Employment and Unemployment

I. Worker II. Need to do workIII. Types of WorkersIV. Size of Workforce in IndiaV. Status Of Self Employed & Hired WorkersVI. Occupational Structure VII. Informalization of Indian WorkforceVIII. UnemploymentIX. Types of UnemploymentX. Government & Employment Generation

Content

A worker is an individual who is in some employment to earn a living.

Example – Plumber , Electrician ,etc

Worker

People work for the following reasons: To earn money for survival Employment provides feeling of self worth &

self esteem It helps in the development of the nation

Need to do Work

Self Employed: these are the people working in their own business or profession. They earn profit as a reward for their services.

Hired Workers: these are the people hired by others & are paid wages or salaries as a reward for their services.

Types of Workers

Casual Workers: these are like daily wagers, not on permanent rolls of the employer, & do not get social security benefits. Example - construction workers.

Regular Workers: these are hired on permanent basis & are entitled to social security benefits.

Types of Hired Workers

Around 40% population in India comprise the workforce

70% of the workforce comprise of male workers because men are able to earn higher incomes, so families discourage female members from taking up jobs.

70% of the workforce is found in rural areas & only 30% in urban areas because bulk of the jobs is in rural areas. It implies maximum people are employed in farming & allied activities.

Size of Workforce in India

For every 100 urban females, only about 14 are engaged in some economic activities & this is 30 for every 100 women in rural areas.

This is because, amongst most families in urban areas, job work for women is still considered forbidden.

Higher employment among rural women is because of their poverty.

42% workers are self employed & 58% are hired in urban areas.

56% workers are self employed & 44% are hired in rural areas. The reason is that in urban areas people look for skilled jobs in offices & factories while in rural areas, family farm are most attractive proposition of employment.

51% of the male workers are self employed & 49% are hired

Status Of Self Employed & Hired Workers

55% of the female workers are self employed & 45% are hired.

Owing to family & social constraints, mobility of women workers in search of job is less compared to that of men workers.

Primary sector The primary sector of the economy is the

sector of an economy making direct use of natural resources. This includes agriculture, forestry, fishing and mining.

It includes agriculture & allied activities, mining & quarrying.

Occupational Structure

Secondary sector The secondary sector of the economy

includes those economic sectors that produce a finished, usable product: production and construction.

It includes manufacturing & construction.

Tertiary sector The service sector consists activities where

people offer their knowledge and time to improve productivity, performance, potential, and sustainability,.

The basic characteristic of this sector is the production of services instead of end products.

It includes trade, transport, storage & services.

Distribution by Industry: ◦ 60% in primary◦ 17% in secondary ◦ 23% in tertiary sector.

Distribution by Area:◦ Urban areas: Primary 10%, Secondary 31% &

tertiary 59% ◦ Rural areas: Primary 77%, Secondary 11% &

tertiary 12%

Distribution by Gender:◦ Male workers: Primary 54%, secondary 18% &

tertiary 28% ◦ Female workers: Primary 75%, secondary 12% &

tertiary 13%

Casualization of Workforce It refers to a situation when the percentage

of casually hired workers in the total workforce tends to rise over time.

It is a process of moving from self employment & regular salaried employment to casual wage works.

In India, casualization of workforce has been increasing

Informalization of Indian Workforce

Formal Sector or Organized Sector All the public sector units & those private sector units which employ more than 10 hired workers or more are called formal sector establishments.

Informal Sector or Unorganized Sector All the other enterprises & workers working in those enterprises form the informal sector. It includes farmers, agricultural laborers, and owners of small enterprises & people working in them, self employed who does not have any hired workers & non farm casual wage laborers.

Formal And Informal Sector

Formal Sector Informal Sector

1. It includes all the public & private sector establishments employing 10 or more hired workers.

2. They enjoy social security benefits

3. They earn regular & more income

4. They have govt. protection & security of job

5. Modern technology is used & proper accounts are maintained

1. It includes those private enterprises employing less than 10 hired workers.

2. They do not have any such facilities

3. They have irregular & less income

4. They do not have govt. protection as workers can be dismissed without any compensation.

5. The technology used is outdated & there is no proper maintenance of accounts.

It refers to a situation where people who are able & willing to work do not get work to earn their means of living.

The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.

During periods of recession, an economy usually experiences a relatively high unemployment rate.

Unemployment

Open Unemployment: it refers to a situation wherein worker is willing & able to work, but fails to get any productive job.

Structural Unemployment: it occurs due to the structural changes in the economy. It includes ◦ Changes in Technology ◦ Changes in the pattern of Demand

Types of Unemployment

Under Employment: it is that situation in which a worker gets work for less time than the time he can work. It is of two types:

Visible Under Employment: in this case, people get work for less than the normal hours of working.

Invisible under employment: in this case people work full time but their income is very low or they have to do those jobs where they cannot make the full use of their abilities.

Frictional Unemployment: it occurs due to imperfections in the mobility of labor across different occupations.

Seasonal Unemployment: it occurs in case of those occupations which are seasonal in nature. In off season there is not much demand for labor. For Example - agriculture, ice cream factories, woolen garments etc.

Disguised unemployment: in this type, more people are engaged in the work than the people required. The excess of labor which do not add to productivity are called disguised unemployed.

Efforts done by the govt. in generating employment can be classified into two categories as

Direct Efforts: in this, govt. employs people in various departments for administrative purposes. It also runs industries, hotels, transport, companies, etc. to provide employment directly to the people.

Indirect Efforts: when output of goods & services from the govt. enterprises increase, then the output of private sector who supplies raw material to the govt. sector would also increase & hence increasing the demand for labor. This is the indirect effort of generating employment by the govt.

Government & Employment Generation

Govt. has also started many poverty alleviation & employment generation programs. Some of these are:

NREGA Food for Work Program Prime Minister’s Rozgar Yajana Rural Employment Generation Program

Made by – Nishkam Govind Garg

Class – XI BRoll Number- 7