Economics 4 Marks Question

In urban areas the proportion is about 35% whereas in rural areas the participation ratio is about 41. Now analysing the reason for this difference in this participation ratio we notice that:

1. In rural India people have an access to limited resources in order to earn a higher income. As a result they participate more in the employment market to meet their needs. Not only that many of them are illiterate. They do not attend any school, college or any other training centre. If some of them do attend, they drop in the midway to take up a job.
2. In the urban areas on the other hand large majority of the people are able to study and get trained in various institutions. As a result, they are offered employment opportunities of various kinds.
3. The urban educated lot look forward to the appropriate job opportunities, in tune with their qualifications and skills. In the rural areas, because of the precarious nature of the employment, the masses cannot afford to stay at home because their economic status does not permit them to do so.

The concept of employment can be looked upon from various angles:

1. Self-employment is a phenomenon related to the workers who own and operate their enterprise to earn their livelihood. For example, a beautician running her beauty parlour from her residential premises or a doctor operating from his clinic at his residence etc.
2. Casual wage employment refers to a phenomenon where the workers are casually engaged in someone else's farm or project. For example, daily wage earners.
3. Regular employment refers to a phenomenon where workers are engaged by someone or by an enterprise (Public Sector/ Private Sector) and are paid their wages/ salary on a regular basis. For example, people working on a permanent basis in an enterprise/ school etc.

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.

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.

Unemployment refers to a situation in which all those who, owing to lack of work, are not working, but either seek work through employment exchanges, intermediaries, friends or relatives or by making application to prospective employers or express their willingness on availability for work under the prevailing condition of work and remuneration.
The consequences of unemployment in India are:

1. Unemployeds are not able to meet their financial obligations. So, this may lead to a decline in their standard of living.
2. Unemployment hampers the economic as well as the social status of society. Precious time lost in unemployment can never be compensated.
3. Underemployment is one of the serious consequence of unemployment. As on losing jobs people are compelled to take up jobs which do not fit their skills, experience and qualifications.

Women are paid fewer wages for the same work as compared to men because:

1. There are rules but these are not followed especially in informal sector.
2. There is a social prejudice which claims that males are more productive than females.
3. Males are more committed to their work life. Females have dual responsibility which reduces their commitment to their wok life.
4. Since females do not have complete financial responsibility, they agree to work for lower wages.
5. Males have better physical abilities as compared to females.

The main causes responsible for unemployment in India are:

1. Rapid growth of population in the economy has been a major cause. As a matter of fact the number of unemployeds have actually increased overtime rather than decreasing.
2. Rate of economic growth has been quite slower than what was anticipated, basically because of faulty planning.
3. Shortage of financial resources has been a big hindrance in employment generation. Further this had been augmented by the increasing control of the government for many years.

Measurement of Unemployment:

1. Usual Status (UPS): It includes only those people who are being unemployed for a long period of time. It gives the lowest estimate of unemployment.
2. Current Weekly Status: It takes one week as a reference period. According to it, a person is said to be employed for one week if he is employed only for a day during that week
3. Current Daily Status(CDS): It takes one day as a reference period. The aggregate count of unemployed days during the reference weeks is the numerator and the aggregate number of labour force days constitutes denominator.

S. No.		Rural Males	Rural Females	Urban Males	Urban Females
1.	UPS	24	22	46	89
2.	CWS	47	45	57	10
3.	CDS	90	93	81	117

Yes, Victor is an unemployed worker. He works for two hours a day but a major portion of the day he is looking for work and is unemployed. This implies that he is an underemployed worker. The situation of underemployment refers to a situation in which a person gets work for lesser time than the time he actually can and wants to work. According to the National Sample Survey Statistics, a person who is employed for less than 28 hours in a week is called underemployed. Victor could do jobs that are part time in nature like dropping news papers, working in a restaurant, delivering couriers, bank tellers, etc.

The employment generation programmes aim at poverty alleviation.
All these programmes aim at providing not only employment but also services in areas such as primary health, primary education, rural shelter, rural drinking water, nutrition, assistance for people to buy income and employment generating assets, development of community assets by generating wage employment, construction of houses and sanitation, development of wastelands and degraded lands. etc.

1. Formal and Informal Sector:

S. No.	Basic	Formal Sector	Informal sector
1.	Meaning	Those establishments which employ 10 or more workers are called formal sector establishments.	Those establishments which employ less than 10 workers are called Informal sector establishments.
2.	Caontact	There is a written contract between employer and employee which mentions all the terms and conditions of employment.	There is no written contract between employer and employee.
3.	Job Security	Workers in formal sector have a job security.	Workers in informal sector have no job security. They may be fired anytime.
4.	Other benefit	Workers in formal sector enjoy many other benefits like paid leave, maternity benefits, provident fund etc.	Workers in informal sector do not get any such benefit.

2. Seasonal and Disguised Unemployment:

S. No.	Basic	Seasonal Unemployment	Disguised Unemployment
1.	Meaning	When a person does not get job in a particular season i.e. during some part of the year, it is called seasonal unemployment.	When a person seems to be employed but is actually contributing nothing to total output, he is called disguised or hidden unemployment.
2.	Example from Rural Area	Farmers getting unemployed during off season.	A family of 8 is working in a field where only 6 people are required.
3.	Example from Urban area	An ice cream seller getting no work during winter season.	A person helping his father in shop but is actually not required.

1. Disguised unemployment: Disguised unemployment is typical phenomenon of Indian agriculture, where more people are working on a piece of land than required. They do not contribute to productive work and when withdrawn, do not result in a fall in output.
2. Seasonal unemployment: Seasonal unemployment is found primarily in agriculture sector where people do not get work for all the months in the year, due to the seasonal character of agriculture. During this time, they may move to urban areas in search of casual employment.