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If child dependency is falling and the working-age share is rising but job creation is stagnant, which risk may increase?

Answer and explanation

Correct answer: Unemployment and underemployment

The governing concept is that a favourable age structure creates only a potential demographic dividend, not an automatic economic result. Falling child dependency and a rising working-age share can provide more potential workers and fewer children to support. However, if the economy does not create enough productive jobs, many entrants may remain unemployed, work fewer hours than desired, or accept low-productivity employment. Consequently, unemployment and underemployment may increase, and the possible dividend may be lost or delayed. Option C identifies this labour-market risk. Options A and D are biologically and demographically impossible statements, while B incorrectly assumes that age structure alone guarantees economic gains.

Related tags

Demographic DividendUnemploymentUnderemploymentWorking-Age PopulationAge StructurePopulation CompositionGeographyClass 12 Mcq

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