On the basis of employment conditions, activities in the economy are classified as organised and unorganised. The organised sector offers job security and employment benefits, while the unorganised sector is marked by low wages and lack of job security.

Sectors are classified as organized or unorganized based on the level of formalization and regulation within the sector. Some factors that determine whether a sector is organized include:

1. Legal and regulatory framework: Organized sectors are characterized by well-defined legal and regulatory frameworks that govern their operations. These frameworks ensure compliance with labor laws, consumer protection laws, taxation regulations, and other relevant regulations.

2. Formalization of businesses: Organized sectors consist of businesses that are formally registered and have a legal existence. These businesses maintain proper books of accounts, follow standard accounting practices, and pay taxes.

3. Labor practices: Organized sectors typically have well-defined labor practices, including contracts, minimum wages, social security benefits, and protection against discrimination and exploitation. They often have labor unions or associations that negotiate on behalf of workers.

4. Market structure: Organized sectors generally have a more organized market structure with established players, clear market entry barriers, and standardized pricing mechanisms. They often have professional associations or industry bodies that regulate market practices and ensure fair competition.

5. Technology and infrastructure: Organized sectors often have better access to technology, modern infrastructure, and support services. They may also benefit from economies of scale, allowing them to operate more efficiently and competitively.

It is important to note that the classification of sectors as organized or unorganized can vary across different countries and regions, depending on the specific context and level of development.