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Employment Notes

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Sriram Swaminathan
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555 views3 pages

Employment Notes

Uploaded by

Sriram Swaminathan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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EMPLOYMENT

Introduction: Employment is an activity from which a person earn means of livelihood. Each and
every working person have their contribution to national income in various economic activities. As no
one work only for their own self but also for those who are dependent on them.

Worker and Employment


A worker is an individual who is involved in some economic activity, to earn a living.
A worker contributes to the process of Gross Domestic Product (GDP) by rendering his productive
activities. Those activities which contribute to the Gross Domestic Product or gross national product
are called economic activities.
When net earnings are added to GDP we get GNP.
A worker is an individual who is involved in some economic activity, to earn a living.
Some get employment throughout the year; some others get employed for only a few months in a
year. Those who are paid by an employer for their work as workers
Labour force: All person who are working and though not working, are seeking and are available for
work is known as labour force.
Labour force participation rate: The ratio of labour force to total population is called labour force
participation rate.
Work force: The numbers of person who are actually employed at a particular point of time is known
as work force. Labour force = Person working + Person seeking and or available for work.
The numbers of person who are actually employed at a particular point of time is known as work
force.
Unemployed people = labour force - Work force

Participation of People in Employment


Working population is calculated by dividing the total number of workers in India by the population.
The worker population ratio indicates the status of workers in the society and their working
conditions.
This also enables to know the attachment, which a worker has with his job and the authority
possessed by him over other coworkers.
1. Higher proportion of Rural People
2. Employment opportunities
3. Education level

Employment
Meaning: Employment is an activity which enables a person to earn means of living.
Types
1. Self employed
It refers to Workers who own and operate an enterprise to earn their livelihood are known as self-
employed. It is a major source of livelihood for both men and women.
In case of self-employment, a person makes uses of his own land, labour, capital and
entrepreneurship, to make a living. For example, shopkeepers, traders, businessmen, etc.
2. Wage employed
It refers to when workers sell his labour and earn wages in return then it is said to be known as wage
employment. Under wage employment, worker is known as employee.
 Regular worker
 Casual worker
Regular worker: When a worker is engaged by someone or by an enterprise and is paid wages on a
regular basis, then such worker is known as regular salaried employee.
Workers are hired on a permanent basis and also get social security benefits (like pension, provident
fund, etc.) For example, Professors, teachers, Civil engineer working in the construction company,
etc.
Casual Workers: Workers who are casually engaged and, in return, get remuneration for the work
done, are termed as casual workers.
Casual Workers are not hired on a permanent basis. It means, they do not have: (I) Regular Income;
(ii) Protection or regulation from the government; (iii) Job Security; and (iv) Social benefits.

Growth and Changing Structure of Employment


GDP and employment growth are the indicators of economic development so according to that,
During the period 1950-2010, Gross Domestic Product (GDP) of India grew positively and was higher
than the employment growth. However, there was always fluctuation in the growth of GDP. During
this period, employment grew at a stable rate of about 2%.
In the late 1990 employment growth started declining and reached at the level of growth that India
had in the early stages of planning.
During these years the gap between the growth of GDP and employment was widening this trend is
termed as jobless growth. Basically, Jobless growth refers to a situation when the economy is able to
produce more goods and services without a proportionate increase in employment opportunities.
- In 1972-73, 74.3% of workforce was engaged in primary sector which declined to 48.9% in 2011-12.
Which shows substantial shift from farm to non-farm work.
- Secondary and service sectors are showing promising future for Indian workforce as share of these
sectors have increased from 10.9% to 24.3% and from 14.8% to 26.8% respectively.

Casualization of Workforce
The distribution of workforce in different status indicates that over the last three decades, people
have moved from self-employment and regular salaried employment to casual wage work.
The movement of workers from regular workers and regular salaried employees to casual wage
workers is known as casualization of workers.
Yet self-employment continues to be the major employment provider.
So according to the trend, Self-employed shares decline from 61% in 1972-73 to 52% in 2011-12.
Regular salaried employee’s share shows a marginal increase from 15% in 1972-73 to 18% in 2011-
12. Casual workers shares shows an increase from 23% in 1972-73 to 30% in 2011-12.

Informalization of Indian Workforce


All the public enterprises and private establishments which employ 10 or more hired workers, are
called formal sector establishments.
Formal workers enjoy social security benefits and earn more than those in the informal sector.
The government protects them in various ways through its labour laws and they can form “Trade
Unions” to protect their interests.

Informal or Unrecognised Sector


Informal sector includes all those private enterprises which hire less than 10 workers.
Workers who work in such enterprises are known as informal sector workers. For example, farmers,
agricultural labourers, owners of small enterprises, etc.
In India, over 90 per cent employment is found in the unorganized sector, viz, small farms, household
industries, shops and other self-employment units.
In the formal sector, male workers account for 69 per cent of the workforce.
Workers of this sector live in slums and are squatters (persons who unlawfully occupy an uninhabited
building or unused land).

Informalization
Informalization of workforce refers to a situation whereby the proportion of workforce in the
informal sector to total workforce, increases.

Types of Unemployment
1. Disguised unemployment refers to a state in which more people are engaged in work than are
really needed. For example, if two workers are needed on a piece of land and five workers are
engaged on the same job, then three workers are disguised unemployed.

2. Seasonal unemployment occurs at certain seasons of the year is known as seasonal


unemployment. In agriculture, work is seasonal and there are no employment opportunities in the
village for all months in the year. So, when there is no work to do on farms, men go to urban areas
and look for jobs. They come back to their home villages as soon as the rainy season begins. The
period of seasonal unemployment varies from state to state, depending upon the methods of
farming, the condition of soil, the type and number of crops grown, etc.
3. Open Unemployment refers to that phenomenon in which persons are able and willing to work at
the prevailing wage rate, but fail to get work. It is called open unemployment because such
unemployment can be seen and counted in terms of the number of unemployed people.

Government Policies and Employment Generation


1. Direct employment: Government employs people in various departments for administrative
purposes. It also runs industries, hotels and transport companies and hence provides employment
directly to workers.

2. Indirect employment: When output of goods and services from government enterprises increases,
then private enterprises which receive raw materials from government enterprises will also raise
their output and hence increase the number of employment opportunities in the economy.
For example, when a government owned steel company increases its output, it will result in direct
increase in employment in that government company. Simultaneously, private companies, which
purchase steel from it, will also increase their output and thus employment. This is the indirect
generation of employment opportunities by the government initiatives in the economy

Employment Generation programs


Government has implemented many employment generation programme like National rural
employment guarantee act-2005, Prime Minister Rozgar Yojana, Swarna Jayanti Shahri Rozgar Yojana.
Through which
 Government aims to alleviate poverty through such employment generation programmes
 All these programme aims at providing employment services in primary health, education,
rural shelter etc.
 These programme also into assist people in buying income and employment generating
assets developing community assets in construction of houses and sanitation.

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