EMPLOYMENT

{ CHAPTER - 7
Meaning of Workers

 A worker is an individual, who is involved in some

productive activity, to earn a living.

 A worker contributes to the process of gross domestic

product (GDP) or gross national product by rendering his
productive activities.

 Some examples of workers are: farmers, managers,

labourers, doctors, barbers, professors, etc.
Who all are included in ‘Workers’?
 It is generally believed that people who are paid by an employer are
workers. However, it is not true.

 It also includes self-employed persons, like shopkeepers barbers,

cobblers etc.

 It also includes those people who remain temporarily absent from

work due to illness, injury or other physical disability, bad weather,
festivals, social or religious functions or some other reasons.

 It also includes those people who help the main workers. It means,
all those who are engaged in economics activities, in whatever
capacity, are workers.

 So the term workers include all those people, who are engaged in
work, whether for others (i.e. paid workers) or for themselves (self-
employed).
 LABOUR FORCE

 All persons who are working (have a job) and though not
working are seeking and are available for work are deemed to
be in the labour force.

 Labour force = Persons working + Persons seeking and/or

available for work.

 In other words, Labour Force is the total of employed and

unemployed person.
How to calculate Labour Force?
 To get the labour force, subtract the following from the
total population:

 Unfit people like old or handicapped persons,

 People who are not willing to work;
 People who are not available for work.
 It must be noted that children below 15 years and old
persons above 60 years of age are excluded from labour
force.

 However, in India, poor children have to take up jobs to

run their family.
 LABOUR FORCE PARTICIPATION RATIO
 The ratio of labour force to total population is called Labour
Force Participation Ratio.

 WORK FORCE
 The numbers of persons, who are actually employed at a
particular time, are known as work force. It includes all those
persons who are actually engaged in productive activities.

 Unemployed people = Labour Force – Work force.

PARTICIPATION OF PEOPLE IN
EMPLOYMENT
 ‘Workers population Ratio’ is an indicator which is used to analyse the employment
situation in the country.

 Workers Population Ratio is calculated by dividing the total number of

workers in India by the population in India and multiplying it by 100.

 IMPORTANT POINTS ABOUT WORKER POPULATION RATIO

 Worker Population ratio is very useful in determining the proportion of population

that is actively contributing to the production of goods and services of a country.
Higher ratio indicated that high proportion of its population is involved in economic
activities.

 Medium or lower ratio indicated that less people are involved in economic
activities.

 It indicates the status of workers in the society and their working conditions.

 By knowing the status with which a worker is placed in an enterprise it may be

possible to determine quality of employment in a country.

 It also enables us to know the attachment which a worker has with his job and the
authority possessed by him over the enterprise and over other co-workers.
WORKER- POPULATION RATIO
IN INDIA
With the help of data given above following
conclusion can be drawn:
 For every 100 persons, 34.7% are

workers in India.

 Higher proportion of rural people - In urban areas, the proportion is 33.9%,

whereas in rural areas, it is about 35.0%.

 Employment opportunities - Rural people have limited resources and

participate more in the employment market. On the other hand, urban people
have a variety of employment opportunities. They look for the appropriate job
to suit their qualifications and skills. In rural areas, people cannot stay at home
as their economic condition may not allow them to do so.

 Education level - In rural areas, many do not go to schools or colleges and

even if some go, they discontinue in the middle to join the workforce. In Urban
areas, a considerable section is able to study in various educational
institutions.

 Higher proportion of male workers - As compared to females (16.5%), more

males (52.1%) are found to be working. It is believed that men are able to earn
high incomes and, therefore, families discourage female members taking up
jobs.
 More women workers in rural areas - Ratio of women workers in
rural area (17.5%) are more than the women workers in urban areas
(14.2%). It happens because people in rural areas cannot stay at
home due to their poor economic condition.

 Underestimation of women worker - The number of women

workers in our country are generally underestimated because many
activities undertaken by them are not recognized as productive work
and other social factors.

 For example, many women are actively engaged in activities within

the house and at family farms, but are neither paid for such work,
nor they are counted as a worker.
MEANING OF EMPLOYMENT
 Employment is an activity which enables a person to earn
means of living.

 It refers to arrangement, by which people earns income or means

of livelihood.

 Employment may be either in the form of ‘Self-Employment’ or

‘Wage employment’.
Employment

Self Wage
Employment Employment

Casual Wage Regular Salaried

Employment Employment
 Self - Employment
 An arrangement in which a worker uses his own resources,
to make a living is known as self-employment.

 Workers who own and operate an enterprise to earn their

livelihood are known as self-employed.

 About 52.2% of workforce in India belongs to this category.

 Self-employment is a major source of livelihood for both men and

women.

 In case of self-employment, a person makes uses of his own

land, labour, capital and entrepreneurship, to make a living.

 Ex- shopkeepers, traders, businessmen etc.

 Wage Employment
 An arrangement in which a worker sells his labour and earns
wage in return is known as wage employment.

 Under wage employment worker is known as employee (or hired

worker) and buyer of labour is termed as employer.

 Workers do not have any other resources (land, capital and

entrepreneurship), except their own labour.

 They offer their labour services to others and in return get wages.

 For e.g.: a doctor running his own clinic is an example of self –

employment. However, if the doctor is employed by a hospital, then
it will be wage employment.

 Wage employment is of two types: (i) Regular workers (ii) Casual

workers
Regular Salaried Employees

 When a worker is engaged by someone or by an enterprise and

is paid wages on a regular basis, then such worker is known
as regular salaried employee.

 Workers are hired on a permanent basis and also get social

security benefits (like pension, provident fund, etc.)

 Regular workers account for 22.8% of India’s workforce.

 For e.g.: Professors, Teachers, Civil Engineer working in the

construction company, etc.
 Casual Wage Workers
 Workers who are casually engaged and, in return, get
remuneration for the work done, are termed as casual workers.

 Casual Workers who are not hired on a permanent basis. It

means, they do not have:
 Regular income
 Protection or regulation form the government
 Job security; and
 Social benefits

 Casual wage labourers account for 25% of India’s workforce.

 Nature of Employment Percentage
1. Self Employed 52%
1. Regular Salaried Workers 23%
1. Casual Workers 25%

TOTAL 100%
DISTRIBUTION OF
EMPLOYMENT BY GENDER
Male Female
Categories
Workers Workers

1. Self Employed 52% 52%

1. Regular Salaried Worker 24% 21%

1. Casual Worker 24% 27%

TOTAL 100% 100%

 Self-Employment - It is the major source of livelihood for
both male workers as well as female workers accounting for
more than 50% of the work force.

 Casual workers – It is the second major source of livelihood

for both men and women. Although the men account for
27% of the workforce which a little more than women i.e.
24%.

 Regular Salaried Employees - It accounts for the least of

all the three forms of employment. However it is engaging to
both men and women workforce in the recent years. The
male workforce accounts for 24% of the workforce and the
female workforce accounts for only 21% of the workforce.
DISTRIBUTION OF
EMPLOYMENT BY REGION

Rural Urban
Categories
Workers Workers

1. Self Employed 58% 47%

1. Regular Salaried Worker 13% 38%

1. Casual Worker 29% 15%

TOTAL 100% 100%

 Self-Employment - It is a major source of livelihood in both urban
areas (47%) and rural areas (58%). In case of rural areas, self-
employed workers are greater as majority of rural people are
engaged in farming on their own plots of land.

 Casual workers - In case of rural areas, casual workers account for

second major source of employment with 29% of work force. Casual
workers in urban areas account for 15%.

 Regular Salaried Employees - In urban areas it is the second major

source with 38% of work force. Urban people have a variety of
employment opportunities because of their educational attainments
and skills. In urban areas the nature of work is different and
enterprise requires workers on a regular basis. However, only 13% of
rural people are engaged as regular salaried employees due to
illiteracy and lack of skills.