CLASS 9

ECONOMICS
CHAPTER NO.2

PEOPLE AS RESOURCE
 CONTENTS
1. Introduction

2. Human as Resource

3. Stories of Sakal & Vilas

4. Economic Activities

5. Quality of Population

6. Unemployment

7. Employment Scenario
 INTRODUCTION

• 'People as Resource' is a way to relate to the working

people of a country with respect to their current
functional skills and abilities.

• Human resources is not a liability but an asset to the

economy.

• The population becomes human capital when

investment in the form of education, training, and health
care is made.

• Human capital, in essence, is the stock of skill and

productive knowledge embodied within it.
Human capital
 HUMAN RESOURCE
• People who are part of the workforce are called human
resource.
• By contributing in productivity, the human resource plays a
significant role in the economy of a country.
• Any other resource becomes useful only because of the
input by the human resource.
• Investment in human capital yields a return like investment
in other resources.
• Investment in human capital is done through education,
training and healthcare.
• A person with better education usually earns better than
an uneducated person.
• Moreover, a healthy person is more productive.
 EDUCATION

Investment in
Human
resource

TRAINING HEALTHCARE
 GREEN REVOLUTION
• Input of greater knowledge
in the form of improved
production technologies
rapidly increase the
productivity of scarce land
resources
Vs. IT REVOLUTION
• Human capital has come to
acquire a higher position
than that of material, plant
and machinery
 DEVELOPED
HUMAN
RESOURCE

Superior to
Higher other
Income resources

Advantages
to society
STORIES OF SAKAL & VILAS

Sakal Vilas
• Educated • Uneducated
• Got a job • Forced to sell fish
• Healthy • Patient of arthritis
• Skilled • Unskilled
• Higher income • Lower income
• Higher productivity • Lower productivity
• Educated parents understand the value of education
and hence invest in their child’s education to secure a
better future for the child.

• Educated parents also take extra care of the health and

nutrition of their child. This creates a virtuous cycle of
creating a better human capital.

• Uneducated parents are unable to invest on education

and healthcare of their children. This creates a vicious
cycle in which the coming generation is often forced to
remain poor.
 ECONOMIC ACTIVITIES

Economic activities can be categorized into three types ;

ECONOMIC
ACTIVITIES

Primary Secondary Tertiary

activities activities activities
1. Primary Activities:
Economic activities which are related to
agriculture, poultry farming, fishing,
horticulture, animal husbandry, mining,
quarrying, etc. are called primary activities.
Natural resources are just extracted in
primary activities.
2. Secondary Activities:

• Manufacturing and quarrying is

included in the secondary sector.
• Natural resources are properly modified
in secondary activity.
3. Tertiary Activities:
• It consists of all service occupations
and help in the development of
primary and secondary sectors.
• These activities add value to the
national income.
• Also known as economic activities
• Example: Transport, communication,
trade, education, banking, etc.
 MARKET ACTIVITIES
When some product or service is produced to be
sold in the market, it is called market activity.
 NON MARKET ACTIVITIES

• When some product or service is

produced for self consumption, it
is called non-market activity.

• If a farmer produces just enough

to meet his family needs, then his
activity is a non-market activity.

• Similarly, the work of a housewife

is a non-market activity; because
she is working for the benefit of
her family members.
 Why are women employed in low paid work?

• When women enter the labour market, they are paid for
their work.
• Their earnings are calculated on the basis of education
and ability, much like that of their male counterpart.
• Most women are under-educated and have low skills
training, and therefore women are paid low compared to
men.
• Most women do work where there is no job security.
Less Income More Income Less Income More Income
 QUALITY Of POPULATION

 Literacy rate, health and skills determine the quality of a

population.
 Illiterate and unhealthy population can be a liability for the
economy.
 Literate and healthy population can be made into an asset
for the economy.
 Literate and healthy population contributes towards GDP of
a country.
 EDUCATION

• Education defines the literacy level and skill level of a

person.
• It also helps in enriching the culture of the society.
• Presence of educated persons in the society indirectly
benefits the illiterate persons as well.
• Government has taken various steps to spread education
among the people.
• Government strives to provide universal access to education.
• It also makes various plans to increase the retention of
students. Special emphasis is given on girl’s education.
Literacy Rates in India
 Navodaya Vidyalayas
• Jawahar Navodaya Vidyalayas
(JNVs) are a system of alternate
schools for gifted students in India.
• They are run by Navodaya Vidyalaya
Samiti, New Delhi, under the Ministry
of Human Resource Development,
Department of Education,
Government of India.
• JNVs are fully residential and co-educational
schools affiliated to CBSE, New Delhi, with classes
from VI-XII class.
• JNVs are specifically tasked with finding talented
children in rural areas of India and providing
them with good quality education.
• JNVs exist all over India.
• There are approximately 598 JNVs across India
(one school per district)
 Budgetary Estimate

• The plan outlay on education in the first plan was Rs. 151
crore. It has increased to Rs.43,825 crore in the tenth plan. The
expenditure on education was 0.64% of the GDP in 1950-51
and has increased to 3.98% of the GDP in 2002-03.

• Due to constant efforts, the literacy rate has grown from 18% in
1951 to more than 70% in 2011.

• Literacy rate is higher among males compared to among

females.

• Kerala is a state with more than 90% literacy, while some states
have a very low literacy level.
 SARVA SHIKSHA ABHIYAN
Sarva Shiksha Abhiyan (SSA), is an Indian Government
programme aimed at the universalisation of elementary
education "in a time bound manner", as mandated by the 86th
amendment to the Constitution of India making free and
compulsory education to children of ages 6–14 (estimated to be
205 million in number in 2001) a fundamental right. The
programme was pioneered by Atal Bihari Vajpayee.
 PRESENT GOALS OF
SARVA SHIKSHA ABHIYAN
Its goals of 2015 were to:

• Open new schools in areas which do not have them and

to expand existing school infrastructures and
maintenance.

• Address inadequate teacher numbers, and provide

training a development for existing teachers.

• Provide quality elementary education including life skills with

a special focus on the education of girls and children with
special needs as well as computer education
 MID-DAY MEAL SCHEME
• Government provides Mid-Day Meal in government schools so
that children of poor people can attend the school.
• Objectives:
1. To encourage attendance & retention of children
2. Improve their nutritional status.
3. Aims at increasing the literacy rate.
• Mid-day Meal has helped many children from the poor family to
attend school.
• The Tenth Plan has focused on increasing the enrolment in
higher education from 6% to 9%.
• The strategy is to increase access, quality and adoption of
state-specific curriculum to motivate enrolment in higher
education.
• Vocational courses are also offered and use of Information
Technology is being maximized to attain the goal.
• The Tenth Plan also focuses on distant education,
convergence of formal, non- formal and IT education.
 HEALTH
• A healthy person can fully realize his potential and can be an
asset for the economy.

• An unhealthy person shall not be able to realize his potential

and can be a liability for the economy. The national health
policy of India is aimed towards improving access to health
services and improving nutrition; especially among the
underprivileged classes.

Liability Asset
 GOVT. HEALTH SYSTEM

• The government health system is composed of many tiers

of hospitals. The Primary Health Centres (PHC) are the
bottom of this tier, and provide general medical care to
rural people.

• This is followed by Community Health Centers in bigger

Tehsils or Block level towns.

• The District Hospitals are at district level.

• Further, Medical colleges are present in major cities where

doctors of all specialties are present.
 UNEMPLOYMENT

 When a person is actively seeking a

job but is unable to get employed,
he is called an unemployed person.

 People in the working age (15 to 59

years) only can be termed
unemployed if any one of them is
without a gainful employment.

 Additionally, if a person voluntarily

does not want to work he cannot
be termed as unemployed.
 Unemployment

Urban Rural

Educated Seasonal Disguised

 Educated Unemployed

 Very high in urban areas.

 Even highly educated youths; like
graduates and postgraduates; are
unable to find a job.
 Many analysts say that it is
because of demand supply gap.
 While many technically qualified
people are unemployed, there are
many jobs remaining vacant
because of lack of proper training
of the individuals.
 Faulty education system, mass output, preference for white collar
jobs, lack of employable skills and dwindling formal salaried jobs
are mainly responsible for unemployment among educated
youths in India.
 Seasonal Unemployment

• This type of unemployment is more prevalent in rural

areas.

• People dependent on agriculture usually face this.

• The farming cycle is season based.

• There are certain months which are quite busy for a farm
worker.

• There are many other months when a farm worker is

without a work.
 Hidden/disguised Unemployment
• This type of unemployment is also more prevalent in rural
areas.

• To understand this, let us take the example of a family with 8

working members. All of them are working on their farm. The
size of the farm makes it possible to be efficiently managed
by 5 persons only. The extra three persons are not
contributing towards any growth in productivity. They are
working because they have no other gainful employment.

• Their potential could have given better results if utilized

elsewhere.

• Similar situation can also be seen in some family owned

shops where all the family members may be working in the
same shop but not adding substantially to the output.
 Effects of Unemployment
 Wastage of manpower resource.

 Increases economic overload.

 Unemployment can be emotionally draining on the

unemployed person.

 It can be a financial and emotional drain on his family

members.

 A large number of unemployed people is ultimately a

liability for the society.

 High rate of unemployment can also increase the crime rate.

 EMPLOYMENT SCENARIO
 Agriculture is the most labour absorbing sector of the
economy.
 In recent years, there has been a decline in the
dependence of agriculture partly because of disguised
unemployment, as discussed earlier.
 Some of the surplus labour in agriculture has moved to
either the secondary or the tertiary sectors.
 Small scale industry is the most labour absorbing in
secondary sector.
 In case of tertiary
sector, various new
services like
biotechnology, IT
are now appearing.
Self employment comes under the
primary sector
THANK YOU