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If a country has a large working-age population but skill levels are very low, what risk exists?

Answer and explanation

Correct answer: Demographic dividend may not be fully realized

A large working-age population creates a potential economic advantage, but numbers alone do not guarantee development. Workers need education, technical and practical skills, good health, productive jobs, and supportive institutions. If skill levels are very low, many people may remain unemployed, underemployed, or limited to low-productivity work. The country may then fail to convert its favourable age structure into higher income, savings, productivity, and public welfare. The demographic dividend is therefore an opportunity that requires investment and effective policies.

Option A is correct because weak skills can prevent a country from fully using its large working-age group. Option B is wrong because pension pressures do not immediately disappear and may still exist. Option C is incorrect because fertility does not automatically become zero when the working-age population is large. Option D is also wrong: an elderly population does not immediately decline merely because many people are of working age.

Related tags

Demographic DividendSkill LevelHuman CapitalWorking Age PopulationAge StructurePopulation CompositionGeographyClass 12 Mcq

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