Employment : Growth, Informalisation And Other Issues Class 11

Explore employment trends, informalisation, and social issues in India's economy. Understand participation, unemployment, and government initiatives for job creation.

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Notes - Employment : Growth, Informalisation And Other Issues | Class 11 Indian Economic Development | Economics

Comprehensive Class 11 Notes on Employment: Growth, Informalisation, and Other Issues

Understanding the employment landscape in any country is crucial for grasping its economic health and social dynamics. For Class 11 students, this article offers a comprehensive exploration of employment, highlighting its growth, the trend towards informalisation, and related issues.

A broad overview depicting various sectors of employment such as agriculture, manufacturing, and services, with workers engaged in these activities in an Indian rural and urban setting.

Introduction to Employment

Definition of Employment and Worker

Employment refers to the engagement in activities that contribute to the gross national product (GNP) of a country. Workers include all individuals participating in economic activities, regardless of whether they are paid or self-employed.

Importance of Studying Employment

Studying employment patterns helps us understand the quality of employment, the contribution of different sectors to national income, and the social issues related to workforce dynamics.

Basic Concepts Related to Employment

Economic Activity and Its Contributors

Economic activities are those that produce goods and services of value in a country. They include a wide range of sectors, from agriculture to services.

The Workforce and GDP Interrelation

The total money value of all final goods and services produced within a country in a year is its gross domestic product (GDP). The workforce's contribution is crucial in generating this GDP.

Participation in Economic Activities

Worker-Population Ratio

The worker-population ratio (WPR) indicates the proportion of a country's population engaged in economic activities. A higher ratio signifies greater economic engagement.

Employment Participation by Gender and Area

Employment rates vary significantly between men and women and between rural and urban areas. Rural areas often exhibit higher participation due to limited educational and employment opportunities.

Types of Employment

Self-Employed and Hired Workers

Workers can be self-employed, regular salaried employees, or casual wage labourers. The self-employed, such as small business owners, form a significant portion of the Indian workforce.

Primary, Secondary, and Tertiary Sectors

pie title Employment by Sectors "Primary": 45 "Secondary": 24 "Tertiary": 31

Employment is divided into three major sectors:

  • Primary Sector: Includes agriculture, mining, and quarrying.
  • Secondary Sector: Includes manufacturing, construction, and utilities.
  • Tertiary Sector: Includes services like trade, transport, and finance.

Employment Growth Trends

Employment vs. GDP Growth

India has experienced fluctuating GDP growth rates, often outpacing employment growth, leading to a phenomenon known as jobless growth.

Jobless Growth and its Implications

Jobless growth indicates that while the country's economy is growing, it is not generating corresponding employment opportunities.

Informalisation of Workforce

Definition and Impact of Informalisation

Informalisation refers to the increase in employment in the informal sector, which often lacks job security and social benefits.

Characteristics of Informal Sector Jobs

Informal sector jobs are typically characterised by low wages, lack of social security, and unstable employment conditions.

Government’s Role in Employment Generation

Direct Employment Initiatives

The government employs individuals in various sectors, including administration, public enterprises, and state-run industries.

Indirect Employment Mechanisms

Government policies and initiatives indirectly create jobs through infrastructure projects and schemes aimed at boosting the private sector.

Key Government Schemes for Employment

Significant schemes include the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which assures 100 days of employment annually to rural households.

Unemployment in India

Types of Unemployment (Open, Disguised, Seasonal)

  • Open Unemployment: When individuals actively seek but cannot find work.
  • Disguised Unemployment: More workers are employed than necessary, often observed in agriculture.
  • Seasonal Unemployment: Jobs available only during certain seasons, common in farming.

Data Sources and Measurement of Unemployment

Unemployment data in India is sourced from the census, National Statistical Office (NSO), and other government surveys.

Changes in Employment Structure

Sector-wise Distribution of Employment

pie title Workforce Distribution by Sector (2017-2018) "Primary Sector (Agriculture)": 44.6 "Secondary Sector (Industry)": 24.4 "Tertiary Sector (Services)": 31

Over the years, there has been a significant shift from agricultural (primary) employment to industrial (secondary) and service (tertiary) sectors.

Status-wise Distribution of Employment

pie title Employment Status in India (2017-2018) "Self-employed": 52.2 "Regular Salaried Employees": 22.8 "Casual Wage Labourers": 25.0

Social Issues and Employment

Gender Disparities in Employment

Women, especially in rural areas, have lower participation rates in the workforce due to social norms and economic conditions.

Child Labour and Marginalised Workforce

Child labour and exploitation of marginalised communities remain critical issues within the employment sector.

Impact of Technology and Outsourcing

Technological Advances in Employment

Technological advancements have transformed traditional employment patterns, enabling remote work and automation.

Outsourcing and its Effects on Traditional Employment

Outsourcing has led to the informalisation of many jobs, with large firms outsourcing specialised tasks to smaller enterprises or individuals.

Conclusion and Future Trends

Summary of Employment Trends

The workforce in India has seen significant changes, with a shift towards service sector jobs and an increase in informal employment.

Anticipated Changes in Employment Patterns

Future trends suggest that technological advancements and government policies will continue to shape employment patterns, with a likely emphasis on formalising the workforce and improving job security.

Understanding these dynamics is essential for planning and improving India's human resource potential while addressing the social issues within the workforce.

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