Which of the following is a feature of the 'Polarisation' of the labour market observed in many advanced economies?
A. Uniform growth across all skill levels
B. Only decline in high-skill jobs
C. Only growth in middle-skill jobs
D. Growth in high-skill and low-skill employment accompanied by a decline in middle-skill routine jobs
Answer: Option D
Solution (By JKSSB Mock Tests)
Job polarisation refers to the simultaneous growth of employment at the high and low ends of the skill distribution and the relative decline of middle-skill occupations that involve routine tasks susceptible to automation.
Explanation:
Hysteresis in unemployment means that high unemployment can become self-perpetuating through loss of skills, reduced employability or changes in wage-setting behaviour, so that the natural rate itself rises.
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