Employment: Growth - Informalisation and Other Issues

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CBSE Learning Objectives – Key Concepts & Skills You Must Know

Learning Objectives

Understand basic concepts relating to employment such as economic activity, worker, workforce, and unemployment.
Understand the nature of participation of men and women in various economic activities across different sectors.
Know the nature and extent of unemployment.
Assess government initiatives in generating employment opportunities across various sectors and regions.

CBSE Revision Notes & Quick Summary for Last-Minute Study

Employment: Growth, Informalisation and Other Issues

Understanding Employment

Basic Concepts: Economic activity, worker, workforce, unemployment.
Gender Participation: Nature of participation of men and women in various economic activities across sectors.
Unemployment: Nature and extent of unemployment in India.
Government Initiatives: Assessment of initiatives taken by the government to generate employment opportunities.

Employment Patterns

Trends in Employment Pattern (Sector-wise and Status-wise), 1972-2023 (in %)

Item	1972-73	1983	1993-94	2011-2012	2017-2018
Sector
Primary	74.3	68.6	64	48.9	46.1
Secondary	10.9	11.5	16	24.3	24.9
Services	14.8	16.9	20	26.8	29.0
Total	100.0	100.0	100.0	100.0	100.0

Employment Status

Status	1972-73	1983	1993-94	2011-2012	2017-2018
Self-employed	61.4	57.3	54.6	52.0	55.6
Regular Salaried Employees	15.4	13.8	13.6	18.0	21.1
Casual Wage Labourers	23.2	28.9	31.8	30.0	23.3
Total	100.0	100.0	100.0	100.0	100.0

Nature of Employment

Self-Employment: Major employment provider, especially in rural areas.
Casualisation of Workforce: Movement from self-employment and regular salaried employment to casual wage work, leading to vulnerability.
Gender Disparities: Higher concentration of women in the primary sector compared to men.

Government Initiatives

Employment Generation: Government's role in generating employment through various schemes and policies.
Sectoral Employment: Service sector growth post-reform, with new jobs primarily in the informal sector.

Conclusion

Workforce Composition: Majority of India's workforce is self-employed, with significant reliance on agriculture.
Challenges: Deceleration in employment growth and the prevalence of disguised unemployment in rural areas.

CBSE Exam Tips, Important Questions & Common Mistakes to Avoid

Common Mistakes and Exam Tips

Common Pitfalls

Misunderstanding Employment Types: Students often confuse self-employed individuals with casual wage laborers. It's important to recognize that both categories exist and have different implications for job security and income.
Ignoring Gender Disparities: Many overlook the significant differences in employment rates between men and women, particularly in urban versus rural settings. This can lead to incomplete analyses in exam responses.
Neglecting Informal Sector Employment: Failing to account for the informal sector can skew understanding of overall employment trends, especially in discussions about job security and economic contributions.
Overlooking Disguised Unemployment: Students may not fully grasp the concept of disguised unemployment, particularly in agricultural contexts, which can lead to misinterpretations of employment data.

Exam Tips

Define Key Terms: Always define key terms such as 'worker-population ratio' and 'disguised unemployment' clearly in your answers to demonstrate understanding.
Use Data Effectively: When discussing trends, refer to specific data points (e.g., employment percentages in different sectors) to support your arguments.
Analyze Case Studies: Be prepared to analyze case studies or examples provided in the exam, as they often illustrate broader concepts in employment trends.
Discuss Government Initiatives: Include discussions on government initiatives aimed at employment generation, as these are often key points in exam questions.
Consider Societal Impacts: Reflect on how employment trends affect different demographics, particularly marginalized groups, to provide a comprehensive answer.

CBSE Quiz & Practice Test – MCQs, True/False Questions with Solutions

Multiple Choice Questions

Formalisation

Casualisation

Industrialisation

Urbanisation

Correct Answer: B

Solution:

The process of moving from self-employment and regular salaried employment to casual wage work is called casualisation of workforce.

High job security and regular income

Protection by social security schemes

Lack of regulation and outdated technology

High wages and modern technology

Correct Answer: C

Solution:

The informal sector in India is characterized by a lack of regulation, outdated technology, and the absence of social security schemes.

Rapid industrialization

Closure of textile mills

Increase in agricultural activities

Government policies

Correct Answer: B

Solution:

The closure of textile mills, as seen in Ahmedabad, led many workers to move to the informal sector.

Secondary sector

Service sector

Primary sector

Tertiary sector

Correct Answer: C

Solution:

The primary sector, which includes agriculture and allied activities, is the major source of employment for about 60% of the rural workforce in India.

High job security

Regular income

Lack of protection and regulation

Advanced technology usage

Correct Answer: C

Solution:

The informal sector is characterized by a lack of protection or regulation from the government.

To provide urban employment opportunities.

To offer skill development programs.

To guarantee 100 days of wage employment in rural areas.

To promote entrepreneurship in rural areas.

Correct Answer: C

Solution:

MGNREGA aims to provide 100 days of guaranteed wage employment to rural households who volunteer to do unskilled manual work, thereby improving rural employment.

Women do not participate in economic activities.

Household activities done by women are not recognized as productive work.

Women are primarily employed in the formal sector.

There is no significant difference in participation rates between men and women.

Correct Answer: B

Solution:

Many household activities done by women are not recognized as productive work, leading to their underestimation in workforce statistics.

Primary sector

Secondary sector

Service sector

Informal sector

Correct Answer: A

Solution:

The primary sector, which includes agriculture, forestry, and fishing, employs about 60% of the rural workforce in India.

Lack of education among women

Narrow definition of work that excludes household activities

High participation of women in the formal sector

Preference for part-time jobs by women

Correct Answer: B

Solution:

The underestimation of women's work in India is primarily due to the narrow definition of work, which often excludes household activities performed by women.

Increase in self-employment

Shift from regular salaried employment to casual wage work

Growth in agricultural employment

Rise in government employment

Correct Answer: B

Solution:

Casualisation refers to the process of moving from self-employment and regular salaried employment to casual wage work.

The movement from self-employment to regular salaried employment

The shift from regular salaried employment to casual wage work

The increase in formal sector employment

The transition of workers from urban to rural areas

Correct Answer: B

Solution:

Casualisation refers to the process where workers move from self-employment and regular salaried employment to casual wage work, making them more vulnerable.

Regular salaried employment

Self-employment

Casual wage labour

Government jobs

Correct Answer: B

Solution:

Self-employment is the most common form of employment in rural India, with a significant portion of the workforce engaged in this type of employment.

Rapid industrialization

Increase in agricultural productivity

Widening gap between GDP growth and employment generation

Expansion of the informal sector

Correct Answer: C

Solution:

During the late 1990s, India experienced a widening gap between GDP growth and employment generation, leading to a decline in employment growth.

Movement from casual wage work to self-employment

Increase in regular salaried employment

Movement from self-employment and regular salaried employment to casual wage work

Decrease in the number of casual wage laborers

Correct Answer: C

Solution:

Casualisation refers to the process where individuals move from self-employment and regular salaried employment to casual wage work, making them more vulnerable.

Pradhan Mantri Awas Yojana

Mahatma Gandhi National Rural Employment Guarantee Act

Skill India Mission

Make in India Initiative

Correct Answer: B

Solution:

The Mahatma Gandhi National Rural Employment Guarantee Act promises 100 days of guaranteed wage employment to all rural households willing to do unskilled manual work.

To gain social status

To earn a living

To acquire new skills

To contribute to national income

Correct Answer: B

Solution:

People work primarily for 'earning' a living, which gives them a sense of self-worth and enables them to relate meaningfully with others.

20%

33%

60%

75%

Correct Answer: C

Solution:

About 60% of the urban workforce in India is engaged in the service sector.

To earn a living and contribute to national income

To avoid boredom

To gain social status

To fulfill family expectations

Correct Answer: A

Solution:

People work primarily to earn a living and contribute to the national income by engaging in various economic activities.

Service sector

Manufacturing sector

Agriculture and allied activities

Information Technology sector

Correct Answer: C

Solution:

About three-fifths of India's workforce depends on agriculture and other allied activities as the major source of livelihood.

A student studying at a university

A farmer working in the fields

A person doing household chores

A retired person receiving a pension

Correct Answer: B

Solution:

Economic activities are those that contribute to the gross national product, such as farming.

Structural unemployment

Cyclical unemployment

Frictional unemployment

Disguised unemployment

Correct Answer: D

Solution:

Disguised unemployment is a common form of unemployment in rural India.

Agriculture and allied activities

Manufacturing industries

Service sector

Construction

Correct Answer: A

Solution:

About three-fifth of India's workforce depends on agriculture and other allied activities as the major source of livelihood.

A farmer working on the field

A teacher giving tuition at home

A person engaged in gambling

A shopkeeper selling goods

Correct Answer: C

Solution:

Economic activities are those that contribute to the gross national product. Gambling does not contribute to the production of goods or services.

Structural unemployment

Cyclical unemployment

Seasonal unemployment

Frictional unemployment

Correct Answer: C

Solution:

Seasonal unemployment is common in India, especially in agriculture, where work is not available throughout the year.

Primary sector

Secondary sector

Service sector

Informal sector

Correct Answer: A

Solution:

As per the trends in employment patterns, the primary sector in India continues to have the highest proportion of self-employed workers.

To earn a living

To inherit money

To avoid work

To save labor

Correct Answer: A

Solution:

Employment provides individuals with a sense of self-worth and enables them to relate meaningfully with others, primarily through earning a living.

High job security

Access to social security benefits

Lack of regular income and protection

Over-regulation by the government

Correct Answer: C

Solution:

Workers in the informal sector face significant challenges such as lack of regular income, protection, and regulation, making their economic situation precarious.

Primary sector

Secondary sector

Service sector

Informal sector

Correct Answer: C

Solution:

The service sector has shown a moderate rise in the share of regular salaried employees during the period 2011-2023, as indicated by the employment trends.

Formalization

Casualisation

Industrialization

Urbanization

Correct Answer: B

Solution:

The process of moving from self-employment and regular salaried employment to casual wage work is called casualisation of workforce.

High wages

Job security

Lack of protection and regulation

Excessive government intervention

Correct Answer: C

Solution:

Workers and enterprises in the informal sector do not get regular income and lack protection or regulation from the government.

They have secure jobs with regular income.

They are covered by social security schemes.

They often lack job security and work in informal settings.

They are primarily employed in government sectors.

Correct Answer: C

Solution:

Casual wage laborers often lack job security, work in informal settings, and do not have regular income or social security.

Providing subsidies to private companies

Dam construction work

Tax incentives for startups

Encouraging foreign investments

Correct Answer: B

Solution:

Dam construction work is an example of direct employment generation by the government.

It employs the majority of the rural workforce.

It has shown a significant increase in informal employment opportunities.

It is the primary source of employment for women.

It has decreased in importance compared to the primary sector.

Correct Answer: B

Solution:

In the post-reform period, the service sector in India has shown a significant increase in employment opportunities, mainly in the informal sector, offering mostly casual jobs.

Primary sector

Secondary sector

Service sector

Informal sector

Correct Answer: C

Solution:

During the post-reform period, India has witnessed a significant increase in employment opportunities in the service sector, particularly in the informal sector.

Primary sector

Secondary sector

Service sector

Informal sector

Correct Answer: C

Solution:

During the post-reform period, India has witnessed employment opportunities in the service sector.

Increase in formal sector jobs with social security benefits

Shift of workers from the formal sector to the informal sector

Rise in government employment opportunities

Growth of self-employment opportunities in urban areas

Correct Answer: B

Solution:

Informalisation refers to the shift of workers from the formal sector, which provides job security and benefits, to the informal sector, where such securities are absent.

To provide urban employment

To guarantee 100 days of wage employment to rural households

To promote industrial growth

To increase agricultural productivity

Correct Answer: B

Solution:

The Mahatma Gandhi National Rural Employment Guarantee Act 2005 promises 100 days of guaranteed wage employment to all rural households who volunteer to do unskilled manual work.

It refers to people who are unemployed for a long duration.

It refers to a situation where more people are employed than actually needed.

It refers to seasonal unemployment in agriculture.

It refers to unemployment due to technological advancements.

Correct Answer: B

Solution:

Disguised unemployment occurs when more people are employed than necessary, often seen in agricultural sectors where the workforce is not utilized to its full potential.

Increase in agricultural productivity

Widening gap between GDP growth and employment

Government policies favoring urban development

Rise in self-employment

Correct Answer: B

Solution:

During the late 1990s, there was a widening gap between the growth of GDP and employment, leading to a decline in employment growth.

Workers are employed but their contribution to output is negligible.

Workers are fully employed with high productivity.

Workers are employed in high-tech industries.

Workers receive high wages for their work.

Correct Answer: A

Solution:

Disguised unemployment occurs when more people are employed than necessary, leading to negligible contribution to output. This is common in rural India where agricultural tasks often have more workers than needed.

By providing loans to start new businesses

By offering skill training programs

By guaranteeing 100 days of wage employment for rural households

By promoting foreign direct investment in rural areas

Correct Answer: C

Solution:

MGNREGA aims to generate employment by guaranteeing 100 days of wage employment to rural households willing to do unskilled manual work.

Permanent

Temporary

Casual

Contractual

Correct Answer: C

Solution:

The new jobs in the service sector are found mostly in the informal sector and the nature of jobs is also mostly casual.

Primary sector

Secondary sector

Service sector

Informal sector

Correct Answer: A

Solution:

About three-fifth of India's workforce depends on agriculture and other allied activities, which are part of the primary sector, as the major source of livelihood.

A farmer producing crops

A teacher educating students

A homemaker managing household chores

A factory worker manufacturing goods

Correct Answer: C

Solution:

Economic activities contributing to the GNP include those that produce goods or services for the market. Homemaking, although valuable, is not considered an economic activity in this context as it does not involve market transactions.

Subsidizing agricultural inputs

Mahatma Gandhi National Rural Employment Guarantee Act

Reducing corporate taxes

Providing educational scholarships

Correct Answer: B

Solution:

The Mahatma Gandhi National Rural Employment Guarantee Act directly generates employment by providing 100 days of guaranteed wage employment to rural households.

High job security

Regular income

Lack of social security

Government regulation

Correct Answer: C

Solution:

Jobs in the informal sector are characterized by a lack of social security and regulation, making workers vulnerable.

Only provides direct employment through government jobs.

Focuses solely on the private sector for employment generation.

Generates employment both directly and indirectly through various measures.

Relies entirely on foreign investments for job creation.

Correct Answer: C

Solution:

The government generates employment both directly by employing people in various departments and indirectly by creating opportunities through enterprises and schemes.

Formalization

Informalization

Casualization

Industrialization

Correct Answer: C

Solution:

The process of moving from self-employment and regular salaried employment to casual wage work is known as casualization of the workforce.

Pradhan Mantri Gram Sadak Yojana

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

Make in India

Digital India

Correct Answer: B

Solution:

MGNREGA is a government initiative that provides 100 days of guaranteed wage employment to rural households willing to do unskilled manual work.

High wages

Lack of formal education

Surplus labor in agriculture

Technological advancements

Correct Answer: C

Solution:

Disguised unemployment in rural India primarily persists due to surplus labor in agriculture, where more people are employed than necessary.

Pradhan Mantri Awas Yojana

Mahatma Gandhi National Rural Employment Guarantee Act

Skill India Mission

Startup India

Correct Answer: B

Solution:

The Mahatma Gandhi National Rural Employment Guarantee Act promises 100 days of guaranteed wage employment to rural households who volunteer to do unskilled manual work.

A farmer working in fields

A teacher giving private tuition

A person gambling

A shopkeeper selling goods

Correct Answer: C

Solution:

Gambling is not considered an economic activity as it does not contribute to the gross national product.

Increase in regular salaried employment

Shift from self-employment to casual wage work

Growth of employment in the formal sector

Rise in agricultural employment

Correct Answer: B

Solution:

Casualisation of workforce refers to the process of moving from self-employment and regular salaried employment to casual wage work.

Providing loans to businesses

Directly employing people in various departments

Reducing taxes for companies

Encouraging foreign investments

Correct Answer: B

Solution:

The government directly employs people in various departments and runs industries, hotels, and transport companies, providing employment directly to workers.

True or False

Correct Answer: False

Solution:

Workers and enterprises in the informal sector do not get regular income and lack protection or regulation from the government.

Correct Answer: True

Solution:

The excerpts state that during 1950-2010, India's GDP grew positively and was higher than employment growth.

Correct Answer: True

Solution:

The excerpt describes the informal sector as lacking regular income, protection, or regulation from the government.

Correct Answer: True

Solution:

About 60 percent of urban workers are in the service sector.

Correct Answer: False

Solution:

About three-fifth of India's workforce depends on agriculture and other allied activities as the major source of livelihood.

Correct Answer: True

Solution:

According to the excerpts, about 60% of urban workers are employed in the service sector.

Correct Answer: False

Solution:

Workers and enterprises in the informal sector do not get regular income; they do not have any protection or regulation from the government.

Correct Answer: True

Solution:

The excerpts mention that about 60% of urban workers are employed in the service sector.

Correct Answer: False

Solution:

The government is the major formal sector employer in the country, not the informal sector.

Correct Answer: False

Solution:

The majority of India's workforce resides in rural areas, as mentioned in the excerpts.

Correct Answer: True

Solution:

The excerpts indicate that about three-fifths of India's workforce depends on agriculture and other allied activities, which are part of the primary sector.

Correct Answer: False

Solution:

Disguised unemployment is a common form of unemployment in rural India.

Correct Answer: False

Solution:

In recent years, the growth of employment has decelerated.

Correct Answer: True

Solution:

According to the provided excerpts, the majority of workers in India are self-employed, with casual wage labourers and regular salaried employees together accounting for less than half of India's workforce.

Correct Answer: False

Solution:

The Mahatma Gandhi National Rural Employment Guarantee Act promises 100 days of guaranteed wage employment to all rural households.

Correct Answer: False

Solution:

The excerpts state that the majority of workers in India are self-employed, with casual wage labourers and regular salaried employees together accounting for less than half of the workforce.

Correct Answer: False

Solution:

The excerpts describe the informal sector as lacking regular income and job security.

Correct Answer: True

Solution:

Men, particularly rural men, form the major section of the workforce in India.

Correct Answer: True

Solution:

The excerpts state that about 60% of the urban workers are engaged in the service sector.

Correct Answer: True

Solution:

The excerpts mention that disguised unemployment is a common form of unemployment in rural India.

Correct Answer: False

Solution:

The excerpts mention that the growth of GDP in India has been higher than the growth of employment, and there has been a widening gap between the two.

Correct Answer: True

Solution:

According to the provided excerpts, about three-fifths of India's workforce depends on agriculture and other allied activities as the major source of livelihood.

Correct Answer: True

Solution:

About three-fifth of India's workforce depends on agriculture and other allied activities as the major source of livelihood.

Correct Answer: False

Solution:

The excerpts indicate that about 25% of the workforce is employed in the secondary sector, not more than half.

Correct Answer: False

Solution:

Casual wage labourers and regular salaried employees together account for less than half the proportion of India's workforce.

Correct Answer: False

Solution:

The excerpts describe the informal sector as lacking regular income and protection or regulation from the government, with outdated technology and no social security.

Correct Answer: True

Solution:

Self-employment continues to be the major employment provider in India.

Correct Answer: True

Solution:

In rural areas, for every 100 rural women about 30 participate in the employment market, whereas in urban areas, only about 19 out of 100 urban females are engaged in some economic activities.

Correct Answer: True

Solution:

Disguised unemployment occurs when more people are employed than actually needed, and it is common in rural areas where agriculture is the primary activity.

Correct Answer: True

Solution:

According to the excerpt, the government is the major formal sector employer in the country.

Correct Answer: True

Solution:

The excerpts explain that the government generates employment directly by employing people in various departments and indirectly by increasing output in government enterprises that support private sector employment.

Correct Answer: False

Solution:

In recent years, the growth of employment has decelerated.

Correct Answer: False

Solution:

About three-fifths of India's workforce depends on agriculture and other allied activities as the major source of livelihood.

Correct Answer: False

Solution:

In recent years, the growth of employment has decelerated, and there have been fluctuations.

Correct Answer: True

Solution:

During the period 1950-2010, India's GDP grew positively and was higher than the employment growth.

Correct Answer: True

Solution:

According to the excerpt, the majority of workers in India are self-employed.

Correct Answer: True

Solution:

In India, the government plays a significant role in providing formal sector employment through various departments and public sector enterprises.

Correct Answer: True

Solution:

Self-employment continues to be the major employment provider in India.

Correct Answer: True

Solution:

The Act provides 100 days of guaranteed wage employment to rural households willing to do unskilled manual work.

Correct Answer: True

Solution:

The excerpts describe the informal sector as using outdated technology, and workers in this sector do not receive regular income.

Correct Answer: True

Solution:

The excerpts mention that technology used in the informal sector enterprises is outdated and they do not maintain any accounts.

Correct Answer: False

Solution:

The excerpt states that about 60% of the workforce in rural India depends on agriculture, forestry, and fishing, making it the largest employer.

Correct Answer: False

Solution:

In recent years, the growth of employment has decelerated.

Employment: Growth - Informalisation and Other Issues

AI Learning Assistant

CBSE Learning Objectives – Key Concepts & Skills You Must Know

Learning Objectives

CBSE Revision Notes & Quick Summary for Last-Minute Study

Employment: Growth, Informalisation and Other Issues

Understanding Employment

Employment Patterns

Trends in Employment Pattern (Sector-wise and Status-wise), 1972-2023 (in %)

Employment Status

Nature of Employment

Government Initiatives

Conclusion

CBSE Exam Tips, Important Questions & Common Mistakes to Avoid

Common Mistakes and Exam Tips

Common Pitfalls

Exam Tips

Multiple Choice Questions

Q1.What is the term used to describe the shift from self-employment and regular salaried employment to casual wage work?

Correct Answer: B

Q2.What is a significant characteristic of employment in the informal sector in India?

Correct Answer: C

Q3.What is the primary reason for the informalisation of the workforce in India?

Correct Answer: B

Q4.Which sector is the primary employer for the majority of the workforce in rural India?

Correct Answer: C

Q5.What is the main characteristic of the informal sector in India?

Correct Answer: C

Q6.What is the main objective of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?

Correct Answer: C

Q7.What is the main reason for the non-recognition of women's work in the workforce statistics of India?

Correct Answer: B

Q8.In the context of India's employment structure, which sector employs the highest percentage of the rural workforce?

Correct Answer: A

Q9.What is the primary reason for the underestimation of women's work in India?

Correct Answer: B

Q10.Which of the following best describes the term 'casualisation' of the workforce?

Correct Answer: B

Q11.In the context of the Indian workforce, what does the term 'casualisation' refer to?

Correct Answer: B

Q12.Which type of employment is most common in rural India?

Correct Answer: B

Q13.What is the primary reason for the decline in employment growth in India during the late 1990s?

Correct Answer: C

Q14.Which of the following statements best describes the concept of 'casualisation' of the workforce in India?

Correct Answer: C

Q15.Which of the following government initiatives aims to provide guaranteed wage employment to rural households in India?

Correct Answer: B

Q16.What is the primary reason people work according to the text?

Correct Answer: B

Q17.What percentage of the urban workforce in India is employed in the service sector?

Correct Answer: C

Q18.What is the primary reason people work according to the provided excerpts?

Correct Answer: A

Q19.Which sector employs the majority of the rural workforce in India?

Correct Answer: C

Q20.Which of the following is considered an economic activity contributing to the gross national product?

Correct Answer: B

Q21.Which type of unemployment is common in rural India?

Correct Answer: D

Q22.What is the primary source of employment for the majority of India's workforce?

Correct Answer: A

Q23.Which of the following is NOT considered an economic activity contributing to the gross national product?

Correct Answer: C

Q24.What type of unemployment is common in India due to the nature of agricultural work?

Correct Answer: C

Q25.In the context of employment in India, which of the following sectors has the highest proportion of self-employed workers as of 2023?

Correct Answer: A

Q26.What is the primary role of employment in an individual's life according to the excerpts?

Correct Answer: A

Q27.What is a significant challenge faced by workers in the informal sector in India?

Correct Answer: C

Q28.In the context of employment in India, which sector has shown a moderate rise in the share of regular salaried employees during the period 2011-2023?

Correct Answer: C

Q29.What is the term used to describe the process of moving from self-employment to casual wage work?

Correct Answer: B

Q30.What is the main challenge associated with the informal sector in terms of employment?

Correct Answer: C

Q31.Which of the following is a characteristic of casual wage laborers in India?

Correct Answer: C