Key Concepts

• Economic activity: Activities contributing to Gross National Product (GNP).
• Worker: Anyone engaged in economic activity (self-employed, hired, casual, regular).
• Workforce: Total number of people engaged in economic activities.
• Unemployment: Lack of work despite willingness and ability to work.

Importance of Work

• Provides income, self-worth, and social connection.
• Contributes to national income and development.
• Mahatma Gandhi emphasized education through productive work.

Workers and Employment

• India’s workforce (2022–23): ~545 million.
• Majority in rural areas (≈ two-thirds).
• Gender disparity:
  • Men: 77% of workforce.
  • Women: 23% (often unpaid household/farm work not recognized as employment).

Worker-Population Ratio (2023–24)

• Indicator of employment participation.
• India overall: 43.7%
  • Rural: 45.6%
  • Urban: 38.9%
• Men: 56.4% (both rural & urban).
• Women: 30.7% (rural 34.8%, urban 20.7%).

Types of Workers

• Self-employed: Own and operate enterprises (≈58%).
• Casual wage labourers: Irregular, vulnerable jobs (≈20%).
• Regular salaried employees: Stable jobs with wages (≈22%).

Employment by Sector (2023–24)

• Primary sector: 46.1% (dominant in rural areas, esp. women).
• Secondary sector: 24.1% (manufacturing, construction).
• Tertiary/service sector: 29.8% (dominant in urban areas).

Growth & Changing Structure

• GDP growth > employment growth (1950–2010).
• Jobless growth: Rising GDP without proportional employment.
• Shift in workforce:
  • Primary sector: 74% (1972–73) → 46% (2023–24).
  • Secondary: 11% → 24%.
  • Services: 15% → 30%.
• Casualisation: Rise in casual wage work, making workers vulnerable.
• Moderate rise in regular salaried jobs (2011–24).

Informalisation of Workforce

• Formal sector: Public/private establishments with ≥10 workers.
• Informal sector: Small enterprises, farmers, casual labourers.
• 2019–20: 535 million workers
  • Formal: 59 million (~11%).
  • Informal: 476 million (~89%).
• Formal sector workers enjoy social security; informal workers lack benefits.

Key Issues

• Under-recognition of women’s unpaid work.
• Vulnerability of casual labourers.
• Persistent dominance of informal sector.
• Challenge of generating decent, secure employment.