Question

Consider the following data on Education and Employment in Kerala :

Education Level	Share in Labour Force (%)	Unemployment Rate (%)
Below secondary	40	4
Secondary/Higher secondary	35	10
Graduate and above	25	18

Which conclusion is MOST valid?

• A. Kerala's unemployment problem is concentrated among the educated
• B. Higher education guarantees employment
• C. Less educated workers face the highest unemployment risk
• D. Unemployment rates are evenly spread across groups

Answer 1

Answer:

A. Kerala's unemployment problem is concentrated among the educated

• Unemployment Rate Trend: The data clearly shows a direct, positive correlation between the level of education and the unemployment rate. The group with the highest level of education (Graduate and above) has the highest unemployment rate (18%).

• Magnitude: The unemployment rate for graduates (18%) is significantly higher than that for those with secondary education (10%) and drastically higher than for the least educated group (4%).

This pattern is a known feature of the Kerala economy, often attributed to a mismatch between high educational aspirations and the slow growth of high-wage, white-collar jobs within the state, which compels the educated to wait for better opportunities or migrate.