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NCERT Solutions for Class 11 Economics Chapter 7 - Employment: Growth, Informalisation And Other Issues

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Class 11 NCERT Solutions Indian Economic Development - Chapter 7 - Free PDF Download

Download the free PDFs of NCERT Solutions for Class 11 Economics Chapter 7 from Vedantu. Our subject-matter experts have prepared all the solutions as per the Class 11 CBSE guidelines. The exercises and the solutions will undoubtedly help you to revise your syllabus and score the maximum marks in your examinations. We have covered all the topics in class 11th Eco Chapter 7 Employment Growth informalisation and other issues to aid students through their examinations. Economics is a challenging subject to learn on your own. Hence, Vedantu provides all the study materials to facilitate an easy learning process.


NCERT Solutions for Class 11


Class 11 Economics

Subject Part:

Class 11 Economics - Indian Economic Development

Chapter Name:

Chapter 7 - Employment: Growth, Informalisation And Other Issues


Text, Videos, Images and PDF Format

Academic Year:



English and Hindi

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Other Materials

  • Important Questions

  • Revision Notes

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Access NCERT Solutions for Economics Class 11 Chapter 7 – Employment: Growth, Informalisation and Other Issue

1. Who is a worker? 

Ans: A worker is said to be a person who is hired to perform work under a service contract.

  • People work to earn an income. A man or woman who's concerned in manufacturing interest contributing to the float of products and offerings withinside the financial system is referred to as a worker. 

  • In different words, an employee appears as a monetary agent who contributes to the manufacturing of products and offerings, thereby, to the GDP all through a specific year. An employee renders offerings to others and gets rewards withinside the shape of wages, salaries or in kind. 

  • Hence, we will say that once a man or woman is engaged in a manufacturing interest or self hired and contributes to the era of GDP, then that man or woman is called a worker. For example, a doctor, an engineer operating in a factory, etc.  

2. Define worker population ratio. 

Ans: The number of people employed per thousand people is known as the worker population ratio. The Worker Population Ratio is a metric for assessing the country's employment condition. 

This is actively contributing to the manufacturing of products and offerings. It is measured with the aid of using the ratio among a particular country’s team of workers and its overall populace. This ratio acts as a trademark for assessing the employment stage in a specific use of at any factor of time. Higher the employee-populace ratio better is the engagement of humans withinside the effective sports and vice-versa.

The worker population ratio is expected with the aid of dividing the full workforce pressure with the aid of using the full populace and multiplying with the aid of using 100. Algebraically, 

Worker population ratio = (total workforce/ total population) x 100

3. Are the subsequent people- a beggar, a thief, a smuggler, a gambler? Why? 

Ans: No, a beggar, a thief, a smuggler, a gambler can't be referred to as people. An employee is concerned in a manufacturing interest that contributes to the GDP of a us of a. As none of them (a beggar, a thief, a smuggler and a gambler) are concerned in any criminal monetary manufacturing interest that contributes to the countrywide earnings of workers, hence, none of them may appear as people. 

4. Find the peculiar one out:

  1. proprietor of a saloon

  2. a cobbler

  3. a cashier in Mother Dairy

  4. a lessons grasp

  5. shipping operator

  6. production employee. 

Ans: Tuition grasp and the proprietor of a saloon are the peculiar guy out. This is due to the fact all others are employed at the same time as those are self hired. Tuition grasp and the proprietor of a saloon are engaged of their personal commercial enterprise and personal profession, while, the cobbler, the development employee, the shipping operator and the cashier withinside the Mother Dairy are employed and render their offerings to others in alternate of rewards withinside the shape of salaries or wages. 

5. The newly rising jobs are observed generally withinside the _____Sector (provider/manufacturing).

Ans: The newly rising jobs are observed generally withinside the provider quarter. The provider quarter is taking a lead over the producing quarter as a supply of employment. It consists of trade, commerce, banking, insurance, fitness and different offerings. These offerings are growing at a quicker tempo than the producing and different allied manufacturing sports. This is due to the globalization of the financial system. 

6. A status quo with 4 employed people is referred to as (formal/casual) quarter status quo. 

Ans: An status quo with 4 employed people is referred to as the casual quarter status quo. A casual quarter is an unorganized quarter of the financial system. It consists of all establishments that hire much less than 10 people, besides farming and self employment ventures. Therefore, an status quo with 4 employed people is referred to as the casual quarter status quo. 

7. Raj goes to school. When he isn't always in school, you may discover him operating in his farm. Can you keep in mind him as an employee? Why? 

Ans: Raj certainly qualifies as a worker. This is because his effort contributes to the farm's overall productivity. Raj is a worker because, as suggested by the definition of worker, a person who is involved in an economic activity or assists anybody in an economic activity and, as a result, contributes to the country's GDP is considered a worker. 

8. Compared to city girls, greater rural girls are observed operating. Why? 

Ans: In rural regions, over 30% of the workforce is female, but in metropolitan areas, just 14% of the labour is female. This shows that, as compared to urban women, rural women make up a larger proportion of the female workforce. On the one hand, rural women are less educated, unskilled, and low productive; on the other hand, urban women are more educated, skilled, and productive, and have a better chance of finding work. Surprisingly, urban women make up a smaller proportion of the female workforce than their rural counterparts. The causes for the low proportion of urban ladies in the total female workforce are as follows:

1. Because agricultural and associated jobs do not need a high level of expertise or specialisation, rural women work on farms to support their families.

2. Because rural poverty is more common than urban poverty, rural women are forced to work in low-wage employment in order to maintain their families' livelihoods.

3. Because urban families typically make a greater income than rural families, and because poverty in urban regions is not as prevalent as it is in rural areas, there is less of a need for female members to seek employment.

4. The choice to work by female family members is based on the family's decision rather than her own.

5. While female literacy in India is rising, it still has to improve significantly before urban women account for a larger part of the overall female workforce.

9. Meena is a housewife. Besides looking after family chores, she works withinside the fabric keep that's owned and operated with the aid of using her husband. Can she be taken into consideration as an employee? Why?

Ans: A man or woman who's concerned withinside the manufacturing interest and contributes to the era of GDP is called employee. As right here Meena works withinside the fabric keep to guide her husband and contributes to GDP with the aid of rendering her offerings, so, she may be taken into consideration as an employee. 

10. Find the peculiar guy out:

(i) rickshaw puller who works below a rick- shaw proprietor 

(ii) mason 

(iii) mechanic keep employee 

(iv) shoeshine boy. 

Ans: Shoeshine boy is a peculiar guy out. All of the other labourers (a rickshaw puller, a bricklayer, and a mechanic shop employee) are recruited. They provide services to their employers in exchange for compensation in the form of salary or wages. Shoeshine guy, on the other hand, is a self-employed person who does his job independently.

11.  The following desk suggests distribution of team of workers in India for the year 1972-73. Analyse it and provide motives for the character of team of workers distribution. You will be aware that the records is bearing on the state of affairs in India 30 years ago!

Place of Residence

Workforce (in millions)












Ans: The overall team of workers in India withinside the year 1972-73 become 234 million that consists of 195 million team of workers of rural and 39 million of the city populace. This suggests an extra involvement of the rural team of workers comprising 83 % of the full team of workers in comparison to 17% of the city team of workers. This is due to the fact a majority of rural populace become engaged in agricultural and allied sectors. 

The rural team of workers accommodates 64% of the male team of workers and 36% of the lady team of workers. In contrast, the city team accommodates approximately 82% of male team of workers and 18% of the lady team of workers. The participation of adult males in each rural in addition to withinside the city regions is better than the ladies due to the shortage of possibilities to be had to girls for obtaining training. Also, households frequently discouraged lady contributors to take in the process and, consequently, girls have been limited to family works most effectively. 

Comparing city lady paintings pressure with that of the agricultural lady team of workers, we will finish that the ladies withinside the rural regions fashioned 36 % of the team of workers, while, the ladies withinside the city regions fashioned most effective 18% of the team of workers. In the agricultural regions, no matter a majority of the populace become engaged in farming and allied sports, agricultural quarter had low productivity. Consequent to the low productivity, rural humans had low profits that in addition led to sizable poverty withinside the rural regions. Thus, it is able to be concluded with the aid of using analysing the above records that Indian financial system suffered from low productivity, acute unemployment and sizable poverty, disguised unemployment in agricultural quarter and occasional lady participation charge withinside the team of workers 30 years ago

12. The following desk suggests the populace and employee populace ratio for India in 1999-2000. Can you estimate the team of workers (city and overall) for India? 


Estimates of populace 

(in crores)

Worker Population Ratio



Estimated of population (in crores)

Worker population ratio

Estimated no. of workers (in crores)




71.88/100 x 41.9 = 30.12




28.52/100 x 33.7 = 9.61124




100.40/100 x 39.5 = 39.658

Estimated no of workers in urban areas= 28.52 x 33.7/100 = 9.61124 Total workforce in India = 100.40 x 39.5/100 = 39.658

13. Why are everyday salaried personnel greater in city regions than in rural regions? 

Ans: Regular salaried employees are individuals who are employed and remain on their companies' payrolls on a long-term basis. They are generally highly skilled employees who are eligible for a variety of social security benefits. Because such professions need trained and specialised employees, the concentration of these people is larger in urban regions than in rural ones. In metropolitan locations, there are greater possibilities to learn and improve such talents. These abilities are gained through a process of training and education that is unavailable in rural regions owing to a lack of investment, infrastructure, and a rural population with a low literacy level.

Furthermore, owing to the existence of infrastructure and the availability of contemporary amenities such as banks, transportation, and communication, large corporations are located only in metropolitan regions. As a result, the majority of regular paid employee positions are concentrated in metropolitan regions, resulting in a rise in the number of regular salaried workers.

14. Why are much less girls observed in everyday salaried employment? 

Ans: Because a higher number of women are involved in economic activity without solid contracts and constant income, there are fewer women in regular paid work than males. Regular salaried job has two characteristics: solid contracts and consistent pay. Women work in unorganised sectors of the economy and are not eligible for social security payments. Furthermore, women labour in more precarious conditions than males, have less negotiating power, and, as a result, are paid less than men.

As a result, compared to males, women employees are more likely to be found in self-employment and temporary labour than than conventional salaried employment.

15. Analyse the latest tendencies in sectoral distribution of team of workers in India.

Ans: The 3 predominant sectors of an financial system i.e. Primary, Secondary and Tertiary together are referred to as occupational shapes of a financial system.For the vast majority of Indian employees, the primary sector is their principal source of income. Only approximately 24% of the workforce is employed in the secondary industry. Agriculture, forestry, and fishing employ around 27% of service sector workers and 67 percent of the workforce in rural India. Manufacturing, construction, and other industrial activities employ around 16% of rural workers. About sixteen according to the census of rural people are operating in manufacturing, production and different business sports. In addition, the tertiary quarter is taking a lead over the secondary quarter as a supply of employment and growing proportion in India's GDP. As a long way because the distribution of male and lady is taken into consideration, an excessive percent of overall lady workforces are engaged withinside the number one quarter than withinside the secondary and tertiary sectors. About 17 according to cent of rural humans are hired in provider quarter and approximately 60 according to cent of city people are in provider quarter. The secondary quarter gives employment to 30 according to cent of city paintings pressure. Though each ladies and men people are focused withinside the number one quarter, girls people awareness may be very excessive there. About 63 according to cent of the lady team of workers are hired withinside the number one quarter while much less than 1/2 of of adult males paintings in that quarter. Men get possibility each in secondary and provider quarter. 

16. Compared to the 1970s, there has rarely been any alternate withinside the distribution of team of workers throughout diverse industries. Comment. 

Ans: India being an agrarian financial system has the majority of the populace depending on the rural area to earn their livelihood. Although, the developmental techniques in India have geared toward the discount of populace depending on agriculture, but the discount withinside the populace engaged in agricultural areas has now no longer been significant. In 1972-73, approximately 74 % of the paintings pressure was engaged in number one area which decreased to 50% in 2011-12. On the alternative hand, the stocks of secondary and tertiary sectors in employment rose from 11 % to 24 % and 15 % to 27 % respectively. The paintings pressure distribution suggests that during the last 3 a long time i.e. from 1972- 2000, humans have moved from self-employment and everyday salaried employment to informal salary employee. This precise sample of motion from self employment and everyday salaried employment to informal salary paintings is called as casualization of labor pressure. Thus, it could be concluded that despite the fact that adjustments withinside the distribution of the group of workers have taken place, but commercial and tertiary areas want to grow their proportion withinside the group of workers distribution through producing more employment possibilities and soaking up extra labour from the rural area.  

17. Do you believe that within 50 years, employment generated withinside India is commensurate with the boom of GDP in India? How? 

Ans: In the previous 50 years, India's employment growth has not kept pace with the country's GDP development. During the 1950s, GDP expanded at a healthy pace of more than 8%, and it increased at a healthy rate of more than 8% in 2010. In the 1950s, employment generation was 0.39 percent, and throughout the 1960s and 1990s, it maintained a pretence of development. However, during the second half of the decade, job creation had plummeted. As a result, we may conclude that job creation in India is proportional with the country's GDP development.

The reason for this is that the increase in GDP is due to the usage of new and improved technology that has replaced labour with machines. This did not result in the creation of new jobs in the industrial and tertiary sectors. As a result, the industrial and tertiary sectors were unable to absorb the agriculture sector's extra labour. As a result, the agriculture sector's hidden unemployment, low productivity, and widespread poverty persisted. Furthermore, MNCs that contributed significantly to India's economic progress employed only highly educated and specialised workers.

These MNCs intended to achieve higher production levels by utilising better technology rather than creating more job possibilities, resulting in employment growth that is not comparable with India's GDP growth.

18. Is it important to generate employment withinside the formal area in preference to withinside the casual area ? Why? 

Ans: Yes, it's far more important to generate employment withinside the formal area in preference to withinside the casual area because, worker advantages including pension, provident fund, gratuity etc. are supplied in the formal area in preference to withinside the casual area. The people and corporations withinside the formal area get everyday revenue and incentives in comparison to casual area. Formal area makes use of cutting-edge generation and superior equipment withinside the manufacturing process. Thus, technology of employment withinside the formal area reduces poverty, earnings inequality and different social evils to a few extent. 

19. Victor is capable of get paintings best for 2 hours in an afternoon. Rest of the day, he's searching out paintings. Is he unemployed? Why? What sort of jobs may want to folks like Victor is doing? 

Ans: Yes, Victor is an unemployed employee. He works for 2 hours an afternoon however a chief component of the day he's searching out paintings and is unemployed. This implies that he's an underemployed employee. The state of affairs of underemployment refers to a state of affairs wherein someone receives paintings for lesser time than the time he truly can and desires to paint. According to the National Sample Survey Statistics, someone who's hired for much less than 28 hours in every week is called underemployed. Victor may want to do jobs which can be element time in nature like losing information papers, operating in a restaurant, turning in couriers, financial institution tellers, etc. 

20. You are living in a village. If you're requested to recommend the village panchayat, what kinds of sports might you endorse for the development of your village which might additionally generate employment. 

Ans: Sports and games are known as important fields for skill development as well as for career development. While focusing on sports, development of the village can be ensured along with the employment opportunities. Sports such as athletics can be promoted which will prepare villagers for various state, national or international competitions. It will also help them in getting admissions in the good colleges and will also help to generate employment by providing coaching in the future. Other sports that can be promoted such as kabbadi, kho-kho, cricket, boxing, wrestling, etc. 

21. Who is an informal salary labourer? 

Ans: Casual employees are people who do not work on a year-round basis. They are only useful for a few months. Employers do not recruit casual labour on a regular basis. They are not eligible for social security benefits such as a provident fund, a pension, or a stipend. They are usually low-wage employees. Workers on a building site, for instance.

22. How will you recognize whether or not a employee is operating withinside the casual area? 

Ans: The following capabilities assist to comprehend a employee operating withinside the casual area:

  • An employee operating in an enterprise (apart from the general public area institutions and the private area institutions) hiring 10 or much less than 10 people. 

  • This area consists of tens of thousands and thousands of farmers, agricultural labourers, proprietors of small corporations and self hired. These sections of humans aren't employed employee. 

  • An employee operating in casual area does now no longer revel in social safety advantages including provident fund, gratuity, pension, etc. 

  • The monetary hobby of the people operating withinside the casual area isn't covered through any Labour Laws apart from Minimum Wages Act. Therefore, people withinside the casual area are quite uncovered to the uncertainties of the marketplace and feature low bargaining power.

NCERT Solutions for Class 11 Indian Economic Development Chapter 7 Employment: Growth, Informalisation and Other Issues

Vedantu: Class 11 Economics Chapter 7 Solutions

You can download the NCERT Solutions Class 11 Economics Chapter 7 PDF for free. We have solved and explained all the questions given in the chapter. A firm grip on the concepts is essential to get good marks in your examination. Students can learn all the concepts covered in the chapter from our NCERT Solutions and notes and lay a strong foundation for this chapter. Refer to the NCERT Solutions for Chapter 7 Economics Class 11 to understand the concepts in-depth. Economics is a subject that requires clear concepts and a lot of practice, hence, if you practice the NCERT Solutions available on Vedantu, you will be well prepared for your examination. 

Growth Informalisation and Other Issues

Most people dislike Economics since they cannot grasp the concepts. It is futile to learn the matter by heart and not understand the essence of the chapter, since you will get application-based questions in the examinations. The class 11th eco chapter 7 employment growth informalisation and other issues contain the details about who a worker is, who working-population refers to, what their significance is, etc. It is a relevant topic in today's trying times when the worker-population ratio has gone down significantly. 

Concepts of Economics

Economics seems to be easy if you try to understand it. Learning Economics enables you to understand a country's state of affairs, its GDP, etc. You get to learn the importance of employment and can have a positive outlook for the future. Students who study Economics have much more practical knowledge about the country than others. Economics is, and always has been a vital subject to understand the state of affairs. 

Tips for Learning the Chapter

Though the subject is not easy, it is fascinating. If you are facing problems and have doubts while studying CBSE Class 11 Economics Chapter 7, you can refer to the answers provided on Vedantu. Students are suggested to go through the text thoroughly before theour solutions. You can refer to our solutions at any time and clear your concepts and doubts. Students should have the habit of writing answers for practice too. It will help them to answer any question that may come in the examination.

Related Questions

1. Why is it Essential to Generate Employment in the Formal Sector Rather Than in the Informal Sector?

Answer: It is essential to generate employment in the formal sector rather than in the informal sector because employee benefits like pension, provident fund (PF), gratuity, etc. are provided only in the formal sector and not in the informal sector. The workers in the formal sector get regular and timely salary and get a decent amount of incentives compared to the informal sector. The formal sector uses modern technology and machines for the production of goods. Thus, the generation of employment in the formal sector reduces poverty and the inequality between the classes, and social evils are somewhat reduced.

2. If a Person Works for Two Hours a Day and Looks for Another Job for the Rest of the Day, Are They Employed or Unemployed? Why?

Answer: If a person works for only two hours a day, then they are unemployed. The major portion of the day is spent looking for a job, and hence they are unemployed. The situation of unemployment refers to a condition where a person can work for a lesser period than they want to work. Such a person can do other side jobs and part-time jobs to make better use of their time. 

FAQs on NCERT Solutions for Class 11 Economics Chapter 7 - Employment: Growth, Informalisation And Other Issues

1. How can you determine whether a person is working in the informal sector or not?

There are a few features which we can use to determine if a person is working in the informal sector. There are many differences between the people working in the informal and formal sector. The stark differences show the gap between the two classes-

  • The worker works in an organization (other than the public sector and the private sector), where less than ten people are working.

  • The sector includes millions of farmers, labourers, owners of a small business or self-employed people. These people are not hired workers.

  • An informal worker does not enjoy benefits like provident fund, pension, gratuity, etc.

2. Why are there more rural female workers than urban female workers?

The women working in rural areas is about 30%, while in urban areas, it is only about 14%. It means that the rural working women are more, though rural women are much less educated if at all, than urban women. The reasons for these differences are-

  • Agricultural fields require many labourers, and the workers do not require special skills. Hence, uneducated women can work to support their families. 

  • Poverty is much more rampant in rural areas. Hence, women are forced to work to support their families.

  • Urban families earn more than rural areas, and hence, women need not work to support their families.

3. What are the different types of employees?

The different types of employees are;

  • Regular salaried employee- When a particular worker is selected by an organization or an enterprise to work for them and is paid on a regular basis, then they are known as regular salaried employees. 

  • Self-employed - People or workers who support their own organizations and enterprises and earn their livelihood from them are called self-employed.

  • Daily wage workers or Casual wage workers - There are also casual waged employees, and the construction site workers fall under this category.

4. What are the different types of rural unemployment?

Rural unemployment refers to the unemployment that is seen in rural areas. They are of two types.

  • Seasonal unemployment - This is the circumstance and the situation in which a given number of people are unable to find work in a particular season. The main areas where it is observed include agriculture, factories, etc. 

  • Disguised unemployment - This is seen when the marginal physical productivity of the labour comes down to zero or negative.

5. What are the different types of urban unemployment?

Urban unemployment refers to the unemployment seen in urban areas. They are of three types,

  • Industrial unemployment - This refers to the lack of work that illiterate people face in the industrial, mining, transport, trade, and construction sectors.

  • Educated unemployment - There are instances in the cities where even the educated people find it difficult to get a job to earn a living. One case of this might be the under qualification of the individual or the lack of skills in the individual. 

  • Technological unemployment - As a result of science, new technologies, machinery development, and improvement result in less demand for manual labour. This results in technological unemployment.

6. What causes unemployment?

Certain factors that cause unemployment is,

  • Slow economic growth - The slow economic growth that is witnessed in the country of India results in the failure of providing enough employment opportunities to individuals.

  • The rapid growth of population - Another reason for this is the rise in the population. As a result of this, it is witnessed that the supply of labour is much more than the employment.

  • Lack of financial resources - The expansion of various sectors has been put to hold because of the lack of enough financial resources.

7. Are the NCERT Solutions available for Class 11 Economics Chapter 7?

Yes, the NCERT Solutions for Class 11 Economics Chapter 7 can be easily accessed from the website of Vedantu ( Please follow the below steps to download.

  1. Click on this link

  2. Click on chapter 7.

  3. Click on download PDF to download the solutions.

These solutions will prepare the students to answer any question that might be asked in the question paper pertaining to this particular chapter. The various exercises and the answers along with them help to clear all the doubts that may arise while learning. The easy and lucid language will help the students to retain all the important concepts. With constant practice and revision, the students will attain confidence and clarity in this chapter.