Demographic Dividend and Workforce Planning: Skills, Productivity and Employment Questions

Question 1

Define demographic dividend.

Accepted Answer

Demographic dividend is the potential economic benefit when the working-age population share is high and dependency ratio is low, provided there are skills and jobs.

Question 2

What is workforce planning?

Accepted Answer

Workforce planning is ensuring the right number of people with the right skills are available at the right time to achieve organizational goals.

Question 3

What is employability?

Accepted Answer

Employability is the ability to get a job, perform it effectively and remain employable through relevant skills and attitude.

Question 4

Define productivity.

Accepted Answer

Productivity is the amount of output produced per unit input, commonly measured as output per worker or per hour.

Question 5

State one condition to realize demographic dividend.

Accepted Answer

One condition is adequate job creation for the growing working-age population (any one condition).

Question 6

What is underemployment?

Accepted Answer

Underemployment is a situation where people are working but their skills/time are not fully utilized (low hours or low productivity work).

Question 7

Write any three conditions to realize demographic dividend.

Accepted Answer

Conditions to realize demographic dividend include:

1) Quality education and skill development.
2) Sufficient job creation and entrepreneurship opportunities.
3) Good health and nutrition to improve productivity.

(Any three conditions like women’s participation and infrastructure can be written.)

Question 8

Explain any three components of workforce planning.

Accepted Answer

Components of workforce planning include:

1) Forecasting manpower demand and supply.
2) Recruitment and selection to fill skill gaps.
3) Training, reskilling and succession planning for future roles.

(Any three components can be written.)

Question 9

Explain any three factors that improve productivity.

Accepted Answer

Factors that improve productivity include:

1) Skill training and better education of workers.
2) Technology and better tools/processes.
3) Health, workplace safety and good management practices.

(Any three factors can be written.)

Question 10

Write any three employment challenges during the demographic dividend period.

Accepted Answer

Employment challenges during dividend period include:

1) Jobless growth (output rises but jobs do not rise equally).
2) Skills mismatch between education and market needs.
3) Underemployment and dominance of informal jobs.

(Any three challenges like low female participation and regional imbalance can be written.)

Question 11

Differentiate between demographic dividend and demographic burden (any three points).

Accepted Answer

Demographic dividend and burden differ as follows:

| Basis | Demographic dividend | Demographic burden |
|---|---|---|
| Situation | High working-age share + low dependency | Large population without jobs/skills |
| Outcome | higher productivity and growth | unemployment, poverty, social stress |
| Requirement | skills, health, jobs, good governance | lack of opportunities and mismatch |

(Any three points can be written.)

Question 12

Explain the role of skill development in workforce planning (any three points).

Accepted Answer

Role of skill development in workforce planning:

1) It reduces skill gaps by preparing employees for current and future job requirements.
2) It improves productivity and quality by upgrading technical and digital skills.
3) It supports career growth, retention and succession planning by building internal talent.

(Any three points can be written.)

Question 13

Explain demographic dividend and mention the conditions to realize it.

Accepted Answer

Demographic dividend refers to the potential economic advantage that can occur when the share of working-age population becomes relatively larger and the dependency ratio falls. This situation usually appears in Stage 3 and early Stage 4 of demographic transition. A larger working-age group can increase production, savings and consumption, which can support economic growth.

However, demographic dividend is not automatic. It becomes a real dividend only when certain conditions are met:

| Condition | Why it matters |
|---|---|
| Education and skills | improves employability and productivity |
| Job creation | absorbs the growing workforce |
| Health and nutrition | ensures sustained working capacity |
| Women’s participation | expands labour supply and output |
| Good governance & infrastructure | supports investment and efficient markets |

If these conditions are missing, the large working-age population may remain unemployed or underemployed and the dividend can turn into a burden.

Therefore, demographic dividend is a time-bound opportunity window that must be supported by investments in skills, health and employment generation.

Question 14

Explain workforce planning and its importance for organizations.

Accepted Answer

Workforce planning is the systematic process of ensuring that an organization has the right number of employees with the right skills at the right time to achieve its objectives. It connects business strategy with manpower requirements.

Workforce planning is important for several reasons. First, it helps organizations forecast future skill needs and avoid shortages or excess staff. When expansion or new technology is planned, workforce planning estimates how many people are required and what skills are needed.

Second, it supports better recruitment and selection. By identifying skill gaps, companies can hire the right talent and reduce cost of wrong hiring.

Third, workforce planning promotes training, reskilling and succession planning. Organizations can prepare employees for future roles and leadership positions, reducing dependency on external hiring.

Fourth, it improves productivity and cost control. Right staffing levels reduce overwork, errors and wasted labour hours. It also supports retention by aligning career paths and performance management.

```mermaid
+flowchart LR
+  A[Business goals] --> B[Forecast manpower needs]
+  B --> C[Gap analysis]
+  C --> D[Hire / Train / Reskill]
+  D --> E[Deploy & monitor]
+```

Thus, workforce planning ensures stability in operations and helps organizations remain competitive by building a skilled and productive workforce.

Question 15

Discuss employment and skill challenges in a demographic dividend phase and suggest measures.

Accepted Answer

During the demographic dividend phase, a country experiences a large working-age population and lower dependency. This creates opportunity, but it also creates pressure to generate sufficient employment and build skills.

Major challenges include jobless growth, where output increases but formal job creation is slow. Another challenge is skills mismatch—many youth may have degrees but lack practical, vocational and digital skills needed by employers. Underemployment and informal sector dominance can keep productivity low even when people are “employed.” Low female labour participation and regional imbalance in job availability further reduce the benefit of the dividend.

Measures to handle these challenges include:

| Challenge | Measure |
|---|---|
| Skills mismatch | strengthen vocational training, apprenticeships, industry-linked curriculum |
| Job creation gap | support MSMEs, entrepreneurship, labour-intensive sectors |
| Informal/low productivity work | formalization incentives, productivity tools, better working conditions |
| Low participation | childcare support, safe transport, inclusive workplace policies |

Therefore, to convert the demographic dividend into real economic growth, a country and its businesses must invest in skills, health, job creation and inclusion, so that the workforce becomes productive and employable.

Demographic Dividend and Workforce Planning: Skills, Productivity and Employment

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