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Identify the feature of the unorganised sector.
[2011 (T-1)]
  • a)
    Rules and regulations are followed
  • b)
    Workers enjoy security of employment
  • c)
    Employment is not secure
  • d)
    It follows some formal processes and procedures
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Identify the feature of the unorganised sector.[2011 (T-1)]a)Rules and...
Feature of the Unorganised Sector:

Unorganised sector refers to the segment of the economy where enterprises and workers operate outside the purview of formal rules and regulations. The feature of the unorganised sector is:


  • Employment is not secure: In the unorganised sector, workers do not enjoy job security. They often work on a temporary or informal basis, without any formal employment contracts.


Unlike the organised sector, where workers have access to several benefits and protections, the unorganised sector lacks such provisions. Workers in the unorganised sector are vulnerable to exploitation, low wages, and poor working conditions.

It is important to note that the other options mentioned in the question are not applicable to the unorganised sector:


  • Rules and regulations are followed: The unorganised sector operates outside the formal rules and regulations, making it less regulated and subject to compliance.

  • Workers enjoy security of employment: As mentioned earlier, employment in the unorganised sector is not secure, and workers often face uncertainty regarding their jobs.

  • It follows some formal processes and procedures: The unorganised sector is characterized by its informality, where formal processes and procedures are not typically followed.


Therefore, the correct answer is option C: Employment is not secure.
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Most Upvoted Answer
Identify the feature of the unorganised sector.[2011 (T-1)]a)Rules and...
Unorganised sector refers to the part of the economy where workers do not have formal contracts, benefits, or social security. It is characterized by the absence of rules, regulations, and formal processes. The feature of the unorganised sector, as stated in the question, is that employment is not secured.

Explanation:
The unorganised sector is primarily made up of small-scale enterprises, self-employed workers, and casual laborers. These workers typically work in low-paying jobs with little job security and no employment benefits. Here is a detailed explanation of why option 'C' is the correct answer:

1. Lack of formal contracts: In the unorganised sector, workers often do not have formal employment contracts. They may be hired on a daily or piece-rate basis, without any guarantee of regular work. This lack of formal contracts makes employment in the sector insecure.

2. Absence of social security: Workers in the unorganised sector do not enjoy the security of employment benefits such as health insurance, pension, or provident fund. Without these social security measures, they are vulnerable to financial hardships in case of illness, injury, or old age.

3. Low wages: The unorganised sector is known for its low wages. Workers are often paid below the minimum wage, and there is no fixed income or regular salary. This further contributes to the insecurity of employment in this sector.

4. Lack of job protection: Workers in the unorganised sector are easily replaceable. Employers can hire and fire workers without following any formal procedures or regulations. This lack of job protection further adds to the insecurity of employment in the sector.

5. Exploitation: Due to the absence of rules and regulations, workers in the unorganised sector are often subjected to exploitation by their employers. They may be forced to work long hours, in unsafe conditions, and without any legal recourse.

Overall, the unorganised sector is characterized by the absence of job security, formal contracts, social security benefits, and protection against exploitation. These factors contribute to the vulnerability and insecurity of employment in this sector.
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