Chapter - Employment grow informalisation and other issues
Defines
*Worker: worker is an individual, l who is involved in some economic activity, to earn a
living .
*Labour force: all persons, who are working and through not working, are seeking and
available for work is called labour force .
Labour force = person working + person seeking the job.
*Labour F
*Labour force participation rate : the ratio labour force to total population is called labour
force participation rate.
* Work Force: the number of person, who are actually employed at a particular time are
known as workforce
*Number of unemployed people : unemployed people = labour force - work force.
*Casual workers who are casually engaged and, in return, get income for the work done,
are termed as casual workers .
*Jobless growth it refers to a situation when the economy able to produce more goods and
services without increasing the job opportunities.
*Casualisation of a workforce the process of moving from self employment and regular
salaried employment to casual work is known as casualisation of the workforce.
*Informalisation of workforce refers to a situation whereby the proportion of workforce in
the informal sector increases.
*Disguised unemployment :it refers to a state in which more people are engaged in work
than is really needed.
*Open unemployment :it refers to that economic phenomenon in which persons are able
and willing to work at a prevailing wage rate, but fail to get work.
Q1. " It is necessary to create employment in the formal sector rather than in the informal
sector" . defend or refute the given statement with the valid reason.
Ans. The given statement is true and can be defended
* formal sector of employment provides greater job security as compared to informal sector
* under the formal sector the people are entitled to better social security benefits.
Q2 compared to urban women, more than rural women are found working. Why?
Ans. More rural women are found working because of their poor economic condition as
compared to urban women.
Q3 Why are regular salaried employees more in urban areas than in rural areas?
Ans. Regular salaried employees or more than in urban areas because urban people have
a variety of employment opportunities due to their education and skills. Moreover the nature
of work is different in urban areas and requires workers on a regular basis.
On the other hand only 13% of rural people are engaged in the formal sector due to lack of
literacy and skills
Q4. Do you think that during 1995-2010, employment generated in the country is
commensurate with the growth of GDP in India? how?
Ans. No, employment generated in the country does not match with the growth of GDP
because
*During 1952-2010 India witnessed jobless hueconomic growth where GDP increased
without increasing employment opportunities.
* It happened due to the use of advanced technology . It failed to generate new employment
opportunities .
Q5. Analyse the recent trends in sectoral distribution of the workforce in India .
Ans. The distribution of work force in India in different sectors
*primary sector is the main source of employment 44.6% the majority of workers
*Secondary sector provides employment to only 24.4%workforce
* 31% of workers are in the engaged service sector .
Q6. Why are lesser women found in regular salary employment ?
Ans. In India lesser women are found in regular salaried employed because
* such type of jobs required skills and high level of literacy
* lack of mobility among women in India
"due to some social constraint (family boundaries)
Q7. How will you know whether a worker is working in the informal sector?
Ans. A worker is working informal sector if
*Such workers work in a private enterprise with less than 10 workers .
* Such workers does not get regular income and does not pay any protection or regulation
from the government
*Such worker has a risk of being dismissed.
Q1. Difference between formal sector informal sector
Ans.
Formal sector Informal sector
Workers who work in organised sector Workers work in unorganised sector
They are entitled to social security benefits They are not entile to social security benefits
such as provident fund gratuity
Workers can be protected by the union There are no such labour laws and trade
and trade laws union
They earn more income than the informal They earn than the formal sector
sector
Formal sector worker only 6% in India 94% workers in the informal sector
Q2. What is the meaning of unemployment?
Ans unemployment refers to a situation in which people are willing and able to work at the
existing wage rate, but do not get work.
Q3. What are the sources of unemployment data?
Ans. Reports of Census of India
2. National statistical office' s report of employment and unemployment situations
Q.Give meaning of Disguised unemployment.
Ans. it is a situation where in the number of workers engaged in a work is more than
actually required .
Q define Seasonal unemployment.
Ans it occurs at a certain seasons for the year is known as singer seasonal unemployment
* Open unemployment refers to the economic phenomenon in which persons are able and
willing to work at the prevailing wage rates , but fail to get work.
Q What are the main causes of unemployment ?
Ans. Slow rate of economic growth the actual growth rate is always lies far below the
targeted rate .
2. Population explosion the rapid rate of population growth is another reason
It has not been possible to generate so many employment opportunities to absorb larga
labour force.
3. Under development agriculture heavy pressure of population on land and old methods
of agriculture output was very low
4. Defective educational system in India is full of defects. Large number of colleges give
only degrees not a practical knowledge
5. Slow growth of industry due to shortage of capital and lack of modern and advanced
technology industrial sector could not proper growth.
Q What are the remedial measures for unemployment !
Ans. Accelerate growth rate of GDP
2. Control of population growth .
3. Development of agriculture sector
4. Encouragement of small scale industry
Q Which government policies has taken by the employment generation?
Ans. Government has taken many initiatives to generate employment for example
MANREGA.
Government have played an important role in generating employment in 2 aspects
1 Direct employment the government provides by employing people in various
departments for administrative purpose and government hotels, transportation ,school
,hospital .
2. Indirect employment when increased demand of goods and services of government
enterprise, private enterprise providing raw material to government enterprises . As a result,
the number of employment opportunities in the economy will increase. This increase in
employment is known as indirect employment .
MANREGA Mahatma Gandhi National Rural Employment Guarantee
Act was started in 2005 . It provides employment to rural unskilled labour for 100 days in a
year.
