Class 11 Employment Growth Informalisation and Other Issues Notes: CBSE Economics Chapter 6 (Indian Economic Development)

Worker

A worker is a person who earns a living by engaging in some form of productive activity.

Types of Workers:

a. Self-Employed: Workers who own and operate a business for a living are referred to as self-employed. Consider a farmer who is working on his own farm. More than half of the workforce falls into this category.

b. Hired Workers: Hired workers are persons who are hired by others and are given wages and salaries in exchange for their services. The two types of hired workers are:

• Casual Workers: Casual workers are those who are not engaged on a regular/permanent basis by their companies, and are given wages on an hourly/ day basis, and do not receive social security benefits.

• Regular Workers (Salaried): Regular salaried employees or regular workers are those who are employed by someone or an organisation on a regular basis and are paid their salaries on a regular basis.

Economic Activity

It refers to the activity performed by people to earn a living. Consumption, production, and distribution are the three primary forms of economic activities.

a. Production Activity

It refers to all those activities which are undertaken to produce goods and services for the generation of income.

b. Consumption Activity: The usage of products and services by a household is characterised as consumption. It is used to calculate the Gross Domestic Product (GDP). Consumption is commonly used by macroeconomists as a proxy for the total economy.

c. Distribution Activity: Work directly associated with the construction, operation, and routine maintenance (other than major overhauls) of substation plant, overhead mains, underground cabling and jointing, pole inspection and street lighting, customer emergency services, and tree trimming and removal within minimum approach distances to energised conductors currently performed by Distribution Activities.

Employment in Firms, Factories And Offices

• The migration of labour from agriculture and other related sectors to industry and services during the course of a country's economic development Workers migrate from rural to urban areas as part of this process.

• In general, we categorise all producing activities into the following industrial divisions:

• Agriculture, forestry, and logging, as well as ashing , mining, and quarrying, are all part of the primary sector.

• Manufacturing, building, electricity, gas, and water delivery are all examples of the secondary sector.

• Trade, transportation, storage, and services are all part of the tertiary sector.

Jobless Growth

It is characterised as a condition in which the economy's growth outpaces job prospects, resulting in unemployment.

a. Casualisation of Employment

Casualisation is a term used to describe a situation in which the percentage of workers hired temporarily basis increases over time. People start working as casual labourers due to a lack of chances in the organised sector. Furthermore, the freedom in terms of working conditions, as well as the lack of particular enforcement of labour laws, encourages businesses to hire more casual workers.

b. Informalisation of Employment

Refers to a situation when people tend to find employment more in the informal sector of the economy, and less in the formal sector of the economy. Workers transitioning from permanent employment to casual and fixed-term contracts, outsourcing, and employment through labour brokers are all examples of informalisation. Many individuals who have previously worked in a formal job will most likely re-enter the workforce as an atypical employee.

Unemployment

It occurs when a person is ready and willing to work at the current wage rate but is unable to find work.

Types of Unemployment

• Rural unemployment: It is defined as unemployment that occurs in rural areas. There are two types:

• Seasonal Employment: It describes a situation in which a large number of people are unable to obtain work during a specific season. Agriculture, ice cream factories, woollen mills, and other industries are examples.

• Disguised Employment: When the marginal physical productivity of labour is zero or negative, it is referred to as "disguised employment."

• Urban Unemployment: It refers to the employment occurring in urban areas. There are three types:

• Industrial Unemployment: This category includes illiterate people who want to work in industries, mining, transportation, trading, and construction, among other things.

• Educated Unemployment: Among the educated people, apart from open unemployment, many are underemployed because their qualification do not match the job. A Faulty education system, mass output, preference for white collar jobs, lack of employable skills and dwindling formal salaried jobs are mainly responsible for unemployment among educated youths in India.

• Technological Unemployment: As a result of technological advancements, an economy may experience some structural unemployment. Such unemployment may be described as technological unemployment. Some workers are being replaced by machines as a result of the introduction of new machinery, improvements in manufacturing procedures, labour-saving technologies, and so on.

• Causes of Unemployment

1. Slow Economic Growth: In the Indian economy, the rate of growth is very slow. This poor rate of growth does not give adequate job possibilities for the growing population. The Supply of labour is much more than the employment opportunities.

2. Rapid Growth of Population: Constant increase in population has been a grave problem in India. It is one of the primary reasons for unemployment. The number of unemployed has increased instead of decreasing during the plan period.

3. Inadequate Employment Planning: India's five-year plan was not created with the goal of creating jobs in mind. The unemployment problem was assumed to be solved through economic expansion.

4. Overuse of Foreign Technology: Due to the expensive expense of indigenous technology, excessive use of foreign technology has resulted in technical unemployment in the country.

5. Shortage of Financial Resources: A lack of financial resources has hampered the expansion and diversification of agriculture and small-scale industry. This has been accompanied by a tightening of government control over the economy.

Government and Employment Generation

• The National Rural Employment Guarantee Act, 2005 was passed by the government in parliament in 2005. 

• It provides all rural households who volunteer to conduct unskilled manual labour 100 days of guaranteed paid employment. 

• This programme is one of many that the government has put in place to help persons who are unemployed in rural areas find work. 

• Since the country's independence, the federal and state governments have played an essential role in creating jobs or chances for job creation. 

Their efforts can be divided into two categories:

a. Direct Employment: In this case, the government hires employees for administrative purposes in several departments. It also owns and operates factories, hotels, and transportation companies, providing direct employment to individuals.

b. Indirect Employment: When the 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 as a result, the number of job opportunities in the economy will expand.

5 Important Topics of Economics Class 11 Chapter 6 you shouldn’t Miss!

Importance of Chapter 6 Economics Class 11 Notes

• Employment Growth Informalisation And Other Issues Notes are very important for understanding how employment impacts the economy. 

• These notes simplify complex ideas about the workforce, unemployment, and the shift towards informal jobs. 

• By using Economics Class 11 Chapter 6 PDF, students can easily grasp important concepts, making it easier to prepare for exams. 

• The notes help break down difficult topics into simple terms, helping students build a solid foundation in economics.

• Chapter 6 Economics Class 11 Notes provide clear explanations of the government's efforts to improve employment opportunities and tackle unemployment.

Tips for Learning the Class 11 Economics Chapter 6 Employment Growth Informalisation and Other Issues 

• Understand Key Terms: Focus on terms like employment, workforce, informalisation, and unemployment. Knowing these definitions will help you understand the chapter better.

• Study Trends: Look at the changes in employment over time, and how different sectors like agriculture, industry, and services are affected.

• Use Examples: Relate real-life examples of informal workers and unemployment situations to the concepts discussed in the chapter.

• Focus on Government Policies: Learn about the various government initiatives aimed at boosting employment and reducing unemployment.

• Practice Diagrams and Data: Review charts and graphs that show employment trends and the distribution of workers across sectors.

Conclusion

Employment Growth Informalisation And Other Issues Notes provide a clear understanding of how employment impacts the economy and society. These notes cover essential topics like workforce distribution, unemployment, and the rise of informal sectors, making complex ideas easy to grasp. By focusing on government initiatives and employment trends, students can better understand the challenges and opportunities in the labour market. Economics Class 11 Chapter 6 PDF simplifies difficult concepts, helping students prepare effectively for exams and build a strong foundation in economics.

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Conclusion

There has been a change in the structure of the workforce in India with the expansion of the service sector and the advent of new technologies. Now small-scale enterprises and individual enterprises can work with multinational companies. Outsourcing work like housekeeping and sanitation functions has created employment opportunities. With the advent of the Internet, many people have started to work from home. The GDP has increased rapidly in the last two decades but not many employment opportunities are getting generated. The government is taking many initiatives in generating employment opportunities, especially in rural regions.