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A country's working-age population is 68 percent, but unemployment is very high. What conclusion follows regarding the demographic dividend?

Answer and explanation

Correct answer: The dividend may remain limited despite a large working-age population

A demographic dividend is a possible economic benefit from having a relatively large working-age population compared with dependents. However, the size of this group alone does not guarantee the benefit. Workers must be healthy, educated, skilled, and able to find productive employment. When unemployment is very high, many people counted as working-age are not earning or producing at their potential. The population structure may create an opportunity, but that opportunity is not automatically converted into higher income or output.

Consequently, option B is correct. A working-age share of 68 percent can provide favourable conditions, yet the dividend may remain limited if jobs, skills, investment, or suitable institutions are inadequate. Option A wrongly treats a large working-age share as proof of full success. Option C confuses age composition with dependency, and option D has no logical connection with unemployment. The key distinction is between demographic potential and its effective economic use.

Related tags

Demographic DividendUnemploymentWorking Age PopulationEconomic DevelopmentAge StructurePopulation CompositionGeographyClass 12 Mcq

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