NCERT Solutions for Class 11th: Ch 7 Employment: Growth, Informalisation and Other Issues Economics

Page No: 134

1. Who is a worker?


A worker is one who engaged in economic activity and contributes to national product.

2. Define worker-population ratio.


Worker-Population ratio is defined as the proportion of population that is actively contributing to the production of goods and services. It is measured by the ratio between the country's workforce and its total population.
Worker-population ratio = Total Workforce/Total Population × 100

3. Are the following workers — a beggar, a thief, a smuggler, a gambler? Why?


No, a beggar, a thief, a smuggler, a gambler cannot be called as workers. A worker is involved in a production activity that contributes to the GDP of a country. As none of them are involved in any legal economic production activity that contributes to the national income of the country, hence, none of them can be regarded as workers.

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4. Find the odd man out (i) owner of a saloon (ii) a cobbler (iii) a cashier in Mother Dairy (iv) a tuition master (v) transport operator (vi) construction worker.


A cashier in Mother dairy is different from all others because the cashier is working in a regular salaried job.

5. The newly emerging jobs are found mostly in the ____________sector. (service/manufacturing).
► service

6. An establishment with four hired workers is known as __________ (formal/informal) sector establishment.
► informal

7. Raj is going to school. When he is not in school, you will find him working in his farm. Can you consider him as a worker? Why?


Raj can be considered as a worker because he is contributing towards productivity of his farm.

8. Compared to urban women, more rural women are found working. Why?


The percentage of female workforce in the rural areas is nearly 30 % while it is only 14 % in the urban areas. The data shows that rural women are more working than urban women. This is because:
→ Rural women are more insecure and poor than urban women due to bigger size of family and lesser source of income.
→ As in the agricultural and allied activities, high degree of skills and specialisations is not required, so, rural women engage themselves to support their family on farms.
Female literacy in India is improving, yet it has to get much better before urban female accounts for higher share in the total female workforce.

9.  Meena is a housewife. Besides taking care of household chores, she works in the cloth shopwhich is owned and operated by her husband. Can she be considered as a worker? Why?


Meena can be considered as a worker as she is involved in the production activity and contributes to the generation of GDP.

10. Find the odd man out (i) rickshaw puller who works under a rick- shaw owner (ii) mason (iii) mechanic shop worker (iv) shoeshine boy.


Shoe shine boy is different from others as all others are hired workers. They render their services to their employers and receive rewards in the form of salaries or wages in return. While, shoe shine boy is a self-employed worker and carries out his occupation himself. In other words, he is engaged in his own profession.

11. The following table shows distribution of workforce in India for the year 1972-73. Analyse it and give reasons for the nature of workforce distribution. You will notice that the data is pertaining to the situation in India 30 years ago!

Place of Residence
Workforce (in millions)


(i) The total workforce in India in the year 1972-73 was 234 million that includes 195 million workforce of rural and 39 million of the urban population. This indicates a greater involvement of rural workforce comprising of 83 % of the total workforce as compared to 17% of the urban workforce. This is because a majority of rural population was engaged in agricultural and allied sectors.

(ii) The rural workforce comprises of 64% of the male workforce and 36% of female workforce. On the contrast, the urban workforce comprises of about 82% of male workforce and 18% of female workforce. The participation of males in both rural as well as in the urban areas is higher than the females because of the lack of opportunities available to women for acquiring education. Also, families often discouraged female members to take up job and, consequently, women were confined to household works only.

(iii) Comparing urban female work force with that of the rural female workforce, we can conclude that the females in the rural areas formed 36 % of the workforce, whereas, the females in the urban areas formed only 18% of the workforce. In the rural areas, despite a majority of the population was engaged in farming and allied activities, agricultural sector had low productivity. Consequent to the low productivity, rural people had low earnings that further led to widespread poverty in the rural areas.

Thus, it can be concluded by analysing the above data that Indian economy suffered from low productivity, acute unemployment and widespread poverty, disguised unemployment in agricultural sector and low female participation rate in the workforce 30 years ago.

12. The following table shows the population and worker population ratio for India in 1999-2000. Can you estimate the workforce (urban and total) for India?
Question No 12 Class 11th CHapter 7 Economics


Answer No 12 Class 11th Ch 7 economics

Estimated no. of workers in urban areas = 28.52×33.7/100 = 9.61124
Total Workforce in India = 100.40×39.5/100 = 39.658

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13. Why are regular salaried employees more in urban areas than in rural areas?


Regular salaried more in urban areas than in rural areas because:
→ Regular salaried employees are professional skilled workers and have education qualifications. These skills are acquired through the process of training and education that cannot be accessed in the rural areas due to the lack of investment, infrastructure and low literacy level of rural people.
→ Large MNCs are concentrated only in the urban areas due to the presence of infrastructure and availability of modern facilities like banks, transport and communication, etc. which provide more job facilities.

14. Why are less women found in regular salaried employment?


Less women found in regular salaried employment because:
→ Female education is not given priority in India hence most women do not have professional skills for regular salaried employment.
→ Family in India discourages female to go out of the house and work.
→ Women work in more vulnerable situations than men and have lower bargaining power and, consequently, are paid lesser than the male workforce.
→ Females have to look after their families and household activities in India.

15. Analyse the recent trends in sectoral distribution of workforce in India.


The three major sectors of an economy i.e. Primary, Secondary and Tertiary collectively are known as occupational structure of an economy. Primary sector is the main source of employment for majority of workers in India. Secondary sector provides employment to only about 24 per cent of workforce. About 27 per cent of workers are in the service sector. Also shows that about 67 per cent
of the workforce in rural India depends on agriculture, forestry and fishing. About 16 per cent of rural workers are working in manufacturing industries, construction and other industrial activities. Service sector provides employment to only about 17 per cent of rural workers. Agriculture is not a major source of employment in urban areas where people are mainly engaged in the service sector. About 60 per cent of urban workers are in the service sector. The secondary sector gives employment to about 30 per cent of urban workforce. Though both men and women workers are concentrated in the primary sector, women workers’ concentration is very high there. About 63 per cent of the female workforce is employed in the primary sector whereas less than half of males work in that sector. Men get opportunities in both secondary and service sectors.

16. Compared to the 1970s, there has hardly been any change in the distribution of workforce across various industries. Comment.


It is not true that there has hardly been any change in the distribution of workforce across various industries as compared to 1970s. In 1972-73, about 74 per cent of workforce was engaged in primary sector and in 2011-12, this proportion has declined to about 50 per cent. Secondary and service sectors are showing promising future for the Indian workforce. In these four decades people have moved from self- employment and regular salaried employment to casual wage work. Yet self-employment continues to be the major employment provider.

17. Do you think that in the last 50 years, employment generated in the country is commensurate with the growth of GDP in India? How?


In the last 50 years, employment generation in India is not commensurate with the growth of GDP. This can be understood by the given chart below:
Growth of Employement and GDP 1951-2012The GDP growth was about 3.6% during 1950s and it grew at a healthy rate of more than 8% in 2010. Employment generation was 0.39% in the 1950s and it maintained some semblance of growth between 1960s and 1990s. But by the second half of the 2010s, employment generation fallen drastically. Therefore, we can conclude that employment generated in the country is commensurate with the growth of GDP in India. 
The reason is that the rise in GDP is caused by employing modern and improved technology that substituted labour for machines. This failed to generate new employment opportunities in the industrial and the tertiary sectors. Thus, the industrial and the tertiary sectors failed to absorb the excess labour from the agricultural sector. As a result, disguised unemployment in the agricultural sector continued along with low levels of productivity and massive poverty. In addition to this, MNCs that played an important role in India's economic growth provided employment only to the educated and specialised workforce. These MNCs aimed at achieving higher output levels by employing better technology rather than generating greater employment opportunities. Thus, employment generated in the country does not commensurate with the growth of GDP in India.

18. Is it necessary to generate employment in the formal sector rather than in the informal sector? Why?


Yes, it is necessary to generate employment in the formal sector rather than in the informal sector because:
→ Social security benefits are provided in the formal sector like pension, provident fund and gratuity etc.
→ Workers and enterprises in the formal sector get regular and more income as compared to informal sector.
→ Technology used in the formal sector enterprises is updated.
Therefore, generating employment in formal sector helps in reduction of poverty and income inequalities. 

19. Victor is able to get work only for two hours in a day. Rest of the day, he is looking for work. Is he unemployed? Why? What kind of jobs could persons like Victor is doing?


Yes, victor is an unemployed worker because he is not working to his full capacity. An employed person works 6-8 hours daily. Victor could do jobs that are part time in nature like dropping news papers, working in a restaurant, delivering couriers, bank tellers, etc.

20. You are residing in a village. If you are asked to advice the village panchayat, what kinds of activities would you suggest for the improvement of your village which would also generate employment.


The suggestions I would suggest for the improvement of your village which would also generate employment:
→ Focus on poverty alleviation programmes providing employment generation opportunities such as construction of roads, schools etc.
→ Rural workers should be imparted technical knowledge and modern know-how that will not only increase their productivity but also enhance their acceptability of modernisation.
→ Easy and cheap availability of finance and credits so rural people can start small scale industries.
→ Development of community assets by generating wage employment through construction of houses, financial assistance for constructing houses, laying of rural roads etc.

21. Who is a casual wage labourer?


Casual workers refer to those workers who do not work throughout the year. They only work for few months in order to get remuneration for the work done. Casual workers are not hired by employers on a regular basis. They are generally unskilled workers. For example: workers working at a construction site.

22. How will you know whether a worker is working in the informal sector?


The following features help to recognise a worker working in the informal sector:

→ A worker working in an enterprise (other than the public sector establishments and the private sector establishments) hiring 10 or less than 10 workers.

→ This sector includes millions of farmers, agricultural labourers, owners of small enterprises and self employed. These sections of people are not hired worker.

→ A worker working in informal sector does not enjoy social security benefits such as provident fund, gratuity, pension, etc.

→ The economic interest of the workers working in the informal sector is not protected by any Labour Laws other than Minimum Wages Act. Therefore, workers in the informal sector are highly exposed to the uncertainties of the market and have low bargaining power.

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