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Employment : Growth, Informalisation And Other Issues

Question
CBSEENEC11009405

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

Solution

India is an agricultural country. A major section of population lives in rural areas and are dependent on agriculture as their main livelihood. When we see the economic history of the developed countries, we find that the population working in agricultural sector declines with the development of the economy. The percentage of working population increases in industrial and service sector. Before 1971, the development process was slow in India. In 1972-73 about 74% workforce was engaged in agricultural sector (Primary sector) and in 1999-2000 this proportion has declined to 60 percent service and secondary sectors are providing jobs to Indian workforce. The share of these sectors increased to 23.8% and 15.8%, respectively. Over the last forty years, the people moved from self employment and regular salaried employment to casual wage work. Self-employment is a major employment provider. It is due to casualisation of workforce.