Understanding socio-economic issues is crucial for policymaking discussions during the interview because it demonstrates a candidate's awareness of the challenges faced by different segments of society. Policymakers must navigate complex realities like poverty, education, and health care, and how these impact governance. Candidates should be prepared to discuss specific policies and their implications, showing critical analysis and potential solutions. Understanding the relationship between policy and societal needs reflects holistic preparation and readiness to engage in meaningful dialogue, showcasing their aptitude for public service and governance.