Sectoral Classification of Workers

The classification of workers into organized and unorganized sectors is based on the degree of job security and the level of protection provided by the labor laws and regulations. Let's explore the characteristics of both sectors to understand why the correct answer is option 'A.'




Organized Sector


The organized sector refers to industries and enterprises that are well-structured, regulated, and follow specific labor laws. This sector comprises large-scale industries, government organizations, public sector undertakings, etc. Here are some key points regarding the organized sector:
- Job Security: Workers in the organized sector generally enjoy a higher level of job security. The labor laws protect their rights and provide safeguards against arbitrary termination.
- Employment Benefits: Employees in the organized sector are entitled to various employment benefits such as provident fund, medical facilities, pension schemes, gratuity, maternity benefits, etc.
- Collective Bargaining: Workers in the organized sector have the right to form trade unions and participate in collective bargaining for better working conditions, wages, and benefits.




Unorganized Sector


The unorganized sector comprises small-scale industries, self-employed individuals, casual laborers, daily wage workers, and workers in the informal economy. Here are some key points regarding the unorganized sector:
- Job Security: Workers in the unorganized sector often face insecurity due to the absence of formal contracts or legal protection. They are vulnerable to exploitation and can be easily terminated without any notice.
- Lack of Employment Benefits: The unorganized sector workers are deprived of employment benefits like provident fund, medical facilities, pension schemes, etc., which are available to organized sector workers.
- Limited Bargaining Power: Workers in the unorganized sector usually lack collective bargaining power and face challenges in demanding better working conditions, wages, and benefits.




Explanation of the Correct Answer


The correct answer to the given question is option 'A' - Organized sector. This is because workers in the organized sector generally enjoy greater job security compared to the unorganized sector. The organized sector offers employment benefits, legal protections, and the right to collective bargaining, making it a more secure and stable work environment.

By choosing option 'A,' it implies that most workers in the organized sector have a higher level of job security compared to those in the unorganized sector.