The document discusses employment trends in India. It notes that while India's GDP has grown over the past 60 years, this growth has not generated sufficient new jobs, resulting in jobless growth. As a result, informal employment has increased, comprising 94% of the workforce. The rural workforce makes up three-fourths of total employment but faces issues like disguised and seasonal unemployment. Government policies and employment programs aim to boost rural employment and tackle unemployment.

1. Employment :
Growth,
Informalisation and
other Issues
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

2. introduction
• Studying about working people enables us to
understand the quality and nature of
employment in our country and help us to
plan human resources accordingly to the
nature of job opportunities.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

3. Basic concepts
• Gross Domestic Product
• Economic activities
• Workers
 hired workers = regular workers, casual
workers.
Self – employed
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

4. Hired vs self- employed
Hired workers Self – employed workers
Employed by others Use their self-employed resources
These work on resources provided by
others.
These use their own resources to get
employment.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

5. Regular and casual workers
Regular workers
Casual workers
These are hired on permanent basis These are not hired on permanent basis
These are entitled to social security
benefits from their employers.
These are not entitled to social security
benefits from their employers
These have strong bargaining power as
they can form trade unions.
These have weak bargaining power as
they can not form trade unions
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

6. Labour force
• It include employed and unemployed workers
• All persons in the age group between 15 years
and 60 years
• Labour force does not include
 children below 15 years
Handicapped persons
All those who are not willing and not available
for work.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

7. Workforce
• Those persons who are working.
• Persons who are engaged in economic
activities
• Workforce does not include
 unemployed persons even though they are
willing and available for work.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

8. Relation between labour and
workforce
• Labour force = workforce + unemployed
persons
• Workforce = number of persons working
• Unemployed persons = labour force –
workforce
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

9. • During 2011 – 12 , India had about a 473 million
strong workforce.
• The rural workers constitute about three-fourth
of this 473 million.
• About 70 per cent are men and the rest are
women.
• Women workers account for one-third of the
rural workforce
• In urban areas, they are just one-fifth of the
workforce.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

10. Employment
• It is an activity which enables a person to
earn.
• If all those who are willing and able to work,
are working at the existing wage rate, the
situation is called full employment.
• If some of these do not get work , the
situation is called unemploymant.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

11. Rate of unemployment
Rate No. of unemployed persons
of =----------------------------- x 100
Unemployment labour force
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

12. Participation of people in employment
worker population ratio
• Worker population ratio is an indicator which is used for
analyzing the employment situation in the country
• The ratio helps us to know the proportion of population
that is actively contributing to the production of goods and
services of a country.
• If this ratio is higher, it means that engagement of people is
greater.
• If this ratio is medium or low, it means that a very high
proportion of its population is not involved directly in
economic activities.
• Worker population ratio is calculated by dividing the total
number of workers in India by the population in India and
then multiplying by 100
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

13. Worker population ratio in India
2011-12
Worker population ratio.
sex total Rural urban
men 54.4 54.3 54.6
Women
Total
21.9
38.6
24.8
39.9
14.7
35.5
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

14. • Male distribution of employment
Self employed 51%
Regular salaried employees 20%
Casual wage labourers 29%
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

15. Distribution of employment by Gender
male
self employed
regular employed
casual wage
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

16. • Female distribution of employment
Self employed 56%
Regular salaried employees 13%
Casual wages labourers 31%
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

17. female
self employed
regular employed
casual wage
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

18. • Distribution of employment by region
urban rural
Self employed 43% 56%
Regular salaried
employees
42% 9%
Casual wage labourers 15% 35%
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

19. Distribution of employment by region
0%
10%
20%
30%
40%
50%
60%
urban rural
self employed r
regular salaried
casual wage
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

20. Distribution of workforce in sectors
Industrial category Place of
residence
sex total
Rural urban men women
Primary sector 64.1 6.7 43.6 62.8 48.9
Secondary sector 20.4 35.0 25.9 20.0 24.3
Tertiary sector 15.5 58.3 30.5 17.2 26.8
total 100 100 100 100 100
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

21. Growth and changing structure of
employment
• There are two main development indicators
• Growth of employment and growth of GDP
• Since 60 years of planned development, India aimed at
expansion of economy through increase in national product
and employment.
• During the period of 1950-2010, GDP of India grew
positively and was higher than the growth of employment.
• However there was always flections in the growth of GDP.
But employment grew at a stable rate
• In the Indian economy, we have been able to produce more
goods and services but without generating employment.
This phenomenon is referred to as Jobless growth
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

22. Growth of employment and GDP
0
1
2
3
4
5
6
7
8
9
10
GDP
Employment
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

23. Changing structure of employment
(Sector wise)
Sector 1972-73 1983 1993-94 1999-2000 2011-12
Primary 74.3 68.6 64 60.4 48.9
Secondary 10.9 11.5 16 15.8 24.3
Services 14.8 16.9 20 23.8 26.8
total 100 100 100 100 100
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

24. Changing structure of employment
(Status wise)
status 1072-73 1983 1993-94 1999-2000 2011-2012
Self-
employed
61.4 57.3 54.6 52.6 52.0
Regular
salaried
employees
15.4 13.8 13.6 14.6 18.0
Casual wage
labourers
23.2 28.9 31.8 32.8 30.0
total 100 100 100 100 100
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

25. Informalisation of indian workforce
Formal sector (Organised) Informal sector(Unorganised)
All the public and private enterprises
which employ 10 or more than 10
workers
All the private sector entrprises which
employ less than 10 workers
Employees working in this sector are
known as formal workers
Employees working in this sector are
known as informal workers
The workers are entitled to social security The workers are not entitle to social
security benefits
The workers in this sector can form trade
unions
The workers in this sector cannot form
trade unions
6% of the total workforce is employed in
the formal sector ,2009-10
94% of the total workforce is employed in
informal sector.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

26. Unemployment
• Unemployment is a situation when all those who are
able and willing to work, fail to get jobs at the
prevailing wages rates .
• Unemployment measures involuntary idleness of
individuals.
• It means wastage of valuable service of human
resources of the country,
• Who are permanently incapable and all those who may
not be willing to work are not counted while measuring
unemployment. Also persons below 15 years of age
and persons above 60 years of age are not counted,
while measuring the size of unemployment.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

27. Unemployment
rural
unemployment
Urban
unemployment
Other type
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

28. Rural
Disguised
unemployment
Seasonal
unemployment
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

29. Urban
unemployment
Educated
unemployment
Industrial
unemployment
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

30. • Other types of unemployment
Open unemployemnt
Underemployment
Structural unemployment
Frictional unemployment
Cyclical unemployment
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

31. Causes of increasing unemployment
• Population explosion
• Low rate of economic development
• Low level of development in agriculture
• Low level of industrial development
• Lack of vocational and technical education
• Low level of capital formation
• Immobility of labour
• Joint family system
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

32. Effects of unemployment
•Economic effect
Fall in production and income
Low level of saving and investent
Poverty
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

33. •Social effects
Low level of standard of living
Inequality in the distribution of income
Social unrest
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

34. Suggestions to solve
• Increase in growth of GDP
• Population control
• Development of agricultural sector
• Educational sector reforms
• Financial help to self- employed workers
• Infrastructural development
• Implementation of employment programmes
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

35. Government policies
• Direct effects
Government employs people in various
departments for administrative purposes.
People working in government schools ,
hospitals , offices are some of the examples of
direct employment by government
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

36. • Indirect effects
When production of goods and services by
government enterprises increases, than
private enterprise which provide raw materials
to government enterprises
It will generate employment opportunities in
private sector too because of increase in their
sales and output
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

37. Special measures
• Rural Employment Generation Programme (Self
employment)
• Prime Minister’s Rozgar Yojana (Self employment)
• Swarna Jayanti Shahari Rozgar YoJana (Self
employment and wage employement )
• Swarnajayanti Gram Swarozgar Yojana (Self
employment)
• Sampoorna Grameen Rozgar Yojana(Wage employment
• Mahatma Gandhi National Rural Employment
Guarantee Act, 2005 (Wage employment )
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,

38. Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,