Chapter -7, Employment, Indian Economics
CHAPTER 7th EMPLOYMENT
Que:-Define Employment?
EMPLOYMENT is an activity from
which a person earns means of livelihood.
Que:- Define workers
and who are included in workers.?
A WORKER is an individual who
is involved in some economic activity to earn a living. A worker contributes to
GDP by rendering his productive activities.
WORKERS include the
following;
•
It includes self-employed people like shopkeepers, barbers, etc
•
It includes those people who remain temporarily absent from work due to illness
or any other reason.
•
It includes those people who help the main workers. It means all those who are
engaged in some economic activity are called WORKER.
Que:- Define a short note on the nature
of Employment?
MULTIFACETED NATURE
OF EMPLOYMENT
1)
some get employment throughout the year, while others get
employed for few months i.e seasonal workers.
2)
Many workers do not get fair wages for their work.
3)
While estimating the number of workers, all those who are
engaged in some economic activities are included as employed.
NUMBER OF WORKERS
1) During 2017-18, total number of workers in India was 471 million people. Out of them,
around 3/4th were rural workers.
2)
Around 77% of total workers are male and others are
female.
3)
Rural women participate in economic activities as compare
to urban women.
LABOUR FORCE
Que:- What do u mean
by Labour force ? and how Labour force is calculated ?
All
persons who are working and though not working, are seeking and are available
for work are termed as Labour force.
LABOUR FORCE = persons working +
persons seeking/available for work. Labour force is the total of employed and
unemployed people.
TO
calculate the Labour force, subtract the following from total population;
(a) unfit people like old or handicapped
people.
(b)
people who are not willing to work.
(c) people who are not available for work.
Note
:- children below 15 years and old people above 60 years are excluded from
Labour force.
LABOUR FORCE PARTICIPATION
RATE
Que:-What do u mean
by labour force participation Ratio ?
Ans:- The ratio of Labour
force in total population is called Labour force participation rate (LFPR)
In
2017-18,
(a)
Around 34.7 % of population belonged to Labour force.
(b) Out of total labour force, 35% in rural
areas and 33.9% in urban areas.
(c)
LFPR was 52.1% for males and 16.5% for females.
WORK FORCE
Que:-What do u mean
by work force and how it is calculated ?
Ans:- The number of
persons who are actually employed at a particular time are known as Work force.
It includes all those people who are actually engaged in some economic
activities.
Work force = Labour force -
unemployed people.
It
means unemployed people = Labour
force - work force.
PARTICIPATION OF PEOPLE IN EMPLOYMENT
Que:-What do u mean
by worker population Ratio and what does it indicate ?
Ans:-WORKER-POPULATION
RATIO
is used to indicate the employment situation of a country.
It
is calculated by dividing the total number of workers in India by total
population and multiply by 100.
•
It is very useful in determining the portion of population that actively contributes in the production of goods and services.
•
Higher ratio indicates higher population is involved in economic activities
where as lower/medium ratio indicates less population are involved in
economic
activities.
• This ratío indicates the status of workers
in society and their working conditions and by
this we can determine quality of employment in a country.
IMPORTANT FACTS AND
DATA ABOUT WORKERS IN INDIA -
· For every 100
persons, 34.7% are workers in India.
· In urban areas,
worker population ratio is 33.9% and in rural areas this ratio is 35%.
· Rural people have
limited resources and participate more in employment market, whereas urban
people mainly look for appropriate job which suits their qualification.
· Females 21.9% and
males 54.4% are found to be working.
· Ratio of women workers in rural areas is 17.5% than women workers in urban areas i.e 14.2%. this is all due to poor economic conditions in rural Area
Que:-What do you mean
by employment .discuss the two main form of employment ?
Ans:- EMPLOYMENT
EMPLOYMENT is an
activity which enables a person to earn means of living.
EMPLOYMENT
SELF-EMPLOYMENT 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-employment.
Around 52.2% work-force in INDIA are
self-employed. self-employment is a major source of livelihood for both men and
women. In this, a person uses his own land, Labour, capital and enterprise to
make a living. For example shop-keepers, traders, businessmen, etc.
WAGE – EMPLOYMENT
An arrangement in which a worker sells his
labour and earns wages in return, is known as wage - employment. Under this,
worker is known as employee and buyer of worker is known as employer.
Workers do not have
any other resource except their own labour. They offer their Labour services to
others and in return get wages.
If a doctor is
running his own clinic, he is self employed where as if that doctor will work
in some hospital, then, it will be wage employment.
WAGE
EMPLOYMENT IS OF TWO TYPES;
(A) REGULAR WORKERS (B) CASUAL WORKERS
Que:-
State the various type of wage employment and explain its types
Ans:-Wage employment is of
two types :-
(A) REGULAR WORKERS (B) CASUAL WORKERS
1)
REGULAR WORKERS - when a worker is
engaged by someone or by an enterprise and is paid wages on regular basis, then
such worker is called regular worker or regular salaried employee. workers are
hired on permanent basis and also get social security benefits like pension, provident
funds, etc
Regular workers
account for just 22.8% of total workforce in India. For example teachers,
professors, engineers working in company, etc
2)
CASUAL WORKERS - Workers who are
casually employed and in return get remuneration for the work done, are called
casual workers. casual workers are not hired on permanent basis. It means they
do not have regular income, regulation from the government, job security and
social security benefits.
casual workers
account for 25% of workforce in India.
DISTRIBUTION OF
EMPLOYMENT BY GENDER
Que:- Briefly discuss
the distribution of Employment on the basis of gender
Ans:- The
distribution of employment on the basis of gender are as follows :-
•
Self employment is a major source of livelihood for both, men (52%) and for women (52%).
•
Casual workers account for second major source for both, men (24%) and women (27%).
•
In case of regular salaried workers, men are found in greater proportion (24%)
where as women found only (21%). Reason behind this is regular employment
require skills and high level of Literacy.
DISTRIBUTION
OF EMPLOYMENT BY REGION •
Que:- Briefly discuss
the distribution of Employment on the basis of Region ?
Ans:- The distribution of Employment on the basis of Region
are as follows :-
SELF-EMPLOYMENT - It is a major
source of livelihood in both, Rural areas (58%) and in
urban areas (38%). in rural areas, self employed workers are more because
majority of rural people are engaged in farming.
• CASUAL-WORKERS - In case of rural
areas, casual workers account for second major
source of employment with 29% of workforce and in urban areas, it is only 15%.
• REGULAR SALARIED
EMPLOYEES
- In urban areas, it is the second major source with 47% of workforce. Urban
people have variety of opportunities due to their education. Only 13% of rural
people are engaged in regular salaries employment due to lack of education and
skills.
DISTRIBUTION OF
EMPLOYMENT IN DIFFERENT SECTORS
Que:- Briefly discuss
the distribution of Employment on the basis of different sector ?
Ans:- The
distribution of Employment on the basis of different sector are as follows :-
we
divide all economic activities into following 8 divisions
a.
agriculture
b.
mining
and quarrying
c.
manufacturing
d.
electricity,
gas and water supply
e.
construction
f.
trade
g.
transport
and storage
h.
services.
For simplicity, all the workers working are
divided into three sectors
(a) Primary Sector - it includes agriculture and mining and quarrying.
(b)
Secondary sector - it includes
manufacturing, electricity, gas and water supply and construction.
(c) Tertiary sector - it includes trade, transport and storage and services.
So,
data is
1.) primary sector is the main source of
employment 44.6% for majority of workers in India.
2.) secondary sector provides employment to
only 24.4% of workforce.
3.) 31% of workers are engaged in service
sector.
DISTRIBUTION OF
RURAL-URBAN EMPLOYMENT IN DIFFERENT SECTORS
EMPLOYMENT
IN RURAL AREAS
i.
59.8% of workers in rural areas are engaged in primary
sector
ii.
20.4% of workers in rural areas are working in secondary
sector.
iii.
19.8% of workers in rural areas are working in tertiary
sector.
EMPLOYMENT
IN URBAN AREAS
i.
6.6% of workers in urban areas are engaged in primary
sector.
ii.
34.3% of workers in urban areas are engaged in secondary
sector.
iii.
59.1% of workers in urban areas are engaged in tertiary
sector.
DISTRIBUTION OF
MALE-FEMALE EMPLOYMENT IN DIFFERENT SECTORS
MALE EMPLOYMENT
•
40.7% of male population is engaged in primary sector.
• 26.5% of male population is engaged in
secondary sector.
•
32.8% of male population is engaged in tertiary sector.
FEMALE EMPLOYMENT
•
57.1% of female population is engaged in primary sector. Quite high than male population. It happens because men get
opportunities in both secondary as well as tertiary sectors.
•
17.7% only of female population is engaged in secondary sector.
• 25.2% of female population engaged in
tertiary sector.
Question
:- Write a short note on jobless growth. ( v. v. important)
Ans. During 1950 - 2010,
GDP of India grew positively and rate of GDP was higher than the rate of
employment growth. There was great rise in GDP but employment rises at a rate
less than 2% only. During these years, the gap between growth of GDP and growth
of employment was widening and this 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.
Jobless growth is actually a situation when there is an acceleration in he growth rate of GDP without any increase in employment. Indian economy is achieving GDP more through technology than from labour. It leads to jobless growth.
IMPORTANT NOTE:-
In
1972-73, 74.3% of workforce was engaged in primary sector and now in 2017-18,
only 44.6% of workforce is engaged in primary sector. It shows substantial
shift from farm work to non-farm work. Secondary sector workforce increased
from 10.9% to 24.4% and tertiary sector workforce increased from 14.8% to 31%
during 1972-73 to 2017-18.
CASUALISATION
OF WORKFORCE
The
process of moving from self-employment and regular salaried employment to
casual wage work is known as casualisation of workforce.
FROM 1972-1973 TO 2017-18
•
Self Employment :-Share of self employed workers declined from 61.4% to
52.2%
•
Regular Salaried :-There is an increased in share from 15.4% to 22.8%
• Casual Workers :- Share of casual workers has increased from 23.2% in 1972-73 to 25% in 2017-18.
INFORMALISATION
OF WORKFORCE
It
refers to a situation whereby the proportion of workforce in the informal
sectors increases. The employment structure in India can be studied with two
sectors;
(A) FORMAL SECTOR
(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 called formal
sector workers.
Formal
sector workers enjoy social security benefits and earn more than informal
sector workers.
The
government protects them in various ways through Labour laws and these workers
can form trade union also.
This
sector provides work to only 6% of total workforce of India.
(B) INFORMAL SECTOR
(UNORGANISED 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, etc.
It also includes those casual wage workers who
work for more than one employer in
India, more than 94% employment is found in informal sector like small
farms, household industries, shops and other self-employment units.
Workers
in the informal sector do not get regular income and they do not have any
social security protection.
RECENTLY
IN INDIA, workers are switching more towards informal sector and this is called
informalisation and it is not a positive sign of economy.
IMPORTANT
NOTE -
•
Out of total 473 million workers in India. 30 million workers are in formal
sector and 443 million workers are in the informal sector. It means only 6 - 7%
of workforce are engaged in formal sector and rest 94% in the informal sector.
· In the formal sector,
out of 30 million, 24 million are male and rest female.
· Where as in the
informal sector, out of 443 million, 310 million are male and 133 million are
female.
UNEMPLOYMENT
AND SOURCES OF DATA
Unemployment
refers to a situation in which people are willing and able to work at the
existing wage rate but do not get work.
With
prolonged employment, workers may also lose their skills and work habits and
become unemployable.
SOURCES OF UNEMPLOYMENT DATA
1.) REPORT OF CENSUS
OF INDIA
population census collects information on the economic activity of people.
2.) National sample survey organization NSSO:- National sample survey organisation 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 scheme over Last 30 years. It
provides information about the structure of employment, occupational
compositions and educational profiles of people.
All
the above sources just provide an estimate of data of employment because
variety of employment prevails in our country.
TYPES OF UNEMPLOYMENT IN INDIA
2.) DISGUISED UNEMPLOYMENT (HIDDEN UNEMPLOYMENT) (V. IMP) – It 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 land and five workers are engaged on the same job, then
extra three workers are disguised unemployed
· It is the most predominant form of
unemployment in the agricultural sector in India.
· In1950, AROUND 1/3 of
agricultural workers were disguisedly unemployed.
· The main problem of this is all workers seem
to be employed but marginal productivity of extra labour is zero means
contribution of extra workers is zero
2.) SEASONAL UNEMPLOYMENT (V. IMP.) - Unemployment that
occurs at certain seasons of the year is known as seasonal unemployment in
India, seasonal unemployment is predominant form of unemployment is
agriculture.
· In agriculture work
is seasonal and there are no employment opportunities in the village.
· when there is no work
to do on farms, men go to urban areas and look for jobs and during rainy
seasons they come back to their village.
· Seasonal unemployment
varies from state to state depending upon methods of farming.
3.) OPEN UNEMPLOYMENT
(V. IMP.) –
Open
unemployment refers to that economic phenomena in which persons are able and
willing to work at the prevailing wage rate but fails to get work.
· It is called open
unemployment because such unemployment can be seen and counted in terms of
number of unemployed people.
· In open unemployment
workers are totally idle where as in case of disguised unemployment, workers
appear to be working and do not seem to be idle.
4.) INDUSTRIAL
UNEMPLOYMENT
- It refers to the unemployment among the illiterates who wish to work in
industrial establishments. With the increase in size of urban population and
the migration of rural people to urban areas, the industrial unemployment is
becoming acute( very serious). The slow growth of industries is unable to
generate sufficient employment.
5.) EDUCATED UNEMPLOYMENT - It refers to the
unemployment among the educated people in the country. The rapid expansion of
general education has increased the educated people in the country. However,
due to slow growth of technical and vocational education facilities, a huge
number of manpower is diverted towards general education. It has led to
peculiar (unusual) educated unemployment problem in India.
6.) FRICTIONAL
UNEMPLOYMENT -
It refers to temporary unemployment which exists during the period wherein
workers leave one job and join some other. It arises due to labour market
imperfections such as lack of market information about the availability of
jobs. Introduction of new machines or breakdown of industrial plants also leads
to frictional unemployment.
7.) STRUCTURAL
UNEMPLOYMENT
- It refers to the unemployment in which people remain unemployed due to
mismatch between unemployed workers and demand for specific type of workers.
People are unemployed due to lack of skills and training. Suppose workers do
not have knowledge of computers, so they remain unemployed till they acquire
the knowledge of computers.
8.) CYCLICAL UNEMPLOYMENT - It is associated
with the various phases of business cycle like boom, depression, recession,
recovery, etc During the period of Boom, the level of economic activity,
income, output and employment arise.
Whereas during depression, income and output fall and it gives rise to widespread unemployment.
CAUSES OF UNEMPLOYMENT (VERY VERY IMP.)
1.) Slow rate of
economic growth -
The actual growth rate always lies below the targeted growth rate. Employment
opportunities created under the plans could not make progress with increasing
labour force (person available for jobs).
2.) Population explosion - The rapid rate of population growth has been another cause of rising unemployment. It has not been possible to generate so many employment opportunities to absorb large growing Labour force.
3.) Underdeveloped
agriculture
- Heavy pressure of population on land and the traditional methods of
agriculture are responsible for massive rural unemployment.
4.) Defective educational system - the prevailing education system in India is full of defects as it fails to make any provision for providing technical and education. As a result, everyone is getting only general education and are unemployed even after education.
5.) Slow growth of industry - due to
shortage of capital and lack of modern technology, industrial sector could not
generate sufficient employment opportunities in the country.
6.) Decline of Small Scale and Cottage
Industries
- A number of traditional cottage industries have declined over the years due
to change in demand preference and emergence of modern industries. As a result,
no. of people are unemployed.
7.) Faulty planning - The government
plans could not stop the migration of rural people to urban areas, plans were
unable to encourage labour intensive techniques and plans have failed to
generate alternate employment programmes like fisheries, dairies, etc. all
these failed planning lead to
Steps taken to tackle the problem of Unemployment in India
1.) Accelerate growth rate of GDP - The
aggregate employment problem can be solved through the process of accelerated
growth. Growth rate of GDP between 8 to 9% are needed over next ten years to
achieve significant improvement in employment situation.
2.) Population control – The rapid growth
rate of population should be slowed down, so that additional jobs created do
not fall short for new comers in Labour market. It is necessary to adopt an
effective population control policy like family planning programmes.
3.) Agriculture
development
- Increase in agricultural growth is important to increase Labour productivity
and quality of employment for existing Labour force. There is a need for
agricultural revolution through improved techniques irrigation facilities and land
reforms.
4.) Encourage
small-scale industries - The small scale sector needs to be encouraged through
multiple initiatives like liberal finance, technical training and supply of raw
material as well as marketing of their products.
5.) Improvement in infrastructure - The infrastructural facilities like health education, irrigation, electricity, roads, etc are crucial for overall development of an economy. Better infrastructure enable agriculture and industries to product to their full capacity and generate more employment.
6.) Special employment programs - Programs which aim at providing self and wage employment should be implemented.
7.) Improvement of
employment exchanges
- the employment exchanges spreads all over the country are of great assistance
in directing the job seekers to the possible areas of employment. Their
functioning should be improved.
8.) 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.) Educational
system -
The present system of education should be made more vocational, technical and
work oriented. Educational facilities should be more diversified and training
programme is necessary to develop skills of the educated unemployed people.
10.) Manpower
planning -
The future requirements of educated manpower should be forecasted and thus
intake into various professional courses should be determined. As a result, excess
manpower in market will be eliminated.
GOVERNMENT
POLICIES AND EMPLOYMENT GENERATION
GOVERNMENT
generates employment in two ways;
1) DIRECT EMPLOYMENT - Govt. provides
direct employment by employing people in various departments For administrative
purposes. It also runs industries, hotels and transport companies and thus
provides employment directly to workers.
For example; Jobs given to workers during dam construction.
2.) INDIRECT EMPLOYMENT - Government enterprises purchase raw-material from private enterprises for production of goods and services. It means if there is rise in output of govt. industries, private sector will also grow and thus no. of employment opportunities in the economy will increase. This is called indirect employment.
EMPLOYMENT
GENERATION PROGRAMMES
Government
has also implemented a number of employment generation programmes like mahatma
Gandhi 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 to provide employment.
Note; poverty alleviation programmes (PAPs)
and employment generation programmes are exactly same. Read the same from
chapter 4th poverty.
CONCLUSIONS;
Ø With the expansion of service sector, newly
emerging jobs are found mostly in this sector
Ø Due to high
technology, small scale industries are now work along with MNCS.
Ø Many companies have
started outsourcing various functions, which were earlier performed by their
own staff.
Ø It has now become a
common practice for many people to work from their home.
Ø More employment generated in informal sector
but with limited social security benefits.
Ø There is growth in
GDP but without any substantial rise in employment opportunize i.e. jobless growth.
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