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If a country's working-age population is 70 percent but unemployment is 25 percent, which conclusion is most appropriate?

Answer and explanation

Correct answer: There is a demographic-dividend opportunity but it is not being fully realized

A working-age share of 70 percent suggests a potentially favourable age structure: many people are in the ages when they can work and produce income. However, a 25 percent unemployment rate shows that a substantial part of this potential labour force is not finding jobs. The country therefore has the conditions for a demographic dividend, but the opportunity is not being fully converted into economic gains. Employment, skills, health, and productive investment are needed to realize it.

Option A is correct because it combines the opportunity indicated by the age structure with the constraint shown by unemployment. Option B is wrong because 70 percent is not a small working-age share. Option C does not follow, since a large working-age population can still support dependents. Option D reverses the relationship: high unemployment prevents, rather than strengthens, the demographic dividend. The exact unemployment measure may vary, but the conclusion remains appropriate.

Related tags

UnemploymentDemographic DividendWorking Age ShareLabour MarketAge StructurePopulation CompositionGeographyClass 12 Mcq

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