Impact of 1991 Liberalization on Employment

Post-1991, worker productivity increased across both urban and rural areas, not just urban (Statement 1 is incorrect). Due to urbanization and migration, the percentage share of rural areas in the total workforce has steadily decreased, not increased (Statement 2 is incorrect). In rural areas, the non-farm sector (construction, services) witnessed increased growth (Statement 3 is correct). However, the overall growth rate of rural employment slowed down post-liberalization compared to the pre-1991 era, a phenomenon often dubbed 'jobless growth' in agriculture (Statement 4 is correct). > One-line conceptual takeaway: Post-1991 rural India saw a structural shift towards non-farm activities alongside a declining overall rural employment growth rate. Answer: (b).