Industrialization and

Labour problems

Annangi Surya Kartikeya
Sap id: 8101200093
Roll no; A053
Industrialization
 Industrialization is the period of social and economic change that transforms a human group
from an agrarian society into an industrial society. This involves an extensive re-organization of
an economy for the purpose of manufacturing. Historically industrialization is associated with
increase of polluting industries heavily dependent on fossil fuels. 
 Industrialization in India as in any other country implies the growth of a factory system with
employers and wage earners in varying circumstances and with varying characteristics. 
Causes
 At the turn of the century machines were beginning to take a stronger footing in the economy,
which drove costs down. Always trying to maximize profits, employers saw fit to lower wages
for two main reasons. Machines were making the production process cheaper meaning wages
took up a bigger percentage of costs, and when times were particularly tough, it made sense to
cut wages to stay in business.
 People were not eliminated completely but there was a significant job less. This led to lower
wages in the long run because fixed costs decreased (with increased technology) so employers
saw fit to cut wage expenses for this now partially expendable labour force.
The Labour problem
 "The Labour Problem" is an economics term widely used toward the turn of the twentieth
century with various applications. It has been defined in many ways, such as "the problem of
improving the conditions of employment of the wage earning classes."
 It encompasses the difficulties faced by wage-earners and employers whom began to cut wages
for various reasons including increased technology, desire for lower costs or to stay in business.
It was a nationwide problem that spanned nearly all industries and helped contribute to modern
business conditions still seen today.
Labour Problems in India
 Illiteracy
 Unemployment
 Lack of Labour Reforms
 Industrial Backwardness
 Age issues:
 The community
 The household