CBSE Class 11 Economics Employment Notes Set 02

EMPLOYMENT AND UNEMPLOYMENT

• Some Basic Concepts
• Size of Workforce in India
• Rate of Participation in India
• Self-employed and Hired Workers in India
• Occupational Structure or Distribution of Workforce by Industry
• Jobless Growth
• Casualisation and Informalisation of Workforce
• Rural and Urban Unemployment

I. SOME BASIC CONCEPTS

Question. What is Unemployment?
Answer: Unemployment refers to a situation when people are willing to work at the existing wage rate, and are able to work, but are not getting work. It should be noted with emphasis that such people who are not willing to work at the existing wage rate are not considered as unemployed.

Question. Who is a Worker?
Answer: A worker is an individual who is engaged in some production activity. A worker, or an individual engaged in production activity, contributes to GDP by rendering his services.

Self-employed and Hired Workers

Workers (or those in employment) may be classified as: (1) self-employed, and (2) hired.

(1) Self-employed Workers: These are those workers who are engaged in their own business or own profession. Example: A farmer working on his own farm, or an entrepreneur working in his own factory.

(2) Hired Workers: These are those workers who work for others; they render their services to others and as a reward, get wages/salaries. Or, may be they are paid in kind. Example: A proof-reader working in a publication house, or a teacher working in a school.

Casual and Regular Workers

Hired workers may further be categorised as: (i) casual workers, and (ii) regular workers.

(i) Casual Workers: These are the daily wagers. They are not hired by their employers on regular basis. They are not given social security benefits, like provident fund, gratuity or pension.

(ii) Regular Workers: These are on permanent pay-roll of their employers. They are entitled to all social security benefits including pension, gratuity and provident fund.

(iii) It is often found that causal workers are unskilled workers, like a worker working at the construction site. A regular worker, on the other hand, is usually a skilled worker, like an engineer working in a factory.

Types of Workers (Summary)

• Self-employed Workers: [These are the people working in their own business or profession. They earn profit as a reward for their service.]
• Hired Workers: [These are the people hired by others, and are paid wages/salaries as a reward for their services.]
  • Casual Workers: [These are like daily wagers, not on permanent rolls of the employer, and not entitled to social security benefits.]
  • Regular Workers: [These are on permanent rolls of their employer and are entitled to social security benefits.]

Labour Supply, Labour Force and Workforce

Labour supply and labour force are different concepts.

(i) Labour supply refers to the amount of labour that the workers are willing to offer corresponding to a particular wage rate. You may be able to work 10 hours a day, but willing to work only for 6 hours a day at a particular wage. Labour supply, thus, is measured in terms of man-hours of work (or man-days, considering 8 man hours equal to one man-day). It is always estimated in relation to wage rate.

(ii) Labour force, on the other hand, refers to the number of workers actually working or willing to work. It is not related to wage rate.

Question. Distinguish between Labour Supply and Labour Force.
Answer:
Labour Supply:
(i) It refers to supply of labour corresponding to different wage rates. Supply of labour is measured in terms of man-days of work and is always related to wage rate.
(ii) Supply of labour can increase or decrease even when the number of workers remains constant. Because the supply of labour is measured in terms of man-days or person-days: one person-day referring to 8 hours of work.
Labour Force:
(i) It refers to the number of persons actually working or willing to work. It is not related to wage rate.
(ii) Because it is measured in terms of the number of persons (not in terms of person-days), size of labour force increases or decreases only when the number of persons actually working or willing to work increases or decreases.

(iii) Workforce refers to the number of persons actually working, and does not account for those who are willing to work (but not working). Thus,
\( Workforce = Labour\ force - Number\ of\ persons\ not\ working\ but\ are\ willing\ to\ work \)

This brings us to the estimation of unemployment (number of persons unemployed), as under:
\( Number\ of\ Persons\ Unemployed = Labour\ force - Workforce. \)

Related to this are the concepts of rate of unemployment and participation rate. These are estimated as under:
\( Rate\ of\ Unemployment = \frac{Number\ of\ persons\ unemployed}{Size\ of\ labour\ force} \times 100 \)
\( Participation\ Rate = \frac{Total\ workforce}{Total\ population} \times 100 \)

It refers to the percentage of population actually working.

WHY DO PEOPLE WORK AND WHY SHOULD WE STUDY ABOUT WORKING PEOPLE?

Three factors explain why do people work:

(i) People work to earn a living. It is essential for existence in a system of mutual interdependences.

(ii) Employment infuses in us a sense of self-esteem, and brings to the fore our sense of self-worth.

(iii) Employment contributes to GDP of the nation, and contributing to GDP gives us a sense of global pride because growth of GDP implies growth of the nation.

Four factors explain why studying about working people (or studying about employment) is significant:

(i) Studying about employment offers insights into the quality and quantity of our human resource or human capital, which is an important determinant of economic growth.

(ii) Employment study helps analyse the significance of different sectors (Primary, Secondary and Tertiary Sectors) in the growth process of the country. We come to know which sector employs how much and contributes how much towards GDP.

(iii) It helps analyse many social issues such as social security of the workers, work environment, exploitation of workers, etc.

(iv) It offers inputs for manpower planning. Understanding the nature and extent of existing employment, we can plan for our future requirement of manpower across different sectors of the economy.

2. SIZE OF WORKFORCE IN INDIA

Here are some important facts:

(i) India has a workforce of nearly 40 crore of persons.

(ii) About 70 per cent of the workforce comprises of male workers; only 30 per cent are female workers.

(iii) Nearly 70 per cent of the workforce is found in rural areas; urban workforce is only 30 per cent of the total.

(iv) Female workforce (out of the total) in rural areas is nearly 41.8 per cent, while it is only 35.31 per cent in urban areas.

Question. Why is the bulk of our Workforce Rural-based?
Answer: This is simply because bulk of the jobs are in rural areas. However, this does not mean the bulk of our GDP is derived from the rural economy. Implying that more people are engaged in farming and allied activities, but contributing less to GDP. This means low productivity of the workers in rural areas. Low productivity implies low earnings, which is why there is widespread poverty in rural areas. Employing nearly 50 per cent of workforce, the rural economy in India is contributing less than 20 per cent to GDP.

Question. Why is the Percentage of Female Workers Low, and Lower Still in Urban Areas?
Answer: This is because of the following reasons:
(i) Female education in India is still a far cry, implying low opportunities for jobs.
(ii) Among most families in urban areas, job work for women is still governed by family decisions rather than the individual's own decision. Implying that even the available opportunities are not actually utilised.
(iii) Higher employment among women in rural areas is owing to widespread rural poverty. Female workers in rural areas are largely engaged in low paid and less productive jobs just to add to their family income. Many of them are given wages in terms of grains during the harvesting season, the season when they find most jobs.
Note: Low employment among women is a sign of social and economic backwardness. Social backwardness arises because job work for women (outside their homes) is often considered as a social taboo.

3. RATE OF PARTICIPATION IN INDIA

It refers to participation of people in production activity, and is measured as a ratio of workforce to total population of the country. Statistical facts for 2017-18:

(i) Rate of participation for the urban areas is about 33.9 per cent.

(ii) Rate of participation for the rural areas is about 35 per cent.

(iii) In urban areas, rate of participation is about 53 per cent for men and 14.2 per cent for women.

(iv) In rural areas, rate of participation is about 51.7 per cent for men and 17.5 per cent for women.

(v) Overall rate of participation in the country is about 34.7 per cent.

Question. What are the key observations relating to the rate of participation in India?
Answer:
(1) High Dependency Ratio: Overall rate of participation in the country is not very high, implying not many people are engaged in production activity. It points to a high dependency ratio in the country.
(2) High Rate of Participation, but Low Level of Productivity in Rural Areas: Rate of participation is higher in rural areas compared with urban areas. Implying that larger percentage of population is engaged in production activity in rural areas. But, given the fact that contribution of rural economy to GDP is lower than that of urban economy, higher rate of participation in rural areas only points to lower productivity, lower level of income and greater poverty in rural India.
(3) High Rate of Participation for Women in Rural Areas: Rate of participation for women is higher in rural areas compared with urban areas. In rural areas, poverty compels women to avoid education and seek employment. Thus, employment (even without education) is a priority. This leads to the cycle: Entry into jobs without education
\( \implies \) Less productive jobs
\( \implies \) Low wage rate
\( \implies \) Higher rate of participation to make a sustainable living.

Question. What factors lead to the Under-estimation of Women Workers in the Country?
Answer: (i) Women rendering household services as housewives are not deemed as workers. Because (a) they are not paid for it, and (b) it is difficult to ascertain market value of the services rendered by the housewives.
(ii) Women rendering services on the family farms in rural areas and in the family business in the urban areas are often not treated as workers, largely because of the convention of not considering unpaid women as workers, even when unpaid men working on family farms or in family business are considered as employed and therefore as workers.

4. SELF-EMPLOYED AND HIRED WORKERS IN INDIA

The percentage distribution of workers (as Self-employed and Hired) according to Region for 2017-18 is as follows:

• Urban Workers: Hired (61.7%), Self-employed (38.3%)
• Rural Workers: Hired (42.2%), Self-employed (57.8%)

Self-employment is higher in rural areas compared to urban areas because:

• (i) In urban areas, people look for skilled jobs in offices and factories while in rural areas, family farms are the most attractive means of employment.
• (ii) In rural areas, non-farm job opportunities are limited. Accordingly, people generally do not show preference to acquire skill and training for non-farm occupations. They prefer to stay on family farms and fields as self-employed.

Question. Discuss the gender-wise distribution of workers as 'self-employed' and 'hired'.
Answer: As per 2017-18 data:
- Male: Self-employed (52.3%), Hired (47.7%)
- Female: Self-employed (51.9%), Hired (48.1%)
Among men, self-employment has become slightly more important than wage-employment. Among women, percentage of wage-employment is a bit higher than that among men. This is because women in rural areas, owing to their low level of education but high compulsion for jobs, are ready to work even at low wage. However, self-employment among women is also significant because women in rural areas find ample opportunities in traditional jobs like spinning, weaving, dyeing and bleaching.

5. OCCUPATIONAL STRUCTURE OR DISTRIBUTION OF WORKFORCE BY INDUSTRY

The distribution of workforce across primary, secondary and tertiary sectors is called occupational structure.

• Primary sector includes agriculture, forestry and logging, fishing, mining and quarrying.
• Secondary sector includes manufacturing, construction, electricity, gas and water supply.
• Tertiary sector includes trade, transport and storage, and services (like banking, insurance, etc.).

Question. What does the percentage distribution of workforce by industry (2017-18) reveal?
Answer: The data shows:
- Primary Sector: 43.8%
- Secondary Sector: 24.7%
- Tertiary Sector: 31.5%
Observations:
(i) As high as 43.8 per cent of our workforce is engaged in primary sector, dominated by farming.
(ii) Tertiary sector accounts for 31.5 per cent of employment, while the secondary sector offers employment to only 24.7 per cent.
Conclusions:
(i) Heavy dependence on primary sector (for making a living) is a sign of backwardness, as productivity level is very low.
(ii) Secondary and tertiary sectors have failed to generate ample job opportunities.
(iii) Secondary sector lagging behind the tertiary sector points to the fact that industrialisation has failed to take-off to become the leading sector of growth.

Question. Describe the distribution of Rural-Urban workforce across different sectors (2017-18).
Answer:
- Rural Workforce: Primary (58.5%), Secondary (19.5%), Tertiary (22.0%)
- Urban Workforce: Primary (7.8%), Secondary (28.9%), Tertiary (63.3%)
Observations:
(i) While those living in urban areas are engaged largely in secondary and tertiary sectors, those in the rural areas find primary sector as their preferred source of employment.
(ii) Tertiary sector is taking a lead over secondary sector as a source of employment in urban areas.
(iii) In India, services (trade, commerce, banking, etc.) are developing faster than manufacturing. This is due to globalisation and increased quality of life consciousness in urban areas.

Question. Discuss the distribution of Male-Female workforce across different sectors.
Answer: According to 2009-2010 data:
- Male: Primary (45%), Secondary (25.3%), Tertiary (19.1%), Others (10.6%)
- Female: Primary (57.3%), Secondary (18.9%), Tertiary (14.9%), Others (9.6%)
Facts:
(i) A huge percentage of female workforce (57.3 per cent) is engaged in primary sector because primary activities are confined largely to rural areas and mobility of women in rural areas is extremely low. They prefer jobs close to home.
(ii) Percentage of men finding employment in primary sector (45 per cent) is only next to that of women. It is explained in terms of lack of jobs outside agriculture in rural areas.

Change in Occupational Structure (1950-51 to 2017-18)

There has been only a modest change in occupational structure of the country:

• Primary Sector: 72.72% (1950-51) to 43.8% (2017-18)
• Secondary Sector: 10.02% (1950-51) to 24.7% (2017-18)
• Tertiary Sector: 17.26% (1950-51) to 31.5% (2017-18)

[Source: Report on Employment and Unemployment Survey (2017-18), Ministry of Labour and Employment]

Table 1 shows that between the period 1950-51 to 2017-18, percentage of workforce engaged in primary sector has declined from 72.72 per cent to 43.8 per cent. The percentage of workforce engaged in secondary sector has risen from 10.02 per cent to 24.7 per cent. And, the percentage of workforce engaged in tertiary sector has risen from 17.26 per cent to 31.5 per cent. Though the shift from primary to secondary sectors is noticeable, it is certainly not significant. The Indian economy continues to be viewed as agricultural economy, rather than an industrial economy.

Historical experience of the developed countries suggests a significant shift of workforce from primary sector to secondary and tertiary sectors of employment. Greater the shift, greater is the pace of growth and development. But the Indian experience presents only a dismal picture. The supremacy of primary sector as the principal source of employment remains unchallenged.

6. JOBLESS GROWTH

Economic growth occurs when GDP rises. It implies increase in the level of output.

Increase in the level of output is achieved in two ways:

(i) through greater employment, and/or

(ii) through better technology.

In poor countries like India where there is staggering unemployment, economic growth becomes meaningful only when it is associated with greater opportunities of employment, so that poverty is combated.

Unfortunately, Indian economy is experiencing GDP more through technology than the employment of labour. It is a situation of jobless growth.

• Jobless growth is a situation when the level of output in the economy tends to rise owing to innovative technology without any perceptible rise in the level of employment.
• Jobless growth leads to chronic unemployment, even when there is a rise in GDP.

Question. Why are we relying more on Technology, and less on Employment?
Answer: The reason is this: Our growth process is being increasingly hijacked by MNCs (multinational companies). These companies specialise in achieving high growth through efficient technology rather than through greater use of manpower. The obvious result is that growth is moving faster than the opportunities of employment. By and large, it is a 'jobless growth'.

We may end up this section by stating the fact that (during the period 1951-2000) while growth rate of GDP has risen from 3.6 per cent to 8 per cent per annum, growth rate of employment has tended to slide down from 1.5 per cent to just about 1 per cent. The growing gulf between the two rates is an alarming sign for a country where jobless labour force has tended to swell over time.

7. CASUALISATION AND INFORMALISATION OF WORKFORCE

Casualisation

An interesting feature of our workforce is that it includes a large percentage of casual workers, and their number is trending up. Note the following facts in this regard:

(i) Percentage of casually-hired workers in total workforce has risen from 23 per cent in 1972-73 to 33 per cent in 1999-2000 and further to 39.3 per cent in 2009-2010. However, it slightly declined to 30.9 per cent in 2013-14. In 2017-18, it again declined to 24.9 per cent.

(ii) Percentage of self-employed workers has declined from 62 per cent in 1972-73 to 52 per cent in 1999-2000 and further to 44 per cent in 2009-2010. However, it again increased to 49.5 per cent in 2013-14. In 2017-18, it further increased to 52.2 per cent.

(iii) Percentage of regularly-hired workers in total workforce continues to hover around 15 per cent during the period 1972-73 to 1999-2000. It was 16.8 per cent in 2009-2010 and 22.8 per cent in 2017-18.

(iv) 3.7 per cent of employed persons were reported to be hired as contract workers in 2015-16.

Casualisation of workforce refers to a situation when the percentage of casually-hired workers in the total workforce tends to rise over time.

Question. Why should the workforce suffer an increasing incidence of casualisation?
Answer: The logic is simple, and runs like this:
(i) The bulk of self-employed workforce is found in rural areas.
(ii) People work on their farms and fields, not because everybody is gainfully employed, but simply because many of them are not getting non-farm jobs even when they wish to migrate.
(iii) They are employed on their farms only for the name-sake; in fact they are disguisedly unemployed.
(iv) Taking a chance for opportunities, these marginal workers tend to migrate to urban areas, and more often than not, they get employment only as casual workers, or as daily-wagers. This is the story of unskilled workers leading to casualisation of employment.

Even skilled workers in the urban areas are to struggle for regular jobs. This is owing to massive unemployment across all sectors of the economy. Unemployment is so huge that the bargaining power of the workers is significantly reduced. On the other hand, bargaining power of the employers is very high. They follow the principle of 'hire and fire'.

Informalisation

Employment may broadly be classified as: (1) Formal sector employment, and (2) Informal sector employment.

• Formal Sector: Formal sector refers to organised sector of the economy. It includes all government departments, public enterprises and private establishments which hire 10 or more workers. Those working in the organised sector are called 'formal workers'.
• Informal Sector: Informal sector refers to unorganised sector of the economy. It includes all such private enterprises which hire less than 10 workers, besides farming and self-employment ventures. Those working in the unorganised sector are called 'informal workers'.

From the viewpoint of employment status, the underlying difference between formal and informal sectors is that:

(i) Workers in the formal sector are entitled to social security benefits (such as provident fund, gratuity, pension, etc.) while workers in the informal sector are not.

(ii) While economic interest of the workers in formal sector is protected through various labour laws, there are hardly any protective laws for the informal sector (other than Minimum Wages Act).

(iii) To protect their economic interest, workers in the formal sector can form trade unions; no such unions exist in the informal sector.

(iv) Informal sector workers are highly vulnerable to uncertainties of the market. They are hired when the market sentiments are good and are fired when there is economic slowdown.

Formal Workers vs Informal Workers

• Formal Workers:
  • Work in organised sector of the economy.
  • Are entitled to social security benefits (like provident fund, gratuity, pension, etc.)
  • Can form trade unions.
  • Are protected by various labour laws against uncertainties of the market.
• Informal Workers:
  • Work in unorganised sector of the economy.
  • Are not entitled to social security benefits.
  • Cannot form trade unions.
  • Remain unprotected by labour laws, and are therefore, highly vulnerable to uncertainties of the market.

Informalisation of workforce is defined as a situation where percentage of workforce in the formal sector tends to decline and that in the informal sector tends to rise. A series of economic reforms were launched in 1991, with 'liberalisation, privatisation and globalisation' as their key elements. Consequently, there is a significant transformation from 'a controlled economy' to 'market economy'.

Presently, formal sector employment comes to merely 10 per cent of the total; 90 per cent of the workforce continues to be informal. This points to growing vulnerability of the workforce to uncertainties of the market economy. A staggering number of 40 crore workers working in informal or unorganised sector of the economy points to growing vulnerability of the workforce.

8. RURAL AND URBAN UNEMPLOYMENT

Classification of unemployment in India:

• Rural Unemployment:
  • Disguised Unemployment
  • Seasonal Unemployment
• Urban Unemployment:
  • Industrial Unemployment
  • Educated Unemployment

Rural Unemployment

(1) Disguised Unemployment: Disguised unemployment occurs when the number of workers engaged in a job is much more than actually required to accomplish it. If some of them are withdrawn from that job, total production will not fall. For example, if just two persons are required to cultivate a farm measuring one hectare but actually five persons are engaged there, then three persons are disguisedly unemployed.

Principal causes are:

• On account of joint family system, farming families continue to work on family land, no matter the actual number of workers far exceeds the required number.
• Per person holding size continues to shrink with the expansion of the family size.
• Lack of job opportunities outside agriculture compels the people to work on family farms.

(2) Seasonal Unemployment: It occurs simply because agriculture is a seasonal occupation. During off-season, often the farm workers are out of job. They have no work to do. It is estimated that a farmer who grows one crop in a year usually remains unemployed for 5 to 7 months. In rural areas, besides agriculture, there are many other seasonal activities like sugarcane crushing, brick kilns, etc.

Urban Unemployment

In urban areas, unemployed people are often registered with employment exchanges. Therefore, urban unemployment is more like open unemployment. Between 1961 and 2016, the number of unemployed registered in employment exchanges has increased more than thirteen-fold (from 32 lakh to 435 lakh).

(1) Industrial Unemployment: It includes those illiterate persons who are willing to work in industries, mining, transport, trade and construction activities, etc. Principal causes include:

• Rapid rise in population overtime.
• Concentration of industry in the urban areas leading to rural migration spillover.
• Reliance on labour-saving western technology.

(2) Educated Unemployment: Principal factors accounting for this are:

• Substantial increase in educated persons due to expansion of educational institutions.
• Education system in India is degree-oriented rather than job-oriented.
• Increase in employment opportunities has significantly lagged behind the increase in the size of educated labour force.

Question. Distinguish between Youth Unemployment and Women Unemployment.
Answer:
- Youth Unemployment: Implies unemployment among people in the age group of 15-29 years. Rate of unemployment is the highest in this class. It is a grave problem as it leads to frustration and potentially anti-social activities.
- Women Unemployment: Hardly 22 per cent of women are employed in the country; 78 per cent are busy with domestic chores. Social conservatism often prohibits women from going out for work, although the number of women job-seekers is increasing.

Common Types of Unemployment across Rural and Urban Areas

(1) Open Unemployment: Occurs when a worker is willing to work, and has the necessary ability to work, yet he does not get work. He remains unemployed for full time and is totally dependent on other family members.

(2) Structural Unemployment: Occurs due to structural changes in the economy.
(i) Changes in technology (old technocrats no longer needed).
(ii) Change in the pattern of demand (industries closed down).

(3) Underemployment: A situation in which a worker does not get a full time job.
(i) Visible Underemployment: People work lesser than the standard hours (e.g., 4 hours instead of 8).
(ii) Invisible Underemployment: People work full time but income is not proportionate to abilities (e.g., an MA degree-holder working as a peon).

(4) Frictional Unemployment: Occurs due to imperfections in the mobility of labour across different occupations (e.g., when a person leaves a job to move to another or due to marriage).

(5) Cyclical Unemployment: Occurs owing to cyclical fluctuations in the economy (Boom, Recession, Depression, Recovery).

Causes of Unemployment in India

(1) Slow Economic Growth: Growth fails to generate enough opportunities for the rising labour force.

(2) Rapid Growth of Population: One of the principal factors contributing to unemployment.

(3) Agriculture—A Seasonal Occupation: Characterised by idleness for 3-4 months. Disguised unemployment is estimated at nearly 15 per cent of the total working population in agriculture.

(4) Lack of Irrigation Facilities: Scant facilities cover only 44% of area, making mono-cropping a compulsion.

(5) Joint Family System: Encourages survival on joint income without work, leading to disguised unemployment.

(6) Decay of Cottage and Small Industries: British regime policies and post-independence focus on large industry hit self-employment.

(7) Low Savings and Investment: Capital has not been optimally used; focus on capital-intensive large-scale industries.

(8) Limited Mobility of Labour: Reluctance to move due to language, religion, and family constraints.

Economic and Social Consequences of Unemployment

(1) Economic Consequences:

(i) Non-utilisation of Manpower: Social wastage.

(ii) Loss of Output: Potential contribution to output is lost.

(iii) Low Capital Formation: Unemployed only consume; they do not save or invest.

(iv) Low Productivity: Disguised unemployment leads to low output per worker/hectare.

(2) Social Consequences:

(i) Low Quality of Life: Perpetuates suffering.

(ii) Greater Inequality: Growth does not occur with social justice.

(iii) Social Unrest: Contributes to terrorism and self-desperation.

(iv) Class Struggle: Divides society into 'haves' and 'have-nots'.

Suggestions to Solve the Problem of Unemployment in India

(1) Increase in Production: Essential to increase production in agriculture and industrial sectors.

(2) Increase in Productivity: Productivity (implying efficiency) of labour must improve to generate demand.

(3) High Rate of Capital Formation: Notably, capital-output ratio should be kept low. These days it is 4.3. It means, to produce goods worth Rs. 1, capital worth Rs. 4.3 is invested.

(4) Help to Self-employed Persons: Around 52.2 per cent of people are self-employed. Government should provide facilities like irrigation, seeds, credit, etc.

(5) Educational Reforms: Admission should be limited to those with specific objectives; focus on vocational education.

(6) Technique of Production: Suit the needs of the country by encouraging labour-intensive technology.

(7) Cooperative Industries: Encouraging initiatives like textile mills on a cooperative basis (e.g., Kerala model where workers contributed Rs. 500 each).

(8) Importance to Employment Programmes in Plans: Focus on irrigation, roads, flood-control, and rural electrification.

Government Policy and Programmes

(i) Problem of unemployment is essentially the problem of poverty.
(ii) Latest step: National Rural Employment Guarantee Act (NREGA) providing 100 days of guaranteed wage employment to those below poverty line.
(iii) New Economic Policy (NEP) 1991 curtailed the direct role of government as a generator of employment due to privatisation.

Skill India, Make in India, Start-ups

(i) These are recently launched campaigns to generate employment opportunities.

(ii) They aim to actualise models of growth and development.

(iii) Hope for abundant opportunities through 'self-employment' once fully operational.

Power Points & Revision Window

• Unemployment: A situation when people are willing and able to work at the existing wage rate but are not getting work.
• Worker: An individual in some employment to earn a living.
• Self-employed and Hired Workers:
  • Self-employed: Engaged in their own business/profession.
  • Hired: Work for a wage/salary.
• Size of Workforce: Approx. 40 crore persons; 70% male, 30% female.
• Participation Rate: \( \frac{Total\ Workforce}{Total\ Population} \times 100 \). India approx. 34.7%.
• Occupational Structure: Primary (43.8%), Secondary (24.7%), Tertiary (31.5%).
• Jobless Growth: GDP grows faster than opportunities for employment.
• Unemployment Types: Disguised, Seasonal (Rural); Industrial, Educated (Urban); Open, Structural, Underemployment, Frictional, Cyclical (Common).
• NREGA: Offering guaranteed employment to those in rural areas below poverty line.