EMPLOYMENT: GROWTH,

INFORMALISATION AND OTHER

ISSUES
CHAPTER 7
 INTRODUCTION 1
• People do a variety of work. Some work on
farms, in factories, banks, shops and many
other workplaces;
• A few others work at home. It includes not
only traditional work like weaving, lace making
or variety of handicrafts but also modern jobs
like programming work in the IT industry.
 WHY DO PEOPLE WORK? 2

• People work for ‘earning’ a living.

• Being employed in work gives us a sense of
self-worth and enables us to relate ourselves
meaningfully with others.
• Every working person is actively contributing
to national income and hence, the
development of the country
 WHY DO PEOPLE WORK? 3
• We do not work only for ourselves; we also
have a sense of accomplishment when we
work to meet the requirements of those who
are dependent on us.
• Mahatma Gandhi insisted upon education
and training through a variety of works
including craft.
 contd
• Studying about 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 us to analyze the contribution made by
different sectors towards national income.
• It also helps us to address many social issues
such as exploitation of marginalized sections of
the society, child labour etc
 WORKERS & EMPLOYMENT 4
• Employment is a state of being employed
It is a state where an individual is getting paid
• A person may work in the fields, or factories
or in the tertiary sector he can be considered
a worker if he is paid for his services.
• By being employed or by being a worker a
person contributes to the value of goods and
services produced in our country.
 TYPES OF ACTIVITIES 5
• Activities that contribute to GNP are called
ECONOMIC ACTIVITIES
• Activities that do not contribute to income are
called NON ECONOMIC ACTIVITIES.
• People engaged in economic activites are
working in different capacities as workers.
Some are working in lower positions, some at
medium level and others at lower levels.
 NATURE OF EMPLOYMENT 6
• Some get employment throughout the year
and some get just for a few months.
• Some get fair wages and some don’t.
• Majority of the workers are from the rural
areas .
• Men form majority of the workforce in India.
• Women account for only 1/3 rd of the rural
work force and 1/5 th of the urban workforce
 PARTICIPATION OF PEOPLE IN
EMPLOYMENT 7
• Population refers to the total number of people
who reside in a particular area or locality.
• The worker population ratio is used to
understand the employment situation in our
country.
• To calculate the worker population ratio we
divide the working population by the total
population and multiply it with 100. or
• Working population/total population X 100
 PARTICIPATION OF PEOPLE IN
EMPLOYMENT 8
• The people in rural areas are not highly educated
so there are fewer employment opportunities in
the rural areas.
• The people in the urban areas have ample
opportunities of employment
• Compared to females there are many male
workers both in rural as well as in the urban
areas.
• A lot of times work done by women is not
recognized they may also be paid less than the
men folk
SELF EMPLOYED AND HIRED WORKERS
9
• Workers can either be self employees self
employed, or casual wage labourers.
• For eg:- a cement shop owner is self
employed , the construction worker is a casual
wage worker and a civil engineer is a regular
salaried person.
• In India about 52% are self employed, 30%
are casual wage earners, 18% are regular
salaried.
 DISTRIBUTION OF WORKFORCE IN
URBAN AND RURAL AREAS 10
• In the urban areas most people work in the
industries or the tertiary sector so they are
either self employed or regular salaried.
• In the rural areas most work is agrarian
therefore many are casual wage earners.
 SECTORS OF THE ECONOMY 11
• All economic activities are broadly into 8
categories
• They are Agriculture, Mining, Quarrying,
Manufacturing, Electricity Gas & water supply,
Construction, Trade, Transport & storage, and
Services.
• According to census 2011 48.9% of population is
engaged in primary sector, 24.3% of population is
engaged in secondary sector and 26.8 % of the
population is engaged in the tertiary sector.
 GROWTH AND CHANGING
STRUCTURE OF EMPLOYMENT 12
• During the period 1950–2010, Gross Domestic Product
(GDP) of India grew positively and was higher than the
employment growth.
• In the late 1990s employment growth started declining
almost similar to the initial years of planning.
• It is seen that income has increased over the years and
employment has declined, Scholars call this as JOBLESS
GROWTH.
• It is observed that the dependence on primary sector is
declining and there is a gradual shift in the
employment towards the secondary and the tertiary
sector.
 GROWTH AND CHANGING
STRUCTURE OF EMPLOYMENT13
• The distribution of work force for last four
decades (1972-2012), people have moved from
self employment and regular salaried
employment to casual wage work.(recession)
• Yet self-employment continues to be the major
employment provider.
• Scholars call the process of moving from self-
employment and regular salaried employment to
casual wage work as casualisation of work force.
GROWTH AND CHANGING STRUCTURE
OF EMPLOYMENT14
• 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.
 INFORMALISATION OF INDIAN
WORKFORCE 15
• FORMAL SECTOR:- It is a well defined or
organised sector where the working hours are
fixed, have regular income and for which
income taxes are paid is called a formal sector.
• It can also be defined as a sector where there
are 10 or more hired workers and are
governed by the rules and regulations of the
govt.
 INFORMALISATION OF THE INDIAN
WORK FORCE 16
• Informal sector:- This sector is also called as
the un-organised sector. Here the workers are
not covered by social security provisions of
the Govt. They include farmers, agricultural
workers, vendors, construction workers, small
traders, domestic workers etc.
 DIFFERENCE BETWEEN FORMAL &
INFORMAL EMPLOYMENT 17
FORMAL
• Organised sector
• Written agreements
• Registered units
• Regular salaried workers
• Fixed hours of work
• There is job security
• Social security available
• No migration
• Govt and semi Govt employees
INFORMAL
• Unorganised sector
• Oral agreements
• Unregistered units
• Self employed and casual
workers.
• Long hours of work
• No job security
• No social security
• High migration
• Agricultural labourers, push cart
vendors, construction workers
domestic workers etc.
 UNEMPLOYMENT 18
• It is a situation where an able bodied worker is
not provided with work at the ruling wage
rate.
SOURCES OF DATA ON UNEMPLOYMENT:-
Census
NSSO
Directorate General of Employment And Training
 TYPES OF UNEMPLOYMENT 19
• Disguised unemployment
• Seasonal Unemployment
• Open Unemployment
• Under Employment
 EMPLOYMENT GENERATION
PROGRAMMES OF THE GOVT. 20
• The Government has set up a lot of programes on
poverty alleviation and employment generation
like
• National Rural Employment guarentee Programe
• Swarnajayanthi gram rozgar yojna
• Swarna jayanthi Shahri Rozgar Yojna
• Apart from these the Govt also has created a lot
of wage employment programmes and has also
provided services like health, education, drinking
water, sanitation etc.
 CONCLUSION 21
• There has been a drastic change in the structure
of workforce in India
• New jobs have emerged especially in the service
sector.
• MNCs have come and with them outsourcing is
becoming a common practice.
• The traditional concept of working from office is
given way for working from home.
• There is a lot of informalisation of employment
and less provision for social security.