Casual wage labourer is a person who is casually engaged in other’s farm or non-farm enterprises and in return receives wages according to the terms of the daily or periodic work contract. For example: worker employed in construction site.
In the given options, the odd man out is (iv) shoeshine boy. Except shoeshine boy others (i.e. rickshaw puller who works under a rickshaw owner, mason and mechanic shop worker) are hired employees. They are getting salary either in cash or in kind for their services rendered for their employees. The shoeshine boy is self-employed and earns profit.
An establishment with four hired workers is known as informal sector establishment.
Reason: Informal sector consists of private sector enterprises which employ less than 10 workers on regular basis.
The newly emerging jobs are found mostly in the service sector.
Reason: Primary sector is already overcrowded and the growth rate of manufacturing sector is not satisfactory to generate employment whereas service sector is growing at faster pace. Thus, the newly emerging jobs are found in service sector.
In the given options, the odd men out are (iii) a cashier in mother dairy and (v) transport operator because they are working as regular salaried employee in the formal sector.
Worker population ratio refers to the proportion of labour force in total population. It is obtained by dividing the total number of worker of the economy by total population in the economy multiplied by 100. It is used as an indicator to analyse the employment situation in the country. The higher the ratio, the higher will be the engagement of people and lower the ratio, the lower will be the engagement of people in economic activities.
A person engaged in any productive (economic) activity contributing to the flow of goods and services (i.e. Gross Domestic Product) in the economy is called worker. It includes person getting remuneration by an employer for their work as worker and self-employed.
Yes, it is necessary to create employment in the formal sector rather than in the informal sector. The following could be the reasons:
Owing to these reasons, employment in formal sector is more secure and certain. Thus,creating employment in formal sector will not only absorb the surplus labour but will also safeguard the interest of employees. This will also help in reducing poverty and income inequalities.
Yes, Meena will be considered as worker because she is contributing to the total production of goods and services, in the economy. She works in her husband’s cloth shop along with performing household chores. A person engaged in any productive (economic) activity contributing to the flow of goods and services (i.e. Gross Domestic Product) in the economy is called worker.
Yes, Raj can be considered as worker because he is contributing to the total production of goods and services in the economy. A person engaged in any productive (economic) activity contributing to the flow of goods and services (i.e. Gross Domestic Product) in the economy is called worker.
No, a beggar, a thief, a smuggler or a gambler cannot term as workers because they are not involved in any productive economic activity which contributes to the GDP in the economy. A person engaged in any productive (economic) activity contributing to the flow of goods and services (i.e. Gross Domestic Product) in the economy is called worker.
The following features which help us in knowing whether a worker is working in the informal sector or formal sector:
No, he is employed. Victor is able to get work only for two hours in a day and rest of the day he is looking for work. Economists defines unemployed person as one who is not able to get employment of even one hour in half day. It implies that he is underemployed worker. Underemployment is a situation in which a person gets work for lesser time than the time the person actually able or willing to work.
Victor is employed for the half day. According to current daily status approach if a person works for more than 1 hour but less than 4 hours he/she classified as working for half day and seeking/available for work or neither seeking nor available for work for other half of the day depending on whether he was seeking/available for work or not.
The person like Victor may be dropping news papers, selling milk in the morning, selling flowers and garland in front of temple, sweeping road, etc.
After independence Indian planning was aimed at increasing employment and national output. Initially Gross Domestic product of India grew at positive rate (keeps on fluctuating) and was higher than employment growth rate (around 2 %). A good point was that these two rates remain close to each other.
But it is a dismal fact that in the late 1990s, employment rate started to decline. It has decline to very low level as it was in the early stage of planning. This led to widening of gap between the growth of GDP and employment. Economists propound this growth as ‘Jobless growth’ because Indian economy was producing more goods and services without generating more employment.
The following are the reasons for less women employment on regular basis:
Region | Estimates of population (in crores) | Worker population ratio | Estimated No. workers (in crores) |
Rural | 71.88 | 41.9 | 71.88/100 X 41.9 = 30.12 |
Urban | 28.52 | 33.7 | ? |
Total | 100.40 | 39.5 | ? |
Region |
Estimates of population (in crores) |
Worker population ratio |
Estimated No. workers (in crores) |
Rural |
71.88 |
41.9 |
71.88/100 X 41.9 = 30.12 |
Urban |
28.52 |
33.7 |
28.52/100 X 33.7= 9.61124 |
Total |
100.40 |
39.5 |
100.40/100 X 39.5= 39.65 |
Estimated workforce in urban area for India = 9.61124 crores
Estimated total workforce for India = 39.65 crores
Answer: Compared to urban women, more rural women are found working. In urban areas, for every 100 urban women, 15 women are engaged in economic activities whereas in rural areas, for every 100 rural women, 25 women are engaged in economic activities. It is because:
Compared to the 1970s, there has been a subsequent change in the distribution of the workforce across various industries. At the dawn of independence, the Indian economy was considered as an agrarian economy because the majority of the Indian population was depended on agriculture for their livelihood.
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India along with other developing countries is trying to reduce this dependence. There has been a substantial shift from farm work to non-farm work in the distribution of the workforce. In 1972-73, around 74 % of the workforce was engaged in primary i.e. agriculture and allied activities and in 2011-12, this proportion has declined to around 50 %.
In 1972 – 73, the secondary and services sectors were in their budding stage. The shares of these sectors have increased from 11 to 24 % and 15 to 27 % respectively in 2011-12.
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Over the last four decades, 1972-2012, people have moved from self-employment and regular salaried employment to casual wage work. Though the percentage share of self-employed has decreased but it is still dominating the Indian employment status.
It has also been observed that the percentage share of casual wage labor has increased. Economists propound this phenomenon as casualization of the workforce.
I would like to give following advices to the village panchayat that can improve our village along with generating employment:
Economists generally divide an economy into three broad sectors. They are; a) primary sector, b) secondary sector and c) tertiary sector. Primary sector includes agriculture and allied activities. Secondary sector consists of manufacturing and construction activities and in tertiary sector various types of services e.g. transport, communication, banking, insurance, trade etc. are included.
The following table shows the percentage distribution of working persons in different sectors during the year 2011-12.
Industrial Category |
Place of residence |
Sex |
Total Working population (%) |
||
Rural |
Urban |
Male |
Female |
||
Primary sector Secondary sector Tertiary sector |
66.6
16.0
17.4 |
9.0
31.0
60.0 |
43.6
25.9
30.5 |
62.8
20.0
17.2 |
48.9
24.3
26.8 |
Total |
100 |
100 |
100 |
100 |
100 |
The table clearly shows that primary sector is the main source of employment in India, which provides employment to about 50% of the workforce. Secondary sector provides employment to only 24.3% of workforce. 26.8% of the workers are employed in the service sector.
This table also shows that about two-thirds of the workforce in rural areas depend upon agriculture or allied activities. About 16% of rural workers are working in the secondary sector. Service sector provides employment to about 17% of rural workers.
Primary sector is not a major employment provider in urban areas. In urban areas people work mainly in the service sector. About 60% of urban workers are employed in the service sector. The secondary sector provides employment to about 31% of urban workforce.
Since, both men and women are heavily employed in the primary sector; concentration of women workers is very high in primary sector. About two-thirds of women workforce is employed in primary sector whereas about 45% of men are employed in that sector.
The following are the reasons for higher regular salaried employees in urban areas than in rural areas:
After independence, Indian government adopted policies that favour the development especially of basic infrastructure in urban areas. Since the basic infrastructure is imperative for the establishment of any factory, industry, etc. this led to the development of industries, skilled based professional units in urban areas. Thus, it promoted higher regular salaried employees in urban areas.
Government has implemented various laws to regulate formal sectors that promote regular employment. These laws are prominently followed in urban areas. Thus, most of the industries in urban areas follow these rules and hire workers on regular basis which may not be the case in rural areas.
An enterprise in urban area engaged in work that requires workers on regular basis whereas rural areas predominated by agricultural sector which is heavily depended on monsoon.
Place of Residence | Workforce (in millions) | ||
Male | Female | Total | |
Rural | 125 | 69 | 195 |
Urban | 32 | 7 | 39 |
Analysis of the given table is summarised below:
Thus, it can be concluded from the given table that there is low productivity, most of the people are employed in rural areas especially in agricultural and allied activities which require low skill, low female participation in India in 1972-73.
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