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.