Employment: Growth, Information And Other IssuesClass 11 Indian Economic Development NCERT Solutions
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Q1EXERCISES
Who is a worker?
Solution
A worker is any person who is engaged in an economic activity that contributes to the country's Gross National Product (GNP). This includes not only those who are paid by an employer, but also those who are self-employed. The definition also covers individuals who may be temporarily absent from work due to factors like illness, injury, festivals, or bad weather, as well as those who assist the main workers in their activities. The key criterion is participation in a productive economic activity, regardless of the capacity.
Q2EXERCISES
Define worker-population ratio.
Solution
The worker-population ratio is an indicator used to analyze the employment situation in a country. It is defined as the proportion of the total population that is actively engaged in productive economic activities. It is calculated by dividing the total number of workers in a country by the total population and then multiplying the result by 100.
Formula:
Worker-Population Ratio = (Total Number of Workers / Total Population) × 100
This ratio helps in understanding the extent of the population's involvement in generating goods and services for the country.
Q3EXERCISES
Are the following workers - a beggar, a thief, a smuggler, a gambler? Why?
Solution
No, a beggar, a thief, a smuggler, and a gambler are not considered workers.
Reason:
A worker is defined as a person engaged in an economic activity that contributes to the Gross National Product (GNP). The activities of these individuals do not result in the production of any goods or services that add to the national income. Their activities are not considered productive from an economic standpoint. Therefore, as they do not contribute to the GNP, they do not fit the definition of a worker.
Q4EXERCISES
Find the odd man out (i) owner of a saloon (ii) a cobbler (iii) a cashier in Mother Dairy or Milk Cooperative Society of your area (iv) a tuition master (v) transport operator (vi) construction worker.
Solution
The odd one out is (iii) a cashier in Mother Dairy or Milk Cooperative Society of your area.
Reason:
The classification is based on the employment status:
- (i) Owner of a saloon: Self-employed
- (ii) A cobbler: Self-employed
- (iv) A tuition master: Self-employed
- (v) Transport operator: Typically self-employed (if they own the vehicle)
- (vi) Construction worker: Casual wage labourer
- (iii) A cashier in Mother Dairy: Regular salaried employee
While the construction worker is also different, the cashier represents a regular, salaried job, often in a more organized setting, which makes it the most distinct category compared to the others who are predominantly self-employed or casual wage labourers, often working in the informal sector.
Q5EXERCISES
The newly emerging jobs are found mostly in the __________ sector (service/manufacturing).
Solution
The newly emerging jobs are found mostly in the service sector.
Q6EXERCISES
An establishement with four hired workers is known as __________ (formal/informal) sector establishment.
Solution
An establishment with four hired workers is known as informal sector establishment.
Q7EXERCISES
Raj is going to school. When he is not in school, you will find him working in his farm. Can you consider him as a worker? Why?
Solution
Yes, Raj can be considered a worker.
Reason:
The definition of a worker includes all individuals engaged in economic activities, even if they are not paid. This also includes those who help the main workers. Working on a farm is a productive economic activity that contributes to the agricultural output of the country and thus to the GNP. Since Raj contributes his labour to the farm, he is considered a worker, despite being a student primarily.
Q8EXERCISES
Compared to urban women, more rural women are found working. Why?
Solution
More rural women are found working compared to urban women due to a combination of economic, social, and educational factors:
- Economic Necessity: Rural households often have limited resources and lower incomes. This economic pressure necessitates that more family members, including women, engage in work to earn a living.
- Nature of Work: In rural areas, a significant portion of work is in agriculture, where women actively participate in various farm activities alongside men. This work is often integrated with their household duties.
- Lower Educational Attainment: In rural areas, women may have fewer opportunities for higher education or may discontinue their studies early to join the workforce. In contrast, a considerable section of urban women pursue higher education, delaying their entry into employment.
- Social Norms: In some urban families, particularly where men have high incomes, there is a tendency to discourage female members from taking up jobs. This is less prevalent in rural areas where women's contribution to farm work is essential.
Q9EXERCISES
Meena is a housewife. Besides taking care of household chores, she works in the cloth shop which is owned and operated by her husband. Can she be considered as a worker? Why?
Solution
Yes, Meena can be considered a worker.
Reason:
A worker is someone who contributes to an economic activity. The definition of a worker includes all those who help the main workers in their enterprises, even if they are not paid a wage. Meena's work in the cloth shop is a direct contribution to the business's operations and its income generation. This is a productive economic activity that adds to the national income. Therefore, she is classified as a worker.
Q10EXERCISES
Find the odd man out (i) rickshaw puller who works under a rickshaw owner (ii) mason (iii) mechanic shop worker (iv) shoeshine boy.
Solution
The odd one out is (iv) shoeshine boy.
Reason:
The classification is based on employment status:
- (i) Rickshaw puller who works under a rickshaw owner: Hired worker, likely a casual wage labourer.
- (ii) Mason: Typically a hired casual wage labourer.
- (iii) Mechanic shop worker: A hired worker, either casual or regular.
- (iv) Shoeshine boy: Self-employed. He owns and operates his own small enterprise.
The first three are examples of hired workers, whereas the shoeshine boy is self-employed.
Q11EXERCISES
The following table shows distribution of workforce in India for the year 1972-73. Analyse it and give reasons for the nature of workforce distribution. You will notice that the data is pertaining to the situation in India about 50 years ago!
Place of Residence Workforce (in millions) Male Rural 125 Urban 32
Solution
Analysis of the Data:
- Dominance of Rural Workforce: The rural workforce (195 million) was five times larger than the urban workforce (39 million). This shows that the vast majority of workers resided and worked in rural areas.
- Gender Disparity: There was a significant gender gap in the workforce. Men constituted a much larger portion of the workforce in both rural (125 million men vs. 69 million women) and urban areas (32 million men vs. 7 million women).
- Higher Female Participation in Rural Areas: While women's participation was lower than men's everywhere, the proportion of women in the rural workforce was considerably higher than in the urban workforce.
Reasons for this Distribution:
- Agrarian Economy: In 1972-73, India's economy was predominantly agricultural. Since agriculture is a rural-based activity, a large majority of the population lived in villages and depended on farming for their livelihood, explaining the large rural workforce.
- Limited Industrialization: The industrial and service sectors, which are concentrated in urban areas, were not as developed at the time. This limited the employment opportunities available in cities, resulting in a smaller urban workforce.
- Social Norms and Women's Role: Social norms often restricted women from working outside the home, especially in urban areas. In rural areas, women were heavily involved in agriculture and allied activities, often as unpaid family helpers, which explains their higher participation numbers there compared to urban settings.
Q12EXERCISES
The following table shows the population and worker population ratio for India in 1999-2000. Can you estimate the workforce (urban and total) for India?
Region Estimates of Population (in crores) Worker Population Ratio Estimated No. of Workers (in crores) Rural 71.88 41.9 (71.88/100) * 41.9 = 30.12Urban 28.52 33.7 ? Total 100.40 39.5 ?
(71.88/100) * 41.9 = 30.12Solution
Yes, the workforce for urban and total can be estimated using the formula:
Estimated Workers = (Population × Worker Population Ratio) / 100
1. Estimation of Urban Workforce:
- Urban Population = 28.52 crores
- Urban Worker Population Ratio = 33.7
- Estimated Urban Workers = (28.52 × 33.7) / 100 = 9.61124 crores.
- Therefore, the estimated urban workforce is approximately 9.61 crores.
2. Estimation of Total Workforce:
- Total Population = 100.40 crores
- Total Worker Population Ratio = 39.5
- Estimated Total Workers = (100.40 × 39.5) / 100 = 39.658 crores.
- Therefore, the estimated total workforce is approximately 39.66 crores.
The completed table is:
| Region | Estimates of Population (in crores) | Worker Population Ratio | Estimated No. of Workers (in crores) |
|---|---|---|---|
| Rural | 71.88 | 41.9 | 30.12 |
| Urban | 28.52 | 33.7 | 9.61 |
| Total | 100.40 | 39.5 | 39.66 |
Q13EXERCISES
Why are regular salaried employees more in urban areas than in rural areas?
Solution
Regular salaried employees are more prevalent in urban areas than in rural areas due to the fundamental differences in the economic structures of these regions:
- Nature of Enterprises: Urban areas are hubs for industries, large companies, government offices, banks, schools, and hospitals. These enterprises require a stable workforce and hire people on a regular basis, offering fixed salaries and benefits.
- Dominance of Agriculture in Rural Areas: The rural economy is largely based on agriculture. This sector is characterized by self-employment (farmers cultivating their own land) and casual wage labour (labourers hired for seasonal work). There are very few opportunities for regular salaried jobs in agriculture.
- Concentration of Formal Sector: The formal or organised sector, which is the primary provider of regular salaried employment, is concentrated in cities and towns. Rural areas have a predominance of informal sector activities.
Q14EXERCISES
Why are less women found in regular salaried employment?
Solution
Fewer women are found in regular salaried employment due to a combination of factors:
- Lower Access to Education and Skills: Many regular salaried jobs require specific educational qualifications and skills. Historically, women have had lower access to education and vocational training compared to men, limiting their eligibility for such positions.
- Social and Domestic Responsibilities: Traditional societal norms often place the primary responsibility for household chores and childcare on women. The fixed timings and lack of flexibility in regular salaried jobs make it difficult for many women to balance work with these responsibilities.
- Constraints on Mobility: Regular salaried jobs may require commuting or relocation, which can be a constraint for many women due to family or safety concerns.
- Preference for Self-Employment and Casual Work: A large proportion of working women are engaged in self-employment (especially in agriculture) or casual wage work, which may offer greater flexibility to manage household duties, even though they provide less security and lower income.
Q15EXERCISES
Analyse the recent trends in sectoral distribution of workforce in India.
Solution
Based on the data provided in the chapter (from 1972-73 to 2017-18), the recent trends in the sectoral distribution of the workforce in India show a significant structural shift:
-
Decline of the Primary Sector: There has been a substantial decline in the proportion of the workforce engaged in the primary sector (mainly agriculture). Its share fell from 74.3% in 1972-73 to 46.1% in 2017-18. While it has decreased significantly, it still remains the largest employer for the Indian workforce.
-
Growth of the Secondary Sector: The share of the secondary sector (manufacturing, construction, etc.) has more than doubled, increasing from 10.9% to 24.9% during the same period. This indicates a move towards industrialization.
-
Growth of the Service Sector: The service or tertiary sector has also seen a significant increase in its share of the workforce, rising from 14.8% to 29.0%. This sector is showing a promising future for employment in India.
In conclusion, the trend indicates a gradual transformation of the Indian economy, moving away from an agrarian base towards industry and services. This shift from farm work to non-farm work is a typical sign of economic development.
Q16EXERCISES
Compared to the 1970s, there has hardly been any change in the distribution of workforce across various industries. Comment.
Solution
This statement is incorrect. The data presented in the chapter (Table 6.3) clearly shows that there has been a substantial and significant change in the distribution of the workforce across various sectors since the 1970s.
- Primary Sector: The share of the workforce dependent on the primary sector has seen a massive decline, from 74.3% in 1972-73 to 46.1% in 2017-18. This is a reduction of nearly 28 percentage points, which is a very significant change, not a minor one.
- Secondary and Service Sectors: Conversely, the shares of the secondary and service sectors have increased considerably. The secondary sector's share rose from 10.9% to 24.9%, and the service sector's share grew from 14.8% to 29.0%. Both sectors have roughly doubled their share of the workforce.
Therefore, the claim that there has been 'hardly any change' is factually wrong. The Indian economy has undergone a clear structural transformation, with a notable shift of labour from agricultural to non-agricultural sectors over the last five decades.
Q17EXERCISES
Do you think that during 1950-2010 employment generated in the country is commensurate with the growth of GDP in India? How?
Solution
No, the employment generated in the country during 1950-2010 was not commensurate with the growth of GDP in India.
How:
- Disparity in Growth Rates: The chapter states that during this period, India's Gross Domestic Product (GDP) grew positively and at a much higher rate than employment growth. While the GDP experienced fluctuations, its overall growth was significant.
- Low Employment Growth: Employment growth remained low, at a rate of not more than 2 per cent. In the late 1990s, employment growth even started to decline.
- Widening Gap: This led to a widening gap between the growth of GDP and the growth of employment. The economy was able to produce more goods and services without creating a proportional number of new jobs.
- Jobless Growth: This phenomenon, where the economy expands but employment opportunities do not increase at the same pace, is referred to by scholars as "jobless growth."
Q18EXERCISES
Is it necessary to generate employment in the formal sector rather than in the informal sector? Why?
Solution
Yes, it is necessary to generate more employment in the formal sector rather than the informal sector for several important reasons:
- Job Security and Better Wages: Formal sector jobs provide workers with greater job security and generally offer higher wages compared to the informal sector. Workers are protected by labour laws.
- Social Security Benefits: Workers in the formal sector are entitled to social security benefits such as provident fund, gratuity, pension, health insurance, and paid leave. These benefits provide a crucial safety net for workers and their families, which is absent in the informal sector.
- Better Working Conditions: The formal sector is regulated by the government, which ensures better and safer working conditions. Informal sector work is often characterized by poor, unhealthy, or unsafe environments.
- Right to Organise: Formal sector workers have the right to form trade unions and bargain with employers for better wages and working conditions. This empowers workers and protects their rights.
- Poverty Alleviation: Shifting workers from the vulnerable, low-income informal sector to the secure, better-paying formal sector is a key strategy for poverty reduction and improving the overall standard of living, which has been a primary goal of India's development planning.
Q19EXERCISES
Victor is able to get work only for two hours in a day. Rest of the day, he is looking for work. Is he unemployed? Why? What kind of jobs could persons like Victor be doing?
Solution
Is he unemployed? Why?
Yes, according to the definition cited in the chapter, Victor would be considered unemployed or underemployed. The chapter mentions that "Economists define unemployed person as one who is not able to get employment of even one hour in half a day." Since Victor works only two hours a day and is actively looking for more work, he is not fully employed. His economic condition is likely precarious, and he is not utilizing his full labour potential. This situation is a form of underemployment.
What kind of jobs could persons like Victor be doing?
Persons like Victor are typically engaged in casual wage labour in the informal sector. These jobs are characterized by their instability and lack of a full day's guaranteed work. Examples include:
- A daily wage construction labourer waiting at a designated spot for work.
- A headload worker (coolie) at a market or railway station.
- A street vendor selling goods for a few hours.
- A casual farm labourer who gets work only for a specific task that lasts a couple of hours.
Q20EXERCISES
You are residing in a village. If you are asked to advice the village panchayat, what kinds of activities would you suggest for the improvement of your village which would also generate employment.
Solution
If I were to advise the village panchayat, I would suggest the following activities for village improvement and employment generation, based on the chapter's discussion on government initiatives:
-
Community Asset Creation: Initiate public works projects under schemes like MGNREGA. This could include:
- Construction and maintenance of village roads.
- Desilting of local ponds and irrigation canals to improve water availability for agriculture.
- Construction of community buildings like a panchayat ghar, a primary health sub-centre, or an Anganwadi. These activities would provide direct wage employment to unskilled labourers in the village.
-
Support for Allied Agricultural Activities: Encourage diversification beyond traditional farming to provide year-round income. The panchayat can facilitate:
- Setting up small poultry farms or dairy units.
- Promoting horticulture (growing fruits and vegetables).
- Developing fisheries in community ponds.
-
Wasteland Development and Afforestation: Undertake projects to develop common wastelands or degraded lands by planting trees. This would not only generate employment but also improve the local environment.
-
Improving Basic Amenities: Launch projects for the construction of houses for the poor and sanitation facilities (toilets). This would create employment for masons and labourers and also improve the quality of life in the village.
-
Promoting Local Handicrafts: If the village has traditional skills like weaving, pottery, or handicrafts, the panchayat could help form self-help groups (SHGs) to produce and market these goods, creating self-employment opportunities.
Q21EXERCISES
Who is a casual wage labourer?
Solution
A casual wage labourer is a worker who is engaged by others on a casual or day-to-day basis and receives remuneration (wages) for the work performed. These workers do not have a regular, permanent job with a single employer. They lack job security, social security benefits, and regular income. Examples provided in the chapter include construction workers and labourers working on others' farms. They constitute a significant and highly vulnerable part of India's workforce.
Q22EXERCISES
How will you know whether a worker is working in the informal sector?
Solution
You can determine if a worker is in the informal sector by examining their place of work and the conditions of their employment:
-
Type of Establishment: A worker is in the informal sector if they work in any private sector establishment that employs fewer than 10 hired workers. All public sector establishments are part of the formal sector.
-
Nature of Employment: The informal sector includes:
- Millions of farmers and agricultural labourers.
- Owners of small enterprises and people working in them.
- Self-employed individuals who do not have any hired workers (e.g., street vendors, cobblers).
- All non-farm casual wage labourers, such as construction workers and headload workers.
-
Absence of Social Security Benefits: A key indicator is the lack of social security benefits. Informal sector workers do not receive benefits like provident fund, gratuity, pension, or paid leave.
-
Lack of Protection by Labour Laws: Workers in the informal sector are not protected by most labour laws. They can be dismissed from their jobs without any reason or compensation.