WHY WORK?

EARN A LIVING

SENSE OF SELF WORTH

CONTRIBUTION TO NY

FOR DEPENDANTS

HELPS HR PLANNING

HELPS SOCIETAL UNDERSTANDING

SECTORAL CONTRIBUTION
• All human activities that contribute to the Gross
National Product of the country are called economic
activities.
• Economic activities are rewarded in the form of
money.
• PRIMARY SECONDARY TERTIARY
• WORKER: Worker is an individual who is
engaged in an economic activity in order to
earn money.
• SELF EMPLOYED
• PERMANENT LABOURERS
• CASUAL LABOURERS
• SEASONAL WORKERS
• WORKERS IN ORGANISED SECTOR
• WORKERS IN UNORGANISED SECTOR
 Composition of Indian Workers
• India has 473 million workers (2011 – 12)
• Nearly three fourth (75%) of them are in rural areas
• Men constitute 70% of our work force.
• In rural areas women constitute one third of the
workers.
• In urban areas women constitute one fifth of the
workers.
• Women who are engaged in household activities
like cooking, washing, cleaning etc. are not
considered workers because these are unpaid jobs.
• LABOUR FORCE
• All persons, who are working and though not
working, are seeking and are available for
work, are deemed to be in the labour force.

• EMPLOYED + UNEMPLOYED

• Total population – unfit people(old, differently

abled) – people who are unwilling to work –
people who are not available for work
 LFPR 40% 56%(M) 23%(F)
Labour force
Participation
Rate

RURAL URBAN
41% 40%

MALE FEMALE MALE FEMALE

55% 25% 56% 16%
 WORK FORCE
• NUMBER OF PEOPLE WHO ARE ACTUALLY
EMPLOYED AT A PARTICULAR TIME.
• UNEMPLOYED = LABOUR FORCE – WORK
FORCE
 INFERENCE FROM TABLE
• Rural population has limited resources and
participate more in the employment market
• Urban people have variety of opportunities. They
look for appropriate job to suit their qualification
and skill
• Rural – educational level is low – high drop out
rates – join work force
• General – higher proportion of males work –
higher income earning ability among men –
discourage women in work force
•
• MORE WOMEN WORK IN RURAL AREAS
- poor economic condition
- Underestimation of women workers – due to
non-recognition of their work as productive
work/economic activity
URBAN vs RURAL
Worker Population Ratio is High in Rural Area
and Low in Urban Area.
• Income earned by the rural workers is
low. So, more members of the family
work to earn a living.
• Many children leave the educational
institutions and join the workforce to
support their families.
• Urban workers earn higher incomes. So,
their children are able to complete
education before joining work.
 Worker- population ratio of
Women is Low
• In families where men earn high income, women
are discouraged from working outside.

• Women do a lot of work in houses. These works are

not considered employment as they are not
rewarded in the form of money.
WORKER POPULATION RATIO AMONG RURAL
WOMEN IS HIGHER THAN THAT OF URBAN WOMEN
(I) Income of rural workers is low. So, to run the
family women should also work.
(ii) Urban workers earn higher incomes. So, women
are discouraged from working.
(iii) Women’s education is neglected in India.
Agricultural works in rural areas do not require
education. So, women easily get jobs.
 CATEGORIES OF WORKERS

SELF EMPLOYED REGULAR SALARIED

CASUAL WORKERS
1. Self Employed: They own and operate their own
enterprises. About 52% of workers in India are Self
Employed.
2. Casual Workers They work for others to earn a
living. They do not get regular work.
For Example: Construction Workers. They constitute
25% of workers.
3. Regular Salaried Employees: A person who is
employed by an enterprise and paid wages on a
regular basis is known as regular salaried employees.
For example: A Civil Engineer working for a
construction company. They constitute 23% of
workers.
Regular Salaried Employees are found more in Urban
areas than in Rural areas

• Big Enterprises that employ workers on a regular

basis are found mainly in urban areas.

• In rural areas people are mostly employed in

farming. Many of them are landless. Work is not
regular.
Less number of women are found in regular salaried
employment
• Women are less educated

• Very less number of women gets higher education

and advanced skill training.

• Regular salaried jobs require higher education and

advanced skills.

• So, proportion of women in regular salaried

employment is less.
• People have been moving from regular salaried jobs

and self employment to casual work. It is called

casualisation of workforce. Several people have lost

their jobs in IT sector recently due to recession.

 INDUSTRIAL DIVISIONS INTO WHICH ECONOMIC ACTIVITIES
ARE CLASSIFIED
AGRICULTURE
MINING AND QUARRYING
MANUFACTURING
ELECTRICITY GAS AND WATER SUPPLY
CONSTRUCTION
TRADE
TRANSPORT AND STORAGE
SERVICES

•
 WORKERS ARE GROUPED IN TO THREE SECTORS

• PRIMARY SECTOR - AGRICULTURE

• SECONDARY SECTOR - MINING AND QUARRYING

MANUFACTURING

ELECTRICITY GAS AND WATER SUPPLY

TERTIARY SECTOR - TRADE, TRASNSPORT, STORAGE AND

SERVICES
 OCCUPATIONAL STRUCTURE OF INDIA
• Primary Sector is the main source of employment
for majority of workers of India.
• Secondary sector provides employment to about
24% of the workers.
• Tertiary sector provides employment to nearly 27%
of the workers.
• In rural areas 64% of the workers are in primary
sector. 20% workers are in Secondary Sector and
Service Sector employs 16% of rural workers.
• Nearly 60% of the workers in urban area are in
Service Sector. Secondary Sector employs 35% of
the workers. Only 5% are in primary sector.
• Women workers are found mostly in rural areas.
GROWTH AND CHANGING STRUCTURE
OF EMPLOYMENT
• During the period of 1950-2010, the GDP of India
grew positively. However the employment
growth rate started declining and reached a level
of growth that India had during the early years of
planning.
• The gap between the GDP growth and the
employment growth widened. i.e. The nation was
able to produce more goods and services without
generating additional employment opportunities.
Such a growth is called as jobless growth.
 INFERENCE FROM THE TABLE
SHIFT FROM FARM TO NON FARM LABOUR

INCREASE IN WORK FORCE IN SECONDARY AND

TERTIARY SECTORS

FALL IN SELF EMPLOYMENT PERCENTAGE

CASUALISATION
 INFORMALISATION OF THE WORK
FORCE
• REFERS to a situation whereby the proportion of
workforce in the informal sector to total
workforce increases.
• General findings
• Agriculture is still the major source of livelihood
• Quality of the employment has deteriorated – no
social security cover. No leave benefits.
Discrimination
• Employees in private sector get a lower salary as
compared to employees doing the same work in
the public sector.
CASUALISATION OF WORK FORCE
 Formal or Organised sector
All the public enterprises and private
establishments which employ 10 or more hired
workers are called formal sector establishments.
Formal workers enjoy social security benefits and
earn more than those in the informal sector.
The government protects them in various ways
through its labour laws and they can form trade
unions
In India, ONLY 6% are working in the formal sector
INFORMAL OR UNORGANISED SECTOR
Includes all those private enterprises which hire less
than 10 workers
Over 90% of workers are found to be working in this
sector.
Male workers in this sector account for 69% of the
workforce.
Workers do not have any protection, irregular
income, no job security
Exploitation of both workers and the government
May form slums and squatters.
 DISTRIBUTION OF WORKERS IN FORMAL AND

INFORMAL SECTORS

• Total number of workers in India is 473 million.

• There are 30 million workers in the formal sector. It is

just 6% of the total number of workers.

• Only 21% of the formal sector workers are women.

• 94% of the workers are in the informal sector.

 WORKERS IN ORGANISED AND
UNORGANISED SECTORS

UNORGANISED SECTOR ORGANISED SECTOR

 • IT IS NECESSARY TO CREATE EMPLOYMENT
OPPORTUNITIES IN FORMAL SECTOR
• Informal Sector does not follow labour laws such as
Minimum Wages Act, Provident Fund Act Gratuity
Act. Formal Sector follows labour laws.
• Wages are high in formal sector. Informal sector
pays very low wages.
• Workers in formal sector enjoy facilities like paid
leave, paid holidays, medical benefit, housing
facilities etc.
• Workers in formal sector have regular work and
they have regular working hours.
• Formal Sector workers enjoy job security. Informal
sector workers do not enjoy job security.

• Workers in formal sector enjoy social security

benefits. Informal sector workers do not enjoy such
benefits.
• STEPS TAKEN TO PROTECT WORKERS IN THE INFORMAL
SECTOR
• The Government has taken steps to provide social
security benefits to the workers in the informal sector.
• The Government is providing support to informal units
to modernise, adopt better technology and become
formal units.
• In rural areas, land reform measures are undertaken to
give land to landless workers.
• Minimum Wages Act is strictly implemented to enable
workers to get fair wages.
• ESI facility is extended to workers.
• Provident Fund benefit is extended to informal sector
workers.
 WORKERS IN FORMAL WORKERS IN INFORMAL
SECTOR(ORGANISED SECTOR) SECTOR(UNORGANISED SECTORS)
Formal Sector includes Public Sector It includes private units that employ
Units and Private Units that employ less than 10 workers.
more than 10 workers
Workers get fair wages Wages are generally very low.
They enjoy social security benefits like They do not enjoy any social security
pension, provident Fund, gratuity etc benefits.
They have paid leave and paid They do not have paid leave and paid
holidays holidays.
They have regular work and job They do not have regular work and job
security security.
Big farmers, workers in Public Sector Small and marginal farmers, land less
Units and workers in large private workers, workers in small units and
units are in formal sector casual workers are in unorganised
sector.
 UNEMPLOYMENT

Unemployment is a situation in which a person is able

and willing to work but does not find a gainful
employment.
 SOURCES OF UNEMPLOYMENT DATA
REPORTS OF CENSUS IN INDIA – population
census which collects data
NSSO collects data through sample surveys and
gives data through estimation
Directorate General of Employment and Training
has been implementing the employment
market information about the structure of
employment, composition and profile of
workers.
DISGUISED UNEMPLOYMENT

SEASONAL

OPEN

INDUSTRIAL

EDUCATED

FRICTIONAL

STRUCTURAL

CYCLICAL
 POPULATION

UNDERDEVEL
SLOW
OPED
GROWTH
AGRICULTURE

DECLINE CAUSES
DEFECTIVE
OF OF
EDUCATION
SSI UNEMPLOYMENT

LOW
SLOW
CAPITAL INDUSTRIAL
FORMATION GROWTH

FAULTY
PLANNING
ACCELERATE GDP GROWTH

CONTROL POPULATION GROWTH

DEVELOPMENT OF AGRICULTURAL SECTOR

ENCOURAGEMENT OF SSI

IMPROVEMENT IN INFRASTRUCTURE

SPECIAL EMPLOYMENT PROGRAM

IMPROVEMENT OF EMPLOYMENT EXCHANGE

CREATION OF SELF EMPLOYMENT OPPORTUNITIES

EDUCATIONAL SECTOR REFORM

MANPOWER PLANNING
 GOVERNMENT POLICIES
• DIRECT EMPLOYMENT
By providing employment in various government
administrative departments
INDIRECT EMPLOYMENT
Trickle down effect
EMPLOYMENT GENERATION PROGRAMS
 CONCLUSION
• Growth of service sector
• Technological advancement – growth of SSI
and MNC
• Outsourcing
• Work from home
• Growth of informal sector
• Jobless growth