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Meaning of Work

Important Facts

• People work in farms, factories, offices, shops and homes.
• Modern technology allows people to work from home.
• Work gives:
  • Income
  • Self-respect
  • Social identity
  • Contribution to national development

Economic Activities

Meaning

Economic activities are activities that contribute to Gross National Product (GNP).

Important Fact

All persons engaged in economic activities are called workers.

Workers Include

Category
Farmers
Factory workers
Shopkeepers
Self-employed persons
Casual labourers
Salaried employees

Workforce in India

Important Data

Indicator	Value
Workforce in India (2022–23)	About 545 million

Important Facts

• Majority of workforce lives in rural areas.
• Men form the majority of workforce.
• Women’s unpaid household work is often not counted as economic activity.

(NCERT Pages 94–95)

Meaning

Worker-population ratio refers to the proportion of population actively engaged in economic activities.

Worker-Population Ratio in India (2023–24)

Category	Total	Rural	Urban
Men	56.4	56.3	56.4
Women	30.7	34.8	20.7
Total	43.7	45.6	38.9

Important Facts

• Rural worker-population ratio is higher than urban ratio.
• Rural women participate more in employment than urban women.
• Women’s unpaid work is often not recognised.

(NCERT Pages 95–96)

Self-Employed Workers

Meaning

Workers who own and operate enterprises themselves are called self-employed workers.

Examples

Example
Shop owner
Farmer
Street vendor
Doctor
Lawyer

Casual Wage Labourers

Meaning

Workers employed on a daily or temporary basis are called casual wage labourers.

Examples

Example
Construction worker
Agricultural labourer
Brick kiln worker

Regular Salaried Employees

Meaning

Workers who receive regular salaries from employers are called regular salaried employees.

(NCERT Pages 96–98)

Employment Distribution by Gender

Category	Male Workers	Female Workers
Self-employed	54%	67%
Regular salaried	21%	16%
Casual labourers	25%	17%

Regional Employment Distribution

Category	Urban Workers	Rural Workers
Self-employed	40%	65%
Regular salaried	48%	13%
Casual labourers	12%	22%

(NCERT Page 97)

Employment in Firms, Factories and Offices (NCERT Pages 99–100)

These notes explain employment across sectors.

Industrial Sectors & Distribution

Major Sectors

Sector	Activities
Primary Sector	Agriculture, mining
Secondary Sector	Manufacturing, construction
Tertiary Sector	Trade, transport, services

Distribution of Workforce by Industry (2023–24)

Sector	Share
Primary Sector	46.1%
Secondary Sector	24.1%
Service Sector	29.8%

Important Facts

• Agriculture remains the largest employer.
• Service sector dominates urban employment.
• Women workers are concentrated mainly in primary sector.

(NCERT Pages 99–100)

Employment Growth

Important Facts

• GDP growth was higher than employment growth during 1950–2010.
• Employment growth remained below 2%.

Jobless Growth

Economic growth without corresponding growth in employment is called jobless growth.

(NCERT Pages 100–101)

Sectoral Shift in Employment

Important Data

Sector	1972–73	2023–24
Primary Sector	74.3%	46.1%
Secondary Sector	10.9%	24.1%
Service Sector	14.8%	29.8%

Important Facts

• Dependence on agriculture declined.
• Service sector employment increased rapidly.

(NCERT Pages 101–102)

Casualisation of Workforce (NCERT Page 102)

These notes explain casualisation.

Casualisation

Meaning

Shift from self-employment and regular salaried work towards casual wage labour is called casualisation of workforce.

Important Fact

Casual workers are highly vulnerable due to insecure employment.

(NCERT Page 102)

Formal Sector

Meaning

Enterprises employing 10 or more workers with legal protection and social security are called formal sector establishments.

Benefits

Benefit
Provident Fund
Pension
Gratuity
Maternity benefits
Job security

Informal Sector

Meaning

Enterprises with small scale operations and without social security benefits are called informal sector enterprises.

Important Facts

• Informal workers lack job security.
• Workers are dismissed without compensation.
• Technology is often outdated.

Important Data

Indicator	Value
Formal sector workers (2019–20)	About 59 million
Informal sector workers	About 476 million

(NCERT Pages 103–106)

Informalisation in Ahmedabad (NCERT Page 105)

These notes explain the Ahmedabad textile case.

Ahmedabad Textile Industry Case

• Textile mills closed during the 1980s.
• Thousands of workers lost jobs.
• Workers shifted to informal sector.
• Poverty, alcoholism and social problems increased.

Meaning

A situation where people willing to work cannot find employment.

Types of Unemployment

1. Open Unemployment

People actively searching for jobs but unable to find work.

2. Disguised Unemployment

More workers engaged than actually required.

3. Seasonal Unemployment

Employment available only during certain seasons.

(NCERT Pages 106–108)

Employment Generation Programmes

Important Facts

• Government creates employment directly and indirectly.
• Public sector enterprises generate jobs.
• Rural development programmes create wage employment.

MGNREGA

Full Form

Mahatma Gandhi National Rural Employment Guarantee Act, 2005

Important Features

Feature
Guarantees 100 days employment
Rural employment programme
Unskilled manual work
Wage employment

Important Areas Covered

Area
Rural roads
Drinking water
Housing
Sanitation
Community assets

(NCERT Pages 108–109)

Conclusion (NCERT Page 109)

These notes explain overall employment trends.

Important Facts

• Service sector employment is increasing.
• Outsourcing and work-from-home are increasing.
• Informal employment is expanding rapidly.
• Employment growth has not matched GDP growth.

(NCERT Page 109)

Term	Meaning
Worker	Person engaged in economic activity
Worker-population ratio	Ratio of workers to total population
Self-employed	Person operating own enterprise
Casual labourer	Daily wage worker
Jobless growth	GDP growth without employment growth
Formal sector	Organised sector with social security
Informal sector	Unorganised sector without security
Disguised unemployment	More workers than required
Seasonal unemployment	Employment available only seasonally
Casualisation	Shift towards casual labour

Important Tables and Data

These statistics are frequently asked in exams.

Indicator	Value
Workforce in India (2022–23)	About 545 million
Worker-population ratio	43.7
Workforce in primary sector	46.1%
Workforce in service sector	29.8%
Self-employed workers	58.4%
Informal sector workers	About 89%

Very Short Answer Questions

1. Who is a worker? (NCERT Page 94)
2. Define worker-population ratio. (NCERT Page 95)
3. What is jobless growth? (NCERT Page 101)
4. What is disguised unemployment? (NCERT Page 107)
5. What is casualisation of workforce? (NCERT Page 102)
6. What is informal sector? (NCERT Page 103)
7. What is MGNREGA? (NCERT Page 108)

Short Answer Questions

1. Explain worker-population ratio. (NCERT Pages 95–96)
2. Differentiate between formal and informal sectors. (NCERT Pages 103–104)
3. Explain different types of unemployment. (NCERT Pages 106–108)
4. Discuss employment trends in India. (NCERT Pages 100–102)
5. Explain casualisation of workforce. (NCERT Page 102)

Long Answer Questions

1. Discuss the changing structure of employment in India. (NCERT Pages 100–102)
2. Explain informalisation of Indian workforce. (NCERT Pages 103–106)
3. Explain the role of government in employment generation. (NCERT Pages 108–109)
4. Discuss different categories of workers in India. (NCERT Pages 96–98)
5. Explain the causes and forms of unemployment in India. (NCERT Pages 106–108)

Quick Revision Summary

These quick points are useful for last-minute revision.

• Work contributes to national development.
• Economic activities contribute to GNP.
• Workforce in India was about 545 million in 2022–23.
• Worker-population ratio in India is 43.7.
• Majority of Indian workers are self-employed.
• Agriculture remains the largest employer.
• GDP growth exceeded employment growth.
• Jobless growth became visible after the 1990s.
• Service sector employment increased rapidly.
• Casualisation increases worker insecurity.
• About 89% of workers are in informal sector. )
• Informal workers lack social security.
• Disguised unemployment is common in agriculture.
• Seasonal unemployment is common in rural areas.
• MGNREGA guarantees 100 days of rural employment.