CBSE Class 11 Economics Employment Notes

Worker:

A worker is an individual who is in some employment to earn a living.

Need to do Work:

People work for the following reasons:
To earn money for survival
Employment provides feeling of self worth & self esteem
It helps in the development of the nation 

Types of Workers:

Self Employed: these are the people working in their own business or profession. They earn profit as a reward for their services.
Hired Workers: these are the people hired by others & are paid wages or salaries as a reward for their services.
o Casual Workers: these are like daily wagers, not on permanent rolls of the employer, & do not get social security benefits. E.g. construction workers.
o Regular Workers: these are hired on permanent basis & are entitled to social security benefits.

Important Terms:

GDP: Sum of total goods & services produced in an economy during an accounting year is known as GDP.
GNP: When we add our foreign earning to GDP, we get GNP.
Economic Activities: Those activities which contribute to the gross national product
Work Force: refers to the no. of actually working
Labor Supply: it refers to supply of labour corresponding to different wage rates
Labour Force: it refers to the no. of persons actually willing to work or working. It is not related to wage rate.
Labor Force = Workforce + No. of persons unemployed
 

Rate of Unemployment: No. of Unemployed persons/Labor Force X 100
Workforce Participation Ratio: Workforce/ Total Population X 100  It refers to the percentage of population actually participating in production activity. It is also known as worker population ratio.

Size of Workforce in India

Around 40% population in India comprise the workforce
70% of the workforce comprise of male workers because men are able to earn higher incomes, so families discourage female members from taking up jobs.
70% of the workforce is found in rural areas & only 30% in urban areas because bulk of the jobs is in rural areas. It implies maximum people are employed in farming & allied activities.
For every 100 urban females, only about 14 are engaged in some economic activities & this is 30 for every 100 women in rural areas. This is because, amongst most families in urban areas, job work for women is still considered forbidden. Higher employment among rural women is because of their poverty.

Self Employed & Hired Workers

42% workers are self employed & 58% are hired in urban areas.
56% workers are self employed & 44% are hired in rural areas. The reason is that in urban areas people look for skilled jobs in offices & factories while in rural areas, family farm are most attractive proposition of employment.
51% of the male workers are self employed & 49% are hired.
55% of the female workers are self employed & 45% are hired. Owing to family & social constraints, mobility of women workers in search of job is less compared to that of men workers.

Occupational Structure:

Primary sector includes agriculture & allied activities, mining & quarrying.
Secondary sector includes manufacturing & construction.
Tertiary sector includes trade, transport, storage & services.

As the economy develops, labor moves from primary sector towards industry & services sector. In this process, workers migrate from rural to urban areas. Finally, service sector expands & secondary sector starts loosing its share of employment. The related data are as follows:

Distribution by Industry: 60% in primary, 17% in secondary & 23% in tertiary sector.
Distribution by Area:

• Urban areas: Primary 10%, Secondary 31% & tertiary 59%
• Rural areas: Primary 77%, Secondary 11% & tertiary 12%

Distribution by Gender:

• Male workers: Primary 54%, secondary 18% & tertiary 28%
• Female workers: Primary 75%, secondary 12% & tertiary 13% In formalization of Indian Workforce

Casualization of Workforce: It refers to a situation when the percentage of casually hired workers in the  otal workforce tends to rise over time. It is a process of moving from self employment & regular salaried employment to casual wage works. In India, casualization of workforce has been increasing

 Informalization of Indian Workforce
Employment is broadly classified into two categories:

Formal Sector or Organized Sector
All the public sector units & those private sector units which employ more than 10 hired workers or more are called formal sector establishments.

Informal Sector or Unorganized Sector
All the other enterprises & workers working in those enterprises form the informal sector. It includes farmers, agricultural laborers, and owners of small enterprises & people working in them, self employed who does not have any hired workers & non farm casual wage laborers.

Unemployment: it refers to a situation where people who are able & willing to work do not get work to earn their means of living. 

Types of Unemployment:

Open Unemployment: it refers to a situation wherein worker is willing & able to work, but fails to get any productive job.
Structural Unemployment: it occurs due to the structural changes in the economy. It includes

• Changes in Technology
• Changes in the pattern of Demand

Under Employment: it is that situation in which a worker gets work for less time than the time he can work. It is of two types:

• Visible Under Employment: in this case, people get work for less than the normal hours of working.
• Invisible under employment: in this case people work full time but their income is very low or they have to do those jobs where they cannot make the full use of their abilities.

Frictional Unemployment: it occurs due to imperfections in the mobility of labor across different occupations.
Seasonal Unemployment: it occurs in case of those occupations which are seasonal in nature. In off season there is not much demand for labor. For e.g. agriculture, ice cream factories, woolen garments etc.
Disguised unemployment: in this type, more people are engaged in the work than the people required. The excess of labor which do not add to productivity are called disguised unemployed.

Govt. & Employment Generation
Efforts done by the govt. in generating employment can be classified into two categories as:

Direct Efforts: in this, govt. employs people in various departments for administrative purposes. It also runs industries, hotels, transport, companies, etc. to provide employment directly to the people.
Indirect Efforts: when output of goods & services from the govt. enterprises increase, then the output of private sector who supplies raw material to the govt. sector would also increase & hence increasing the demand for labor.

This is the indirect effort of generating employment by the govt.
Govt. has also started many poverty alleviation & employment generation programs. Some of these are:

NREGA
Food for Work Program
Prime Minister’s Rozgar Yajana
Rural Employment Generation Program

Important Notes for Class 11 Economics Chapter 7 Employment Growth Informalisation and Other Issues

Introduction

People do a variety of work. Some work on farms, in factories, banks, shops and many other workplaces; yet a few others work at home. Work at home includes not only traditional work but also modern jobs like programming work in the IT industry.
People work for ‘earning’ a living. Some people get, or have, money by inheriting it, not working for it.
Having recognised the importance of work, Mahatma Gandhi insisted upon education and training through a variety of works including craft.
It helps us to analyse the contribution made by different industries and sectors towards national income. It also helps us to address many social issues such as exploitation of marginalised sections of the society, child labour etc.

Self-Employed and Hired Workers

Workers who own and operate an enterprise to earn their livelihood are known as self-employed.
Casual wage labourers are casually engaged in others’ farms and, in return, get a remuneration for the work done
When a worker is engaged by someone or an enterprise and paid his or her wages on a regular basis, they are known as regular salaried employees.

Growth and Changing Structure Of Employment

There are two developmental indicators — growth of employment and GDP. Sixty years of planned development have been aimed at expansion of the economy through increase in national output and employment.
During the period 1950–2010, Gross Domestic Product (GDP) of India grew positively and was higher than the employment growth.
In the late 1990s: employment growth started declining and reached the level of growth that India had in the early stages of planning. During these years, we also find a widening gap between the growth of GDP and employment.
Distribution of workforce by industrial sectors shows substantial shift from farm work to non-farm work.
In 1972-73, about 74 per cent of workforce was engaged in primary sector and in 2011-12, this proportion has declined to about 50 per cent. Secondary and service sectors are showing promising future for the Indian workforce.
The distribution of workforce in different status indicates that over the last four decades (1972-2012), people have moved from self-employment and regular salaried employment to casual wage work.
Scholars call the process of moving from self-employment and regular salaried employment to casual wage work as casualisation of workforce.

Unemployment

NSSO defines unemployment as a situation in which all those who, owing to lack of work, are not working but either seek work through employment exchanges, intermediaries, friends or relatives or by making applications to prospective employers or express their willingness or availability for work under the prevailing condition of work and remunerations.
There are a variety of ways by which an unemployed person is identified. Economists define unemployed person as one who is not able to get employment of even one hour in half a day.
There are three sources of data on unemployment: Reports of Census of India, National Sample Survey
Organisation’s Reports of Employment and Unemployment Situation and Directorate General of
Employment and Training Data of Registration with Employment Exchanges.
Economists call unemployment prevailing in Indian farms as disguised unemployment.

What is disguised unemployment?
Suppose a farmer has four acres of land and he actually needs only two workers and himself to carry out various operations on his farm in a year, but if he employs five workers and his family members such as his wife and children, this situation is known as disguised unemployment.
When there is no work to do on farms, people go to urban areas and look for jobs. This kind of unemployment is known as seasonal unemployment. This is also a common form of unemployment prevailing in India.

Conclusion

There has been a change in the structure of workforce in India. Newly emerging jobs are found mostly in the service sector.
The expansion of the service sector and the advent of high technology now frequently permit a highly competitive existence for efficient small scale and often individual enterprises or specialist workers side by side with the multinationals.
Outsourcing of work is becoming a common practice.
The traditional notion of the modern factory or office, as a result, has been altering in such a manner that for many the home is becoming the workplace.
All of this change has not gone in favour of the individual worker. The nature of employment has become more informal with only limited availability of social security measures to the workers.
In the last two decades, there has been rapid growth in the gross domestic product, but without simultaneous increase in employment opportunities.
This has forced the government to take up initiatives in generating employment opportunities particularly in the rural areas.

Learning Objectives:-
1. Introduction

2. Basic Concepts
a. Meaning of worker
b. Labour force and work force
c. Meaning of employment
d. Wage employment
e. Regular workers(Regular Salaried employees)
f. Casual Workers

3. Participation of people in employment
a. Worker-population ration on the basis of region
b. Distribution of employment by gender
c. Distributions of employment by region
d. Distributions of employment in different sectors
e. Distributions of rural-urban employment in different sectors

4. Growth of employment and Gross Domestic Product(GDP)

5. Changing structure of employment
a. Casualization of work force.

6. Informalisation of Indian workforce
a. Formal or Organized sector.
b. Informal or unorganized sector.

Worker: A worker is an individual who is involved in some productive activities to earn a living.

Who and all included in workers?
It is not only people those who are paid workers also includes self-employed people like shopkeepers, barbers, cobblers etc.. Workers include all those people who are engaged in work whether for others (paid workers or self-employed)

Difference between labour force and work force?
Labour Force: All persons, who are working (who have a job) and though not working, are seeking and are available for work, are dram to be in the labour force.

Question. why are regular salaried employees more in urban areas than in rural areas?
Answer. Regular salaried employees are more in urban areas as considerable section of urban people are able to study in various educational institution and it enables them to look for an appropriate job to suit their qualifications and skills. However, in rural areas, most of the people are illiterate and lack skills, which are needed for regular Employment.

Question. What is meant by Employment?
Answer. Employment is an activity which enables a person to earn means of living.

Question. Why do people work?
Answer. People work for earning a living which helps them and their families to survive.

Question. Who all are included in labour force?
Answer. All persons, who are working (have job) and though not working, are seeking and are available for work, are deemed to be in the labour force.

Question. Who is worker?
Answer. A worker is an individual, who is involved in some productive activity, to earn a living.

Question. Are the following workers- a beggar, a thief, a smuggler, a gambler? Why?
Answer. No, They are not workers because they are not doing any productive activity.

Question. Compared to urban women, more rural women are found working. Why?
Answer. More rural women are found working because of their poor economic condition as compared to urban women.

Question. Why does rural work force migrate to urban areas during some part of the year?
Answer. people in rural areas are engaged mostly in agriculture, which is a seasonal activity. So, rural workforce migrates to urban areas during some part of the year.

Question. Who is a Casual Wage Labourer?
Answer. Workers who are not hired by their Employers on a regular or permanent basis (i.e. do not have job security) and do not get social security benefits, are termed as casual wage labour.

Question. Define jobless growth?
Answer. Jobless growth refers to a situation when the Economy is able to produce more goods and service without a proportionate increase in Employment opportunities.

Question. What is meant by seasonal unemployment?
Answer. Unemployment that occurs at certain seasons of the year is known as Seasonal unemployment.

Question. Give the meaning of disguised unemployment.
Answer. Disguised unemployment refers to a state in which more people are engaged in work than are really needed.

Question. Who are regular workers?
Answer. Workers who are hired by their employers on a permanent basis and also get social security benefits (like pension, provident fund, etc.) are higher in regular workers.

Question. Why is the Self – Employed work force higher in rural areas?
Answer. In case of rural areas, Self Employed Workers are greater as majority of rural people are engaged in farming on their own plots of land.

Question. What is meant by Casualisation of work force?
Answer. The process of moving from Self- Employment and regular salaried employment to casual wage work is known as Casualisation of Workforce.

Question. Name the two kinds of urban unemployment.
Answer.1. Industrial unemployment
2. Educated unemployment.

Question. What do you mean by Informal sector Establishment?
Answer. All those private enterprises which hire less than 10 workers are called Informal sectors.
Eg: Workers who work in farms, owners of Small Enterprises, Agriculture labourers. Here they do not get regular income. No protection or regulation by government can be dismissed at any time. Live in slums, use outdated technology, do not maintain accounts.

Question. What is meant by frictional unemployment?
Answer. Temporary unemployment, which exists during the period, wherein. Workers leave one role and join some other, are called frictional unemployment.
People those who are not working and are neither seeking nor available for work are consider to be outside the labour force.
Labour force = Person’s working + Persons seeking & available for work.
After 66 years & below 15 years not included labour force. A handicapped person not included. People those who are not interested not included. People are not available not included.

Question. What do you mean by industrial unemployment?
Answer. It refers to the unemployment among the illiterates who wish to work in industrial establishment

Question. What is meant by wage employment?
Answer. An arrangement in which a worker sells his labour and earns wages in return.

Question. what is meant by labour force participation rate?
Answer. The ratio of labour force to total participation is called labour force participation rate.

Question. What is information of workforce?
Answer. Informalisation of workforce refers to a situation whereby the proportion of workforce in the informal sector to total workforce increases.

Question. Men are found in greater proportion than women in regular salaried employment. Why?
Answer. Rural unemployment is of two types:-
1. Disguised unemployment
2. Seasonal unemployment

Question. What do you mean by full employment?
Answer. Full employment refers to a situation in which all the workers who are capable of working and willing to work get an Employment in prevailing wage rates.

Question. Why do we differentiate between Economic activity and production activity?
Answer. We differentiate between Economic activity and production activity to calculate the number of workers. People engaged only in production Economic activities are to be included in the category of workers.

Question. Give the meaning of self-employment.
Answer. An arrangement in which a worker used his own resources, to make a living is knowing as self-employment.

Question. Give the meaning of work force.
Answer. The number of persons, who are actually employed at a particular time are known as work force.

Question. Define worker – population ratio.
Answer. Worker- population ration is the percentage of total population engaged in work.

Question. What do you mean by formal sector establishment?
Answer. All the public enterprises and private establishments, which Employ 10 or more hired workers are called formal sector establishments.

Question. Give the meaning of educated unemployment.
Answer. Educated unemployment refers to the unemployment among the Educated people.

Work forces: The number persons who are actually employed at a particular time are known as work force.
- What is the labour force participation rate?
The ratio of labour force to total population is called labour force participation rate.
- How can we calculate number of unemployed people?
Unemployed people = labour force – Work force.
Meaning of Employment
Employment is an activity which enables a person to earn his means of living.
Full employment
Full employment is a situation in which all the workers who are capable of working and willing to work get an employment at a prevailing wage rate.
Self-employment
When the worker uses his own resources to work and make a living then we call it as Self Employment.

Question. What is worker population ratio? How do we calculate Worker population ratio? What is its use?
Answer. WPR refers to participation of people in the employment. It is measured by calculating
           Total number of workers in India
WPR = _________________________ x 100
           No. of work population In India
It helps in knowing the proportion of population that is actively contributing to the production of goods and services of a country.