ASSIGNMENT 2

LABOUR MARKET :
The labour market is one of the major aspects of
any economy. It refers to the supply and demand
for labour in the market. Here the supply is
provided by the employees and the employers
provide the demand.
LABOUR MARKET IN INDIA :
The labour market in India can be classified into 3
sections as follows :
The first category includes the labourers in the
rural area. They constitute about 60 percent of
the labour force in India.
The second section is the formally organized sector
which constitutes about 8 percent of the workforce
in India.
The last section is the one which represents the
urban unorganized or the informal structure
constituting about 32 percent of the workforce in
India.
STATISTICAL DATA :

The work force has grown in the years.

The labourers have increased from 276.3 million to
385.5 million between 1977 to 1978 and 1993 to
1994. Thus an annual growth rate of 21 % was
witnessed. During the year of 1999 to 2000 the
workforce was 407 million. In 2004-05 the
workforce had grown upto 430 million and it was
500 million in 2006.
Agriculture and rural Indian industries occupy two
thirds of the labour market in India. One third of
rural households are agricultural labour household
who depend on wage employment. Only 9% of the
workforce are in the organized sector and the
remaining 91% are either self employed or are in
the unorganized sector are work in the normal
wage labourers list.

LABOUR FORCE CATEGORIES :

Self employed workers
Wage and slalary earners
Casual workers and unemployed workers

Self employed workers are very loosely connected

to the labour market because they can share and
divide the work to their convenience. Casual
contractual workers and the unemployed workers
are very closely connected to the labour market.
Casual workers and the job workers do not have
any job security. Therefore the employees in the
rural area are not secured and also hindered by the
urban workers as the salary of thesis is higher than
them. Also people who are self employed in the
rural area into agricultural which is always
uncertain.
CONCLUSION :
Thus the labour market in India is very uneven and
a change has to be brought about to change the
current scenario, Only then the inequalities of
wealth can be overcome.The population has to be
controlled so that there is no unemployment and
the standard of living of the people can be
increased. Various steps have been taken to control
population and increase the employment but the
people have to understand and for that there is a
need for education. Therefore education is a
requisite and thus the situation in the labour

market can be improved and thus a better standed

of living can be experienced by every individual.