) Urban areas

Question 10. Which category faces faster unemployment growth?

a) Matriculates
b) Graduates and post-graduates
c) Farmers
d) Skilled technicians

Answer: b) Graduates and post-graduates

Question 11. Which of the following is NOT a consequence of unemployment?

a) Wastage of manpower resource
b) Economic overload
c) Improvement in quality of life
d) Social waste

Answer: c) Improvement in quality of life

Question 12. Unemployment leads to—

a) Increase in poverty and decline in health status
b) Increase in income of poor
c) Rapid industrialisation
d) Full employment in agriculture

Answer: a) Increase in poverty and decline in health status

Question 13. Increase in unemployment is an indicator of—

a) Prosperous economy
b) Depressed economy
c) Industrial growth
d) Agricultural development

Answer: b) Depressed economy

Question 14. When unemployed people are dependent on working population, it results in—

a) Social harmony
b) Economic overload
c) Capital growth
d) Rural prosperity

Answer: b) Economic overload

Question 15. The most labour absorbing sector in India is—

a) Agriculture
b) Secondary sector
c) Tertiary sector
d) Mining

Answer: a) Agriculture

Question 16. In the secondary sector, which activity is most labour absorbing?

a) Mining
b) Heavy industries
c) Small-scale manufacturing
d) Information technology

Answer: c) Small-scale manufacturing

Question 17. In the tertiary sector, which of the following is a growing employment provider?

a) Biotechnology and information technology
b) Traditional farming
c) Brick-making
d) Bullock-cart services

Answer: a) Biotechnology and information technology

Question 18. What new job was created when the boy returned as an agro-engineer?

a) Teacher
b) Tailor
c) Agro-engineer
d) Shopkeeper

Answer: c) Agro-engineer

Question 19. Which job was created when the girl was trained in tailoring?

a) Farmer
b) Tailor
c) Trader
d) Teacher

Answer: b) Tailor

Question 20. Opening of a school in the village led to—

a) Wastage of money
b) Higher dropout rates
c) Creation of teacher’s job and literacy growth
d) Decline in farm output

Answer: c) Creation of teacher’s job and literacy growth

Question 21. The prosperity of the village started with—

a) Migration of workers
b) Improved plough designed by agro-engineer
c) Introduction of tailor shops
d) Opening of a market

Answer: b) Improved plough designed by agro-engineer

Question 22. Which inputs helped in making people assets for the economy?

a) Education and health
b) Unemployment and poverty
c) Migration and labour
d) Agriculture and industry

Answer: a) Education and health

Question 23. Which sector shows disguised unemployment most commonly?

a) Agriculture
b) Industry
c) IT sector
d) Trade