Employment: Growth & Issues

A worker is an individual who is involved in any economic activity. This includes:

• Persons who are paid wages or salaries for their work.
• Self-employed persons who run their own business.
• Those who are temporarily absent from work due to illness or injury.
• Helpers who support the main workers (even if unpaid).

The Worker-Population Ratio is an indicator used to analyse the employment situation in the country. It is defined as the proportion of the population that is actively contributing to the production of goods and services.
$$ \text{Worker-Population Ratio} = \frac{\text{Total Number of Workers}}{\text{Total Population}} \times 100 $$

No, they are not considered workers in economics.
Reason: While they may generate income for themselves, their activities are illegal or social evils and do not contribute to the Gross National Product (GNP) of the country. Economic activities must be legal and productive to be counted as work.

Odd man out: (iii) A cashier in Mother Dairy.
Reason: The cashier is a Regular Salaried Employee in the organized sector. All others are either self-employed (saloon owner, cobbler, tuition master, transport operator) or casual wage labourers (construction worker) in the informal sector.

Service sector.

Informal sector establishment. (Establishments with less than 10 hired workers are typically classified as informal).

Yes, Raj can be considered a worker.
Reason: In economics, those who help the main workers in family farms or businesses are counted as workers, even if they are not paid cash wages. They contribute to the total output of the farm.

• Economic Necessity: Rural families are often poorer, forcing women to work in fields to support family income.
• Nature of Work: Agricultural work allows women to work on family farms without formal qualifications, whereas urban jobs often require specific skills or education.
• Urban Income Effect: In urban areas, if the male members earn high incomes, women may choose (or be encouraged) to stay at home, reducing the reported female workforce participation.

Yes, she is considered a worker regarding her work in the shop.
Reason: While her household chores are non-economic activities, her contribution to the cloth shop (an economic activity) helps generate income for the family. She is an unpaid family worker.

Odd man out: (iv) Shoeshine boy.
Reason: The shoeshine boy is purely Self-Employed (Own Account Worker).
In contrast:

• The rickshaw puller works under an owner (hired).
• The mechanic shop worker is a hired employee.
• The mason is often a casual wage labourer hired by contractors.

Analysis:

• Rural Dominance: The data shows a massive concentration of the workforce in rural areas (195 million) compared to urban areas (39 million). This indicates the economy was heavily agrarian (approx 83% workforce in villages).
• Female Participation: The ratio of female workers is much higher in rural areas (69 million) than in urban areas (7 million). Rural women actively participate in farming, whereas urban women face social barriers or lack opportunities matching their skills.

Formula: $\text{No. of Workers} = \frac{\text{Population} \times \text{Worker-Population Ratio}}{100}$

1. Urban Workforce:
Population = 28.52 crores, Ratio = 33.7
$$ \text{Workers} = \frac{28.52 \times 33.7}{100} \approx \mathbf{9.61 \text{ crores}} $$
2. Total Workforce:
Population = 100.40 crores, Ratio = 39.5
$$ \text{Workers} = \frac{100.40 \times 39.5}{100} \approx \mathbf{39.66 \text{ crores}} $$

Regular salaried jobs require:

• Organized Infrastructure: Offices, factories, and institutions (schools, hospitals) which are concentrated in cities.
• Skills and Literacy: Urban workers are generally more literate and skilled, fitting the requirements of formal jobs.
• Nature of Economy: The rural economy is agrarian (seasonal/self-employed), while the urban economy is service/industrial (regular shifts).

• Lack of Skills: A higher illiteracy rate among women limits their access to skilled formal jobs.
• Social Constraints: Mobility issues and family responsibilities often prevent women from taking up full-time regular 9-to-5 jobs.
• Discrimination: Employers sometimes prefer men for long-term permanent roles.

Recent trends show:

• Primary Sector Decline: The share of agriculture has fallen from over 70% to around 45-50%, though it remains the largest employer.
• Service Sector Growth: The tertiary sector has absorbed a significant portion of the workforce, driven by IT, trade, and transport.
• Secondary Sector Stagnation: The industrial sector has failed to generate employment at the expected pace, leading to a direct jump from agriculture to services.

This phenomenon is often termed “Jobless Growth”.
While India’s GDP contribution shifted dramatically from agriculture to services between 1950-2010, the workforce shift was much slower. Agriculture contributed less to GDP but still employed nearly half the population, indicating that the new growth sectors (services/industry) were capital-intensive, not labour-intensive.

Yes, absolutely.

Reasons:

• Social Security: Formal sector workers get PF, pension, and insurance, which informal workers lack.
• Job Security: They are protected by labour laws and cannot be fired without notice.
• Better Wages: Formal jobs usually offer higher and more regular wages than casual informal work.

Status: He is Underemployed (Visible Underemployment).
Reason: He is willing and able to work for a full day but gets work for only a fraction of the time. Technically, he is employed (as he works 2 hours), but effectively he is under-utilized.
Typical Jobs: Casual wage labour (like distributing flyers, loading/unloading), part-time domestic help, or seasonal farm work.

I would suggest Non-Farm Activities:

• Agro-processing units: Making pickles, jams, or jaggery from local produce.
• Animal Husbandry: Poultry or dairy farming.
• Infrastructure Projects: Building village roads, check dams, or community centers (using schemes like MNREGA).
• Vocational Training Centers: To train youth in repairing mobiles, cycles, or tailoring.

A casual wage labourer is a worker who is casually engaged in others’ farms or enterprises and gets remuneration (wages) for the work done. They do not have job security, regular income, or social security benefits (e.g., construction workers).

A worker is likely in the informal sector if:

• The enterprise has less than 10 workers.
• They do not receive social security benefits like Provident Fund (PF) or gratuity.
• They do not have protection from trade unions or labour laws.
• Their income is fluctuating and job is temporary.