Chapter - 7 Employment

INTRODUCTION
Work plays an important role in our lives, as individuals and as members of society. Every rational man aims to
get engaged in certain work to earn a living. Some work on farms, in factories, banks, shops and few other work
at home.
Important points about work
 People work for ‘earning’ a living. Employment is an activity from which a person earns means of
livelihood.
 Some people get money by inheriting it. However, it does not completely satisfy anybody. Being employed
in work gives us a sense of self-worth and enables us to relate ourselves meaningfully with others.
 Every working person contributes to national income by engaging in various economic activities.
 We work not only for ourselves but also for those who depend on us, like our family. It gives us a sense of
accomplishment when we work to meet their requirements.
 The study of working people gives us insights into the quality and nature of employment in our country and
helps in understanding and planning our human resources.
 It helps in analysing the contribution made by different industries and sectors towards national income.
 It also helps us address many social issues with as exploitation of marginalised sections of the society, child
labour, etc.

BASIC CONCEPTS
Meaning of Worker
A worker is an individual, who is involved in some economic activity, to earn a living.
 A worker contributes to the process of gross domestic product (GDP) 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, this is not true.
 It also includes self-employed persons, like shopkeepers, barbers, cobblers, etc.
 It also include 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 economic
activities, in whatever capacity, are workers.

Nature of Employment in India is versatile.

 Some get employment throughout the year, year while other get employed for only a few months in a year,
like seasonal workers.
 Many workers do not get fair wages for their work.
 While estimating the number of workers, all those who are engaged in economic activities are included as
employed.

Number of Workers
 During 2011-12, the total number of workers in India was 473 million. Since majority of our people reside
in rural areas, the proportion of workforce residing there is higher. So out of 473 million workers, nearly
three –fourth were rural workers.
 Around 70% of total workers are male workers and the rest are female workers.
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 Rural women participating in larger number in productive activities as compared to urban women. Among
the rural workers, the share of female workers is more than one–third, whereas share is around one–fifth in
case of urban workers.
 In rural areas, many women carry out works like cooking, fetching water and fuel wood and participation in
farm labour. They are either not paid wages in cash or are paid in the form of grains. For this reason, these
women are not categorised as workers. However, it is often argued that these women should also be called
workers.

Labour Force
All persons who are working (have a job) and though not working but are seekingwork and are available for
work.
Labour Force = persons working + Persons seeking and/or available for work.
In other words, labour Force is the total of employed and Unemployed persons.

How to calculate labour force?

To get the labour force, subtract the following from the total population;
(i) Unfit People like old or handicapped persons;
(ii) People who are not willing and not availblr for work.
(iii) Children below 15 years and old persons above 60 years of age.

Labour Force participation Rate

The ratio of labour force to total population is called Labour Force Participation Rate.

Work Force
The number of persons, who are actually employed a ta particular time are known as work force. It includes
all those who are actually engaged in productive activities.

Calculation of Number of Unemployed people

With the help of labour force and work force, we can calculate the number of unemployed people. If we
subtract work force from labour force, we get number of unemployed people.
Unemployed People = Labour Force – Work Force

PARTICIPATION OF PEOPLE IN EMPLOYMENT

“Worker Population ratio” is an Indicator which is used to analyse the employment situation in the country.
‘Worker- population ratio is calculated by dividing the total number of workers in India by the
Population** In India and multiplying it by 100.

Population is defined as the total number of people who reside in a particular locality at a particular point of
time.

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 indicates that high proportion of its population is involved in economic activities.
 Medium or lower ratio indicates that less people are involved in economic activities
 The worker- population ratio 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.
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 Table 7.1; Worker- population Ratio in India (1999 -2000)
Sex Workers Population Ratio
Rural Urban Total
Men 54.3 54.6 54.4
Women 24.8 14.7 21.9

Total 39.9 35.5 38.6

With the help of data given in Table, the following conclusions are drawn;
 For every 100 persons, 38.6 per cent are workers in India.
 Higher Proportion of Rural people: In urban areas, the proportion is 35.5 %, whereas in rural India, the ratio
is about 39.9 %.
 Employment Opportunities: Rural people have limited resources and participate more in the employment
market. On the other hand, urban people have a variety employment opportunities. They look for the
appropriate job to suit their qualifications and skills.
 Education level: In rural areas, mnay 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 (21.9%), more males (54.4%) are found to be
working. Men are able to earn high incomes and, therefore, families discourage female members taking up
jobs.
 More Women workers in rural area; Ratio of women workers in rural areas (24.8%) is more than the
women workers in urban areas (14.7%). It happens because people in rural areas cannot stay at home due to
their poor economic conditions.
 Underestimation of Women Workers: The number of women workers in our country are generally
underestimated because may activities undertaken by them are not recognised as productive work. For
example, many women are actively engaged in activities with in 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 activity which enables a person to earn means of living. It refers to an arrangement, by which a
person earns income or means of livelihood. Employment may be either in the form of self-employment or
wage 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% 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.
 For example, shopkeepers, traders, businessmen, etc.

Wage Employment
An arrangement in which a worker sells his labour and earns wages in return, it known as wage
employment. Under wage employment, worker is known as employee (or hired worker) and buyer of labour is
termed as employers.
 Workers do not have any other resources (land, capital and entrepreneurship), except their own labour.
 They offer their labour services to others and in returns get wages.

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 For example, 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 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 just 14.6 per cent of India’s workforce (Refer Table 7.2)
 For example,, Professors, teachers, Civil engineer working in the construction company, etc.
Casual Workers
Workers who are casually engaged and, in return, get remuneration for the work done, are termed as casual
workers.
 Casual Workers are not hired on a permanent basis. It means, they do not have: (I) Regular Income; (ii)
Protection or regulation from the government; (iii) Job Security; and (iv) Social benefits.
 Account for 30% of India’s workforce

From the above figure, the following points are noticed:

 Self –employment is a major source of livelihood for both men (51%)and women (56%)
 Casual workers account for the second major source for both men (29%) and women (31%).
 In case of regular employment, men are found in greater proportion (20%), whereas women form only 13%.
The reason for this could be skill requirement as regular skills and a higher level of literacy.
Distribution of Employment by Region
Distribution of employed workers by region enables us to know the quality of employment and the attachment
of workers to their jobs.
 Self –Employment: It is a major source of livelihood in both urban areas (43%) and rural areas (56%), but,
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 35% of workforce. Casual workers in urban areas account for 15%.
 Regular Salaried Employees: In urbanareas, it is the second major source with 42% 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 enterprises require works on a regular basis. However, only
9 % of rural people are engaged as regular salaried employees due to illiteracy and lack of skills.

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Distribution of Employment in Different Sectors
In the course of economic development of a country, labour flows from agriculture and other related activities
to industry and services. In this process, workers migrate from rural to urban areas.
Eventually, at a much later stage, the industrial sector begins to lose its share of total employment as the service
sector enters a period of rapid expansion. Generally, we divide all economic activities into following 8 different
industrial divisions;
(i) Agriculture (ii) Mining and Quarrying (iii) Manufacturing (iv) Electricity, Gas and Water
Supply (v) Construction (vi) Trade (vii) Transport and Storage (viii) Services
For simplicity, all the working persons engaged in these divisions can be clubbed into three major sectors:
1. Primary Sector: In includes (i) and (ii), i.e. Agriculture and Mining and Quarrying.
2. Secondary Sector: It includes (iii), (iv) and (v), i.e. Manufacturing , Electricity, gas and water supply
and Construction.
3. Tertiary Sector: It includes (vi), (vii) and (viii), i.e. Trade, Transport and Storage, and services.

Table : Distribution of Workforce by Industry, 2011-12 (in %)

Industry Category Place of Residents Sex Total
Rural Urban Male Female
Primary Sector 64.1 6.7 43.6 62.8 48.9
Secondary sector 20.4 35.0 25.9 20.0 24.3
Tertiary/service Sector 15.5 58.3 30.5 17.2 26.8
Total 100.0 100.0 100.0 100.0 100.0

 Primary sector is the major source of employment for majority of workers in India. About 49% of
workforce is in primary sector. Tertiary sector is the next main source of employment with about 27% of
workforce. Secondary sector provides employment to only 24% of workforce.
 Primary sector is main source of employment in rural areas (about 64%) as against employment in urban
areas (about 7%)
 Secondary sector is not a major source of employment for people in rural areas (about 20%) as against
employment in urban areas (about 35%).
 Service sector is a major source of employment for people in urban areas (about 60%) as against
employment in rural areas (about 15%).
 Though both men and women workers are concentrated in the primary sector, women workers’
concentration is very high. About 63% of the female workforce is employed in the primary sector
whereas less than half of male workers in that sector. Men get opportunities in both secondary and
service sector

GROWTH AND CHANGING STRUCTURE OF EMPLOYMENT

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Growth of Employment and Gross Domestic Product (GDP)
Fifty years of planned development have always aimed at expansion of the economy through increase in
national product and employment.
 During 1950 -2000, GDP of India grew positively and was higher than the employment growth.
 There was always fluctuation in the growth of GDP, but employment grew at the rate of not more than
2%.
 However, in the late 1990s, employment growth started declining and reached the level of growth that
India had in the early stages of planning.
 During these, years, the gap between the growth of GDP and employment was widening. This trend is
termed as ‘Jobless Growth’.
 Jobless Growth refers to a situation when the economy is able to produce more goods and Services
without a proportionate increase in employment opportunities.
 In other words, it is a situation when there is an overall acceleration in the growth rate of GDP in the
economy without corresponding expansion in employment opportunities.

Changing Structure of Employment

We know, India is an agrarian nation. A major section of our population lives in rural areas and is dependent on
agriculture as their main livelihood. The development strategies in many countries, including India, have
always aimed at reducing the proportion of people depending on agriculture.
Let us now understand the effect on different sections of workforce, due to growth pattern of employment and
GDP with the help of Table 7.4.

Changing Structure of Employment

India is an agrarian nation. A major section of our population lives in rural areas and is dependent on agriculture
as their main livelihood. The developmental strategies in many countries, including India have always aim at
reducing the proportion of people depending on agriculture.
Table : Trends in Employment (Sector-Wise)
Sector 1972 – 73 1983 1993-94 1999-2000 2011-12
Primary Sector 74.3 68.6 64 60.4 48.9
Secondary Sector 10.9 11.5 16 15.8 24.3
Tertiary Sector 14.8 23.8 20 23.8 26.8
Total 100.0 100.0 100.0 100.0 100.0

 There was decline in the workforce engaged in primary sector from about 74% in 1972-73 to about 48.9
percent in 2011-12.
 Secondary sector exhibited increase from around 11% in 1972 73 to around 24.3 in 2011-12.
 Tertiary sector showed increased from around 15% in 1972-73 to around 27% in 2011-12.
 These trends prove that structural change took place in India as there is shift in employment from primary
sector to secondary and tertiary sectors.

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Casualisation of Workforce
The process of moving from self-employment and regular salaried employment to casual wage work is known as
casualisation of workforce.
Table : Trends in Employment (Status – wise)
Sector 1972 – 73 1983 1993-94 1999-2000 2011-12
Self-employed 61.4 57.3 54.6 52.6 52.0
Regular salaried employees 15.4 13.8 13.6 14.6 18.0
Casual wage laborer 23.2 28.9 31.8 32.8 30.0
Total 100.0 100.0 100.0 100.0 100.0
 Self- Employment: Although, it continues to be the major employment provider, but its share declined
from 61.4 %in 1972 – 73 to 52 % in 2011-12.
 Regular Salaried Employees: There is a marginal decrease from 15.4 % in 1972 -73 to 18 % in 1999 -
2000.
 Casual Workers: Their share has increased from 23.2 per cent in 1972 -73 to 30 % in 1999 -2000.

INFORMALISATION OF INDIAN WORKFORCE

Since independence, the main objective of Indian planning is to raise the standard of living of people, by
providing job and job security. It has been stressed that industrialisation would bring surplus workers from
agriculture to industry with better standard of living.
 However, even after 55 years of planned development, three-fourth of Indian workforce depends on
agriculture as the major source of livelihood.
 Over the years, the quality of employment has also deteriorated. Even after working for more than 10 -
20 years, some workers do not get maternity benefit, provident fund, gratuity and pension.
 Employees in the private sectors get a lower salary as compared to employees doing the same work in
the public sector.
 The employment structure in India can be studied with respect to two kinds of sectors; (i) formal or
organised Sector; (ii) Informal or Unrecognised Sector.
Informalisation of Workforce refers to a situation whereby the proportion of workforce in the informal
sector to total workforce increases.

Formal or Organised Sector

All the public enterprises and private establishments which employ 10 or more hired workers are called
formal sector establishments.
 Workers who work in such establishments are known as formal sector workers.
 Formal workers enjoy social security benefits and earn more than those in the informal sector.
 The government protects them in various ways through its labour laws and they can form “Trade
Unions” to protect their interests.
 However, the organised sector provides work just 7 per cent of the total work force.

Informal or Unrecognised Sector

Informal sector includes all those private enterprises which hire less than 10 workers.
 Workers who work in such enterprises are known as informal sector workers. For example, farmers,
agricultural labourers, owners of small enterprises, etc.
 In India, over 90 per cent employment is found in the unorganised sector, viz, small farms, household
industries, shops and other self-employment units.
 In the formal sector, male workers account for 69 per cent of the workforce.
 Workers and enterprises in the informal sector do not get regular income. They do not have any
protection or regulation from the government. Such workers have the risk of being dismissed without
any compensation.
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  Workers of this sector live in slums and are squatters (persons who unlawfully occupy an uninhabited
building or unused land).
 Informal sector uses the outdated technology and do not maintain any accounts.

Distribution of Workforce in Formal and Informal Sectors

As the economy grows, more and more workers should become formal sector workers and the proportion of
workers engaged in the informal sector should decrease. However, the situation in India is very discouraging

Table : Distribution of Workforce in Formal anad Informal Sector, 2011-12

Category Number of workers (in Millions)
Male Female Total
Formal Sector 24 6 30
Informal Sector 306 137 443

Formal Sector Informal Sector

1. It includes all the public sector enterprise and 1. It includes all the private sector enterprises
private enterprises which employ 10 or more which employ less than 10 workers.
than 10 workers.
2. Employees are known as formal workers. 2. Employees are known as informal workers.
3. Workers are entitled to social security benefits 3. Workers are not entitled to social security
benefits
4. Workers can form trade union. 4. Workers can not form trade union.

Realising the Importance of Informal sector

Due to failure of formal sector in generating employment, India started paying attention to enterprises and
workers in the informal sector. With the efforts of International Labour Organisation (ILO), the Indian
government has initiated the modernisation of informal sector enterprises and provision of social security
measures to informal sector workers.

MEANING OF UNEMPLOYMENT
Unemployment problem is one of the most serious problems, which is normally found in each and every
country of the world, irrespective of its economic development.
Unemployment refers to a situation in which people are willing and able to work at the existing wage rate,
but do not get work. Unemployment is confined not only to unskilled workers, rather a sizable number of
skilled fail to get jobs for long periods.
.
Unemployment is temporary even in India
In India, people cannot remain completely unemployed for very long because of their desperate economic
condition. As a result, they are forced to accept unpleasant, dangerous economic condition. As a result, they are
forced to accept unpleasant, dangerous jobs in unclean or unhealthy surroundings.

Sources of Unemployment Data

There are three sources of data on unemployment:
1. Reports of Census of India: Population census collects information on the economic activity of people.
2. National Sample Survey organisation (NSSO): The NSSO collects data through sample surveys and
gives annual estimate of employment and unemployment.
3. Directorate general of Employment and training (DGET): DGET has been implementing the
Employment Market Information (EMI) scheme over the last 30 years. EMI provides information about
the structure of employment, occupational compositions and educational profile of employees.

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All the three sources of data give different estimates of unemployment. However, they provide us the attributes
of the unemployed and the variety of unemployment prevailing in our country.

TYPES OF UNEMPLOYMENT IN INDIA

Present unemployment problem in India is mostly structural in nature. Let us discuss some of the major types of
unemployment in our country.
Disguised unemployment (Hidden Unemployment)
Disguised unemployment refers to a state in which more people are engaged in work than are really needed.
 For example, if two workers are needed on a piece of land and five workers are engaged on the same job,
then three workers are disguised unemployed.
 It is the most predominant form of unemployment in the agricultural sector of developing countries like
India.
 In the late 1950s, about one-third of agriculture workers in India were disguisedly unemployed.
 The main problem of disguised unemployment is that apparently all seem to be employed, but marginal
productivity of the surplus labour is zero, i.e. contribution of extra workforce is zero.
Seasonal Unemployment
Unemployment that occurs at certain seasons of the year is known as seasonal unemployment.
 In India, seasonal unemployment is predominantly associated with agriculture.
 In agriculture, work is seasonal and there are no employment opportunities in the village for all months in
the year. So, when there is no work to do on farms, men go to urban areas and look for jobs. They come
back to their home villages as soon as the rainy season begins.
 The period of seasonal unemployment varies from state to state, depending upon the methods of farming,
the condition of soil, the type and number of crops grown, etc.

Open Unemployment
Open Unemployment refers to that phenomenon in which persons are able and willing to work at the
prevailing wage rate, but fail to get work. It is called open unemployment because such unemployment can be
seen and counted in terms of the number of unemployed people.
Open Unemployment is different from Disguised Unemployment. In case of open unemployment, workers
are totally idle. However, in case of disguised unemployment workers appear to be working and do not seem to
be idling away their time.

CAUSES OF UNEMPLOYMENT
The reason for existence of widespread unemployment in India is not due to any single factor. It is the
cumulative result of many causes. The important causes of the unemployment problem in India are:
1. Slow rate of Economic Growth: The actual growth rate always lies far below the rate targeted in the five
decades of planning. Employment opportunities created under the plans could not keep pace with the
additions to the labour force.
2. Population Explosion: The rapid rate of population growth has been another cause of increasing
unemployment in the country. It has not been possible to generate so many employment opportunities to
absorb the large growing labour force.
3. Underdeveloped Agriculture: Heavy pressure of population on land and the primitive methods of
agricultural operations are responsible for massive rural unemployment and underemployment in the
country.
4. Defective Educational System: The prevailing education system in India is full of defects as it fails to
make any provision for imparting technical and vocational education. A a result, educated people are unable
to meet requirements of the firm.
5. Slow Growth of Industry: Due to shortage of capital and lack of modern and advanced technology,
industrial sector could not gain its momentum and could not generate sufficient employment opportunities
in the country.
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6. Decline of Cottage and Small –Scale Industries: A number of traditional village and cottage industries
have declined over the years due to change in the demand preferences and emergence of more efficient
modern industries. As a result, a large number of people have become unemployed.
7. Faulty Planning: The plans could not stop the migration of the rural population into urban areas. The plans
were unable to encourage use of labour- intensive techniques of agricultural and industrial production. The
plans have failed to put due emphasis on employment generating programmes like development of dairies,
fisheries and poultry farming. Insufficient infrastructure facilities (power, transporation, communication,
roads, etc.) have greatly hampered the expansion of work opportunities.
8. Inadequate Employment planning: Low priority has been given to employment objective in the plans.
There has been complete absence of any legal provision to implement employment generating schemes.
9. Low Capital Formation: Low rate of capital formation has hampered the growth potential in the
agricultural and industrial sectors. Consequently, job-creation capabilities of both the sectors have been
affected adversely.

REMEDIAL MEASURES FOR UNEMPLOYMENT

The unemployment problem in India can be solved with the help of following measures:
1. Accelerating growth rate of GDP: The aggregate employment problem can be solved through the process
of accelerated growth. Growth rates of GDP between 8 per cent and 9 per cent are needed over the next ten
years, to achieve a significant improvement in the enjoyment situation.
2. Control of Population growth: The rapid growth rate of population should be slowed down, so that the
additional jobs created do not fall short of new entrants to the labour market. Therefore, it is necessary to
adopt an effective and meaningful population control policy, like planning programmes.
3. Development of agricultural sector: Acceleration of agricultural growth is important to increase labour
productivity and quality of employment for large numbers of the existing labour force. There is a need for
agricultural revolution through improved techniques extension of irrigation facilities, reform of land laws,
increase in public investment, etc.
4. Encouragement to small-scale enterprises: The small-scalesectors needs to be encouraged through
multiple initiatives like liberal finance, technical training, supply of raw material, infrastructural facilities
and marketing of their products.
5. Improvements in Infrastructure: The infrastructural facilities like health, education, irrigation, electricity,
roads, etc. are critical for overall development of the economy. Better infrastructural facilities enable
agriculture and industry sector to produce to their full capacity. This will generate more employment.
6. Special Employment Programs: Special employment programs, which aim to providing wage
employment or self-employment opportunities, should be implemented.
7. Improvement of Employment Exchanges: The employment exchanges spread all over the country are of
great assistance in directing the job seekers to the possible areas of employment. The functioning of such
employment exchanges should be improved.
8. Creation of Self-Employment Opportunities: Government should provide various facilities like financial
assistance, training of skills, supply of inputs, marketing of products, etc. to generate more self-employment
opportunities.
9. Reform of Educational System: The present system of educational system should be made more
vocational and work-oriented. Educational facilities should be more diversified and a sustained programme
of training is necessary, to develop skill among the educated unemployed through special training or
apprenticeship courses.
10. Manpower Planning: The future requirements of educated manpower should be forecasted and
accordingly, intake into different professional courses should be determined. As a result, excess manpower
in market of educated labour will be eliminated.

GOVERNMENT POLICIES AND EMPLOYMENT GENERATION

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Government has taken many initiatives to generate acceptable employment, ensuring at least minimal safety and
job satisfaction. Since independence, the Union and State Governments have played an important role in
generating employment or creating opportunities for employment generation. Their efforts can be broadly
categorised into two aspects;
 Government provides “Direct Employment” by employing people in various departments for
administrative purposes. It also runs industries, hotels and transport companies and hence provides
employment directly to workers.
 With increase in output of goods and services of government enterprises, private enterprises providing raw
material to government enterprises will also raise their output. As a result, the number of employment
opportunities in the economy will increase. This increase in employment is known as “Indirect
Employment” by the government.

Employment Generation Programmes

Government has also implemented a number of “Employment Generation Programmes”, like National Rural
Employment Guarantee Act-2005, prime Minister’s Rozgar Yojana, Swarna Jayanti Shahri Rozgar Yojana,
etc.
 Government aims to alleviate poverty through such employment generation programmes.
 All these programmes aim at providing employment, services in primary health, education, rural shelter, etc.
 These programmes also aim to assist people in buying income and employment generating assets,
developing community assets and construction of houses and sanitation.
You are advised to refer “ Poverty Alleviation Programmes in India” discussed in Chapter 4:
“Poverty”, to revise the Programmes and Policies, initiated by the government.
Conclusion
There has been a change in the structure of workforce in India:
 Service Sector – Emerging as a prospective employer: With the expansion of the service sector, newly
emerging jobs are found mostly in this sector.
 Technological Advancement: Due to advent of high technology, now efficient small-scale enterprises and
individual enterprises work along with MNCs.
 Outsourcing of work: Outsourcing involves contracting out an activity to an outside specialised agency
(sometimes situated even in other countries), which undertakes complete responsibility to handle it using its
own manpower. For example: many companies have started outsourcing sanitation and housekeeping
functions, which are earlier performed by their in-house staff.
 Work at Home: Due to changes in work methods, it has now become a common practice for many people
to work from their home. Internet has become an amazing mean for work at home opportunities.
 More Employment in Informal sector: The nature of employment has become more informal with only
limited availability of social security measures to the workers.
 Growth in GDP, but not in employment opportunities: In the last two decades, there has been rapid
growth in the gross domestic products(GDP), but without simultaneous increase in employment
opportunities. It has forced the government to take up initiatives in generating employment opportunities
particularly in the rural areas.

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