1. EMPLOYMENT :
GROWTH, INFORMALISATION
AND OTHER ISSUES

2. Employment
Employment is a relationship between two parties, usually based on a contract where work is paid for, where one party is the employer and the other is the employee.

3. Importance of employment
It helps to earn a living
It gives mental satisfaction
It contribute to economic growth and development

4. Why we study employment
To know the quality and nature of employment
To understand the contribution of different sectors
It helps human resource Planning
To understand exploitation, child labour etc
To tackle problems exist in the field of employment

6. Workers and Employment
The total money value of all goods and
services produced in a country in a year is
called Gross Domestic Product (GDP).

7. Workers and Employment
When we add Net earnings from
foreign transactions to GDP, we get
Gross National Product (GNP).

8. Workers and Employment
Those activities which contribute
to the GNP are called economic activities.

9. All those who are engaged in economic activities are called Workers.
Workers and Employment
All those who are engaged in
economic activities are called Workers.

10. Workers and Employment
Temporary abstain
from work due to illness, injury or
other physical disability, bad weather,
Festivals, social or religious functions
are also workers.

11. Help the main workers are also Workers.
Workers and Employment
Those who
Help the main workers are also Workers.

12. Those who are self employed are
Workers and Employment
Those who are self employed are
also workers.

13. in India is diverse and complex
Workers and Employment
Employment situation
in India is diverse and complex

14. FEATURES OF EMPLOYMENT IN INDIA
70% of workers are men and 30% are women
Many workers have only seasonal employment
Women account for of workers in rural areas.
One fifth of workers in urban areas
During , India had about 400 million workforce.

16. FEATURES OF EMPLOYMENT IN INDIA
93% of the workers work in un organised sector.
Only 7% worked in the organised sector
Child labour is prevalent in many parts of the country.
Many of the workers in un organised sector work for less than minimum wages

18. Participation of people in employment
Worker population ratio is an important
indicator of the employment situation
in an economy. This is the ratio of workers
to total population
IT CAN BE CALCULATED

19. Worker Population Ratio in India
Around 39% of the population are workers.
The worker population ratio is around 40% in rural areas and 35.5% in urban areas.
Women work participation is low in urban areas (15%) and high (25%) in rural areas.

20. Worker Population Ratio in India
It is common to find that where men are able to earn high incomes, families discourage female members from taking up jobs.
Many activities for the household engaged in by women are not recognised as productive work.

21. Reasons for Variation of women workers in Rural and Urban Areas
Lower literacy and educational attainments of women
In urban areas there are more economic opportunities. In rural areas opportunities are lower. Hence more women in rural areas forced to work.
Many men want their wives to be house wives.

22. Worker population ratio in India
( )
Sex
Total
Rural
Urban
Men
54.4
54.3
54.6
Women
21.9
24.8
14.7
38.6
39.9
35.5

23. Self employed & Hired workers
There are different categories of workers
REGULAR SALARIED
EMPLOYEES
SELF EMPLOYED
CASUAL WORKERS

25. Regular Salaried Employees
People employed in organised sector
and getting regular salary and allowances
are called Regular Salaried Employees.
They account 15% of the India’s workforce.

26. Self Employed Workers who own and operate an
enterprise to earn their livelihood are
known as selfEmployed.
More than 50% of the workforce
in India are Self Employed.

27. Casual Workers Workers who get daily wages are called
Casual Wage Labourers.
They account for 33% of India’s workforce.

28. Region wise Distribution of
Employment in 2012
Category
Urban
Rural
Self Employed 41 54
Regular Salaried 7
Casual Workers 18 39

29. Gender wise Distribution of
Employment in 2012
Category
Male
Female
Self Employed 50 53
Regular Salaried 18 10
Casual Workers 32 37

30. SECTION WISE EMPLOYMENT All economic activities are classified under
three main head.
They are,

31. 21%
50%
29%

32. 1. Primary sector Agriculture and allied activities. Mining Quarrying
Fisheries etc.

33. 2. Secondary sector Manufacturing Electricity Gas Water Supply
Construction etc.

34. 3. Tertiary sector Trade and Commerce Transport and Storage Services
Education
Health care etc.

35. The primary sector is the major source of employment for majority of workers (around 49%).
Around 24% of workers are employed in the secondary sector (around 27% )
Around 67% of workers in rural areas depend on the primary sector.

36. Secondary and tertiary sectors provide employment to only around 16% and 17% of workers respectively in rural areas.
Around 63% of workers in urban areas work in the service sector and around 44% in the secondary sector.
The primary sector employs only around 9% of workers.

37. Growth and Changing Structure of Employment.
Economic growth and employment generation are the major goals of our economic development.
During the period , GDP of India grew positively and was higher than the employment growth.
In the Indian economy, without generating employment, we have able to produce more goods and services - scholars refer to this phenomenon as JOBLESS GROWTH.

38. Growth and Changing Structure of Employment.
In 2000, the growth rate was above 6% but growth rate of employment was less than 1%.
During ,the growth of GDP was 8.7% and employment growth was 0.28%.

39. Structure of Employment.
Growth and Changing
Structure of Employment.
In , above 74% workforce was engaged in primary sector and , this proportion has declined to 60%. In it was 49%
Contribution of secondary sector increased from 10.9% to 20% and tertiary sector increased from 14.8% to 31% during the period to

41. Structure of Employment.
Growth and Changing
Structure of Employment.
Status
2012
Self Employed
61.4
54.6
51.5
Regular Salaried
15.4
13.6 14
Casual Labourers
23.2
31.8
34.5
Total
100

42. CASUALISATION OF WORKFORCE
The process of people moving from self
employment and regular salaried
employment to casual wage work is called
CASUALISATION of workforce.
Casual Workers in India

43. Informalisation of Indian
Workforce
We classify the workforce into two categories-
Formal Workers
(Organised)
Workers in formal (organised) sector
Workers in formal (organised) sector
All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called formal sector workers.

45. Informalisation of Indian
Workforce
We classify the workforce into two categories-
Informal Workers
(Unorganised)
All other enterprises form the informal sector. This sector includes millions of farmers, agricultural labourers, owners of small enterprises and people working in those enterprises as also the self employed who do not have any hired worker.

47. The formal sector workers enjoy social security benefits.
They get paid leave, medical benefits, maternity leave for women, provident fund, gratuity, pension benefits etc.

49. Informalisation of Indian
Workforce
In 2010,there are about 466 million workers in the country, only 35 million (7.5%) are in the formal sector.
Since the late 1970s, many developing countries, including India, starts paying attention to informal sector workers and enterprises.

50. INFORMAL EMPLOYMENT – A COMPARISON

51. Informalisation of Indian
Workforce
Workers and enterprises in the informal sector do not get regular income.
They do not have any protection or regulation from the Govt.
Workers are dismissed without any compensation.
Technology used in this sector is outdated.
They also do not maintain any accounts.
Workers of this sector live in slums and are squatters.

53. UNEMPLOYMENT
NSSO defines unemployment as a situation in which all those who, owing to lack of work, are not working but either seek work through employment exchanges, intermediaries, friends or relatives, or by making applications to prospective employers or express their willingness or availability for work under the prevailing conditions of work and remunerations.

55. UNEMPLOYMENT
Economists define unemployed person as one who is not able to get employment of even one hour in half a day.
The major sources of data on unemployment are NSSO, Reports of Census of India and Employment Exchanges.

56. If a person is willing to work, but work it is open unemployment.
Types of Unemployment
1. Open Unemployment
If a person is willing to work, but work
is not available to him,
it is open unemployment.

57. Types of Unemployment 2. Disguised Unemployment
This is a peculiar kind of unemployment that
exists in the agricultural sector of developing
Countries.
It is a situation in which more
people are employed in agriculture
than necessary.

58. Types of Unemployment 3. Seasonal Unemployment
It can provide jobs only during certain seasons.
Agriculture is a seasonal occupation. It gives jobs
only during the busy sowing and harvesting seasons.
In between, employment opportunities are limited.

59. Types of Unemployment 4. Structural Unemployment
Unemployment that occur due to
changes in technology is structural unemployment.

60. Government and Employment Generation
Since independence,the union and state governments have played an important role in generating employment or creating opportunities for employment generation.
Governments efforts can be broadly classified into two :
Direct
indirect.

61. Employment Generation
Government and
Employment Generation
DIRECT GENERATION
In the first category, government employs people in various departments for administrative purposes. They also run industries, hotels and transport companies and hence provides employment directly to workers.

62. Employment Generation
Government and
Employment Generation
INDIRECT GENERATION
When output of goods and services from Government enterprises increases, then private enterprises which receive raw materials from Government enterprises will also raise their output and hence increase the number of employment opportunities in the economy. This is the indirect generation of employment opportunities in the economy.