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Mrs. Parampreet Kaur Faculty of Economics, Pragyan Sthali School, Saharanpur

The document discusses employment trends in India including growth, informalization, and other issues. It notes that between 1950-2010, GDP growth in India was higher than employment growth, though employment grew around 2% annually. It also discusses shifts in employment by sector, with agriculture remaining the main source of jobs but declining as a proportion of total employment. Between 1972-2012, there was a rise in casual wage work and informalization of the workforce.

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Poonam Sharma
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66 views

Mrs. Parampreet Kaur Faculty of Economics, Pragyan Sthali School, Saharanpur

The document discusses employment trends in India including growth, informalization, and other issues. It notes that between 1950-2010, GDP growth in India was higher than employment growth, though employment grew around 2% annually. It also discusses shifts in employment by sector, with agriculture remaining the main source of jobs but declining as a proportion of total employment. Between 1972-2012, there was a rise in casual wage work and informalization of the workforce.

Uploaded by

Poonam Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 20

EMPLOYMENT : GROWTH, INFORMALISATION AND OTHER ISSUES

Mrs. Parampreet Kaur


Faculty of Economics,
Pragyan Sthali School, Saharanpur.
Statement:

What I object to, is the ‘craze’ for machinery,


not machinery as such. The craze is for what
they call labour-saving machinery. Men go on
‘saving labour’ till thousands are without work
and thrown on the open streets to die of
starvation... Mahatma Gandhi
INTRODUCTION:

1. Work
2. Factory Work
3. Why do people work?
WORKERS AND EMPLOYMENT

 All those who are engaged in economic activities,


in whatever capacity — high or low, are workers.
Even if some of them temporarily abstain from
work due to illness, injury or other physical
disability, bad weather, festivals, social or
religious functions, they are also workers.
 Those who are self-employed are also workers.
Contd.
 The nature of employment in India is multifaceted. Some get
employment throughout the year; some others get employed for
only a few months in a year. 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. During
2011-12, India had about a 473 million strong workforce. rural
workers constitute about three fourth of this 473 million. Men form
the majority of workforce in India. About 70 per cent of the workers
are men and the rest are women (men and women include child
labourers in respective sexes). child labourers in respective sexes).
Women workers account for one-third of the rural workforce
whereas in urban areas, they are just one-fifth of the workforce.
PARTICIPATION OF PEOPLE IN
EMPLOYMENT:
 Worker-population ratio is useful in knowing
the proportion of population that is actively
contributing to the production of goods and
services of a country.
 Meaning of the term ‘population’ :
Population is defined as the total number of
people who reside in a particular locality at a
particular point of time.
Contd.

TABLE 7.1
Worker-Population Ratio in India,
2011-2012
Sex Worker-Population Ratio

Total Rural Urban

Men 54.4 54.3 54.6


women 21.9 24.8 14.7
Total 38.6 39.9 35.5
SELF-EMPLOYED AND HIRED
WORKERS:
 Workers who own and operate an enterprise
to earn their livelihood are known as self
employed.
 The construction workers are known as casual
wage labourers .
 When a worker is engaged by someone or an
enterprise and paid his or her wages on a
regular basis, they are known as regular
salaried employees.
Look at Chart 7.1:
In Chart 7.2:
Contd.

 The nature of work in urban areas is different.


Obviously everyone can not run factories,
shops and offices of various types. Moreover
enterprises in urban areas require workers on
a regular basis.
EMPLOYMENT IN FIRMS FACTORIES
AND OFFICES
 Generally, we divide all economic activities into eight
different industrial divisions. They are:
(i) Agriculture
(ii) Mining and Quarrying
(iii) Manufacturing
(iv) Electricity, Gas and Water Supply
(v) Construction
(vi)Trade
(vii) Transport and Storage and
(viii) Services.
Contd.

For simplicity, all the working persons engaged in


these divisions can be clubbed into three
major sectors viz.,
(a) primary sector
which includes (i) ,
(b) secondary sector
which includes (ii), (iii), (iv) and (v) and
(c) service sector which includes divisions (vi), (vii)
and (viii).
Table 7.2

TABLE 7.2
Distribution of Workforce by Industry, 2011-2012

Industrial Place of Sex Total


category residence
Rural Urban Men women
Primary 64.1 6.7 43.6 62.8 48.9
Sector
Secondary 20.4 35.0 25.9 20.0 24.3
sector
Territory 15.5 58.3 30.5 17.2 26.8
Sector
Total 100 100 100 100 100
Explanation of the table:

 Primary sector is the main source of employment for


majority of workers in India. Secondary sector provides
employment to only about 24 per cent of workforce.
About 27 per cent of workers are in the service sector.
 Though both men and women workers are concentrated in
the primary sector, women workers’ concentration is very
high there. About 63 per cent of the female workforce is
employed in the primary sector whereas less than half of
males work in thatsector. Men get opportunities in both
secondary and service sectors.
GROWTH AND CHANGING STRUCTURE
OF EMPLOYMENT

 Here we will look at two developmental indicators —


growth of employment and GDP. Sixty years of
planned development have been aimed at expansion
of the economy through increase in national output
and employment.
 During the period 1950–2010, Gross Domestic
Product (GDP) of India grew positively and was
higher than the employment growth. However, there
was always fluctuation in the growth of GDP. During
this period, employment grew at the rate of not more
than 2 per cent.
CHART---7.3
TABLE:7.3
Contd.

Let us look at two indicators that we have seen in


the preceding sections — employment of people
in various industries and their status. We know
that India is an agrarian nation; a major section of
population lives in rural areas and is dependent on
agriculture as their main livelihood.
Developmental strategies in many countries,
including India, have aimed at reducing the
proportion of people depending on agriculture.
Contd.

last four decades (1972-2012), people have


moved from self employment and regular
salaried employment to casual wage work.
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 workforce. This
makes the workers highly vulnerable.

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