CBSE Class 11 Economics Revision Notes Chapter 6 Employment: Growth, Informalisation and Other Issues

Employment: Growth, Informalisation and Other Issues explains how people work, where they work and why job quality matters in India. For CBSE Class 11 Economics, this chapter covers workers, workforce participation, self-employment, informalisation, unemployment and government employment generation.

Employment is not only about earning money. It also gives people dignity, self-worth and a role in society. In Indian Economic Development Chapter 6, students learn how employment is measured, how workers are classified and why informal jobs remain a major concern in India.

Use these CBSE Class 11 Economics Indian Economic Development Revision Notes Chapter 6 for the 2026–27 academic year to revise economic activity, workers, worker-population ratio, self-employed and hired workers, sectoral distribution, jobless growth, informalisation, unemployment and government employment generation.

Key Takeaways

• Workers contribute to national income: Anyone engaged in economic activity is counted as a worker.
• Worker-population ratio measures participation: It shows the percentage of people actively involved in production.
• Self-employment is a major source of livelihood: A large share of India’s workforce is self-employed.
• Informalisation is a key issue: Most workers do not get regular wages or social security benefits.
• Unemployment has many forms: Open, disguised and seasonal unemployment are important for revision.

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Employment Growth Informalisation and Other Issues Class 11 Notes: Chapter at a Glance

This chapter studies the quality, pattern and problems of employment in India. It explains who is counted as a worker, how employment is distributed across sectors and why informal employment creates insecurity for workers.

Economic Activity, Worker and Workforce in Economics Chapter 6 Employment Notes Class 11

Economic activities are activities that contribute to the gross national product of a country. People engaged in these activities are called workers.

A worker may be paid or self-employed. A person who helps in family work or self-owned work may also be counted as a worker if the activity contributes to production.

Who is a Worker in Indian Economic Development Chapter 6?

A worker is a person engaged in an economic activity. Workers include people working in farms, factories, offices, shops, transport, banks, services and home-based production.

Workers Include

• farmers
• factory workers
• shopkeepers
• transport workers
• office employees
• self-employed professionals
• home-based producers
• people temporarily away from work due to illness or festivals
• helpers in family enterprises

Self-employed people are also workers because they produce goods or services for income.

Worker-Population Ratio in CBSE Notes Class 11 Economics Chapter 6

Worker-population ratio is an important indicator used to study employment.

It shows the proportion of people who are actively contributing to the production of goods and services.

Worker-Population Ratio = Total Number of Workers ÷ Total Population × 100

This ratio helps compare employment participation between rural and urban areas, men and women, and different time periods.

Rural and Urban Worker Participation in India

Worker participation differs between rural and urban areas. Rural worker participation is often higher because rural households have limited income sources and more people join work early.

Urban areas have more educational institutions and varied job choices. Many people spend more years studying before entering the workforce.

Many activities done by women at home or on family farms are not counted as paid work. This leads to underestimation of women’s contribution.

Self-Employed and Hired Workers in Class 11 Indian Economic Development Chapter 6 Notes

Workers can be classified based on their employment status.

Self-employment is a major source of livelihood in India. Casual wage labourers are usually the most vulnerable because they lack job security and regular income.

Self-Employment in India

Self-employed workers own and operate their work activity. They do not work under an employer.

Examples include:

• farmers cultivating their own land
• shop owners
• handloom weavers
• doctors running clinics
• lawyers
• transport operators
• street vendors

Self-employment is more common in rural areas because many people depend on farming and family-based activities.

Casual Wage Labourers in Employment Growth Informalisation and Other Issues Class 11 Notes

Casual wage labourers are hired temporarily. They may be paid daily, weekly or according to work done.

They often face:

• irregular work
• low wages
• no paid leave
• no job security
• no provident fund
• no pension
• no health benefits

Casual workers are vulnerable because they can lose work easily and may not have bargaining power.

Regular Salaried Employees in Economics Chapter 6 Notes

Regular salaried employees work for an employer on a regular basis and receive wages or salaries.

They are more common in urban areas because towns and cities have more offices, factories, schools, hospitals, shops and service-sector enterprises.

Regular employment is considered better when it includes job security and social protection.

Employment in Firms, Factories and Offices

During economic development, workers usually shift from agriculture to industry and services.

This movement is called structural change in employment.

In India, the primary sector still provides employment to many workers. Urban workers are more concentrated in the service sector.

Sector-Wise Distribution of Workforce in India

Sector-wise distribution shows how workers are spread across primary, secondary and tertiary sectors.

A shift from primary to secondary and tertiary sectors is expected during development. However, if people leave agriculture but do not get secure jobs elsewhere, job quality becomes a concern.

Growth and Changing Structure of Employment

India’s GDP has grown over the years, but employment growth has not always kept pace.

When output increases without enough new jobs, the situation is called jobless growth.

Jobless growth is a serious issue because the economy may produce more without giving enough people stable work.

Jobless Growth in Class 11 Economics Chapter 6 Notes

Jobless growth means a situation where production and income grow, but employment does not increase at the same pace.

This happens when growth comes from:

• capital-intensive industries
• automation
• technology-led production
• service activities that need fewer workers
• higher productivity without more hiring

Jobless growth creates pressure on the government to generate employment, especially for low-income households and rural workers.

Casualisation of Workforce in India

Casualisation means an increase in the share of casual wage workers in the total workforce.

It shows a shift from more secure work to less secure work.

Casualisation makes workers vulnerable even when they are employed.

Formal and Informal Sector in CBSE Class 11 Economics Chapter 6

Workers are also classified into formal and informal sectors.

Formal sector workers usually get better wages, job security and social security benefits. Informal sector workers often lack these protections.

Difference Between Formal Sector and Informal Sector

Informal sector includes farmers, agricultural labourers, small business owners, construction workers, headload workers and many self-employed workers.

Informalisation of Indian Workforce

Informalisation means the growing dominance of informal employment in the workforce.

Even with economic growth, many workers remain outside the protection of formal labour laws. Informal workers may not get maternity benefits, provident fund, gratuity, pension or health security.

Why Informalisation is a Concern

• Workers lack regular income.
• Social security is limited.
• Bargaining power is weak.
• Workers may shift from secure jobs to insecure jobs.
• Poverty and vulnerability increase.
• Families may withdraw children from school during income shocks.

Informalisation shows that employment quantity alone is not enough. Job quality also matters.

Ahmedabad Example of Informalisation

The chapter uses the example of Ahmedabad’s textile mill workers to show how formal workers can be pushed into informal work.

When textile mills closed, many permanent and non-permanent workers lost jobs. Workers who earlier had income security, social security and trade union support were pushed into casual and informal work.

This example shows that informalisation can reduce a worker’s living standard and family security.

Unemployment in Employment Growth Informalisation and Other Issues Class 11 Notes

Unemployment is a situation where people are willing and able to work but do not get work.

The National Statistical Office identifies unemployed persons as those who are not working because of lack of work but are seeking work or available for work.

Different sources may give different estimates, but they help understand unemployment patterns.

Types of Unemployment in Class 11 Economics Chapter 6 Notes

The chapter mainly discusses open, disguised and seasonal unemployment.

These forms are common in India, especially in rural areas.

Disguised Unemployment in Rural India

Disguised unemployment happens when more people are engaged in work than required.

Example: A farm needs three workers, but six family members work on it. If three workers are removed, total output may not fall. The extra workers are disguisedly unemployed.

This is common in agriculture because land is limited and many family members depend on it.

Seasonal Unemployment in Agriculture

Seasonal unemployment occurs when people get work only during certain seasons.

Agriculture has busy periods such as sowing and harvesting. During the remaining months, many rural workers may not find farm work.

This is why some rural workers migrate to urban areas during lean seasons and return to villages when farm work resumes.

Government and Employment Generation in India

The government plays a role in creating employment directly and indirectly.

When government enterprises increase output, private enterprises using their goods may also expand production and hire more workers.

MGNREGA and Employment Generation

The Mahatma Gandhi National Rural Employment Guarantee Act, 2005, provides guaranteed wage employment to rural households willing to do unskilled manual work.

It aims to support people who need employment in rural areas.

MGNREGA is important because it:

• provides wage employment
• supports low-income rural households
• creates community assets
• helps reduce seasonal unemployment
• supports rural purchasing power

Employment Generation Programmes in India

Many government programmes reduce poverty through job creation. These programmes provide employment and create rural assets.

They may focus on:

• primary education
• primary health
• drinking water
• nutrition
• rural roads
• sanitation
• housing support
• wasteland development
• income-generating assets
• community asset creation

Employment generation programmes are important for households that cannot find regular work.

Quick Revision Table for CBSE Class 11 Economics Indian Economic Development Revision Notes Chapter 6

Important Terms from Economics Chapter 6 Employment Notes Class 11

Useful Links for Class 11 Economics Indian Economic Development