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Key Notes: Employment: Growth, Informalisation and other issues | Economics Class 12 - Commerce PDF Download

Introduction:

  • Worker is an individual participating in productive activities to earn a livelihood.
  • Economic activities include production, distribution, and consumption.
  • Labor migration involves the shift of workers from agriculture to industry and services.

Types of Workers:

  • Self-Employed:
    • Individuals own and operate their businesses.
    • Example: Farmer managing their farm.
    • Comprises over 50% of the workforce.
  • Hired Workers:
    • Receive wages or salaries from employers.
    • Two types:
    • Casual Workers:
      • Not employed regularly, often paid hourly/daily without social security.
    • Regular Workers (Salaried):
      • Employed by organizations regularly, receive fixed salaries.

Production Activity:

  • Actions to create goods and services generating income.

Distribution Activity:

  • Involves constructing, maintaining, and operating infrastructure (e.g., electricity, water).

Employment in Firms, Factories, and Offices:

  • Labor migration from rural to urban areas during economic development.
  • Three industrial divisions:
    • Primary sector: Agriculture, mining, etc.
    • Secondary sector: Manufacturing, construction, utilities.
    • Tertiary sector: Trade, services, transportation.

Jobless Growth:

  • Economic growth outpaces job creation, leading to unemployment.
  • Casualization of employment: Increase in temporary workers.
  • Informalization of employment: More workers in the informal sector.

Unemployment:

  • Occurs when willing but unable to secure employment.
  • Unemployment rate: Proportion of the labor force without jobs.

Types of Unemployment:

  • Rural unemployment: Seasonal and disguised.
  • Urban unemployment: Industrial, educated, and technological.

Causes of Unemployment:

  • Slow economic growth.
  • Rapid population growth.
  • Inadequate employment planning.
  • Over-reliance on foreign technology.

Government and Employment Generation:

  • National Rural Employment Guarantee Act, 2005: Provides 100 days of guaranteed paid employment in rural areas.
  • Government initiatives for job creation.
  • Federal and state governments play a crucial role.

Conclusion:

  • Shift in the workforce towards the service sector.
  • Growth in the service sector and technology enable small-scale enterprises.
  • Outsourcing and remote work practices.
  • Informalization of the workforce.
  • GDP growth doesn't match job opportunities.
  • Government initiatives to create rural employment opportunities.
The document Key Notes: Employment: Growth, Informalisation and other issues | Economics Class 12 - Commerce is a part of the Commerce Course Economics Class 12.
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FAQs on Key Notes: Employment: Growth, Informalisation and other issues - Economics Class 12 - Commerce

1. What is the current state of employment growth?
Ans. According to the article, employment growth is experiencing certain trends. While there has been an increase in employment opportunities, it is important to note that the growth is mainly in the informal sector. This means that more people are finding work in jobs that lack regular employment benefits and job security.
2. What is the concept of informalisation in employment?
Ans. Informalisation refers to the process of an increasing number of workers being employed in informal jobs or the informal sector. These jobs often lack formal employment protections such as minimum wages, social security benefits, and job stability. The article suggests that there is a significant informalisation of employment happening currently.
3. What are the issues associated with informalisation of employment?
Ans. The article highlights several issues related to the informalisation of employment. Some of these include the lack of job security, low wages, absence of social security benefits, and limited access to decent working conditions. Informal workers often face challenges in terms of earning a stable income and securing their livelihoods.
4. How does employment informalisation impact the economy?
Ans. The informalisation of employment can have both positive and negative impacts on the economy. While it can contribute to job creation and provide a source of income for individuals who would otherwise be unemployed, it also poses challenges. Informal jobs typically offer lower wages and limited productivity, which can hinder overall economic growth and lead to income inequality.
5. What measures can be taken to address the issues of informalisation in employment?
Ans. The article suggests several measures that can be taken to address the issues associated with informalisation of employment. These include implementing policies that promote formalization of jobs, improving access to social security benefits for informal workers, providing skill development and training programs, and creating a supportive environment for small and medium-sized enterprises to transition into the formal sector. Additionally, strengthening labor laws and enforcement mechanisms can help protect the rights and interests of informal workers.
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