Question

NCERT Solutions Class 12, Economics, Indian Economic Development, Chapter- 6, Employment: Growth, Informalisation And Other Issues

To effectively understand Class 12 Economics and excel in board exams and competitive tests, it is beneficial to utilize NCERT Solutions. Developed by experts, these resources encompass all important concepts from the chapters and are specifically aligned with the CBSE curriculum, offering comprehensive coverage and vital support for your academic journey.

In these NCERT Solutions for Class 12 Economics, we have discussed all types of NCERT intext questions and exercise questions.

Concepts covered in Class 12 Economics, Indian Economic Development, Chapter- 6 Employment: Growth, Informalisation And Other Issues, are-

• Introduction
• Workers and employment
• Participation of people in employment
• Self-employed and hired workers
• Employment in firms, factories and offices
• Growth and changing structure of employment
• Formal sector employment

Our NCERT Solutions for Class 12 Economics provide thorough explanations that help students tackle their homework and assignments. By fully mastering and practicing the concepts from each chapter through these solutions, you can position yourself to earn high marks in your exams. Begin your study journey today for academic excellence.

Easily access all solutions and practice questions to jumpstart your preparation and achieve academic success.

Answer 1

NCERT Solutions Class 12, Economics, Indian Economic Development, Chapter- 6, Employment: Growth, Informalisation And Other Issues

1. Who is a worker? 

Solution:

A worker is said to be a person who is hired to perform work under a service contract.

• People work to earn an income. A man or woman who's concerned in manufacturing interest contributing to the float of products and offerings withinside the financial system is referred to as a worker. 
• In different words, an employee appears as a monetary agent who contributes to the manufacturing of products and offerings, thereby, to the GDP all through a specific year. An employee renders offerings to others and gets rewards withinside the shape of wages, salaries or in kind. 
• Hence, we will say that once a man or woman is engaged in a manufacturing interest or self hired and contributes to the era of GDP, then that man or woman is called a worker. For example, a doctor, an engineer operating in a factory, etc.  

2. Define worker population ratio.

Solution:

The number of people employed per thousand people is known as the worker population ratio. The Worker Population Ratio is a metric for assessing the country's employment condition. 

This is actively contributing to the manufacturing of products and offerings. It is measured with the aid of using the ratio among a particular country’s team of workers and its overall populace. This ratio acts as a trademark for assessing the employment stage in a specific use of at any factor of time. Higher the employee-populace ratio better is the engagement of humans withinside the effective sports and vice-versa.

The worker population ratio is expected with the aid of dividing the full workforce pressure with the aid of using the full populace and multiplying with the aid of using 100. Algebraically, 

Worker population ratio = (total workforce/ total population) x 100

3. Are the subsequent people- a beggar, a thief, a smuggler, a gambler? Why?

Solution:

No, a beggar, a thief, a smuggler, a gambler can't be referred to as people. An employee is concerned in a manufacturing interest that contributes to the GDP of a us of a. As none of them (a beggar, a thief, a smuggler and a gambler) are concerned in any criminal monetary manufacturing interest that contributes to the countrywide earnings of workers, hence, none of them may appear as people. 

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.

Solution:

The cashier in Mother Dairy is the odd one as he is salaried.

5. The newly rising jobs are observed generally with inside the _____ Sector (provider/manufacturing).

Solution:

The newly rising jobs are observed generally with inside the provider quarter. The provider quarter is taking a lead over the producing quarter as a supply of employment. It consists of trade, commerce, banking, insurance, fitness and different offerings. These offerings are growing at a quicker tempo than the producing and different allied manufacturing sports. This is due to the globalization of the financial system. 

6. A status quo with 4 employed people is referred to as _______ (formal/casual) quarter status quo.

Solution:

An status quo with 4 employed people is referred to as the casual quarter status quo. A casual quarter is an unorganized quarter of the financial system. It consists of all establishments that hire much less than 10 people, besides farming and self employment ventures. Therefore, an status quo with 4 employed people is referred to as the casual quarter status quo. 

7. Raj goes to school. When he isn't always in school, you may discover him operating in his farm. Can you keep in mind him as an employee? Why?

Solution:

Raj certainly qualifies as a worker. This is because his effort contributes to the farm's overall productivity. Raj is a worker because, as suggested by the definition of worker, a person who is involved in an economic activity or assists anybody in an economic activity and, as a result, contributes to the country's GDP is considered a worker. 

8. Compared to city girls, greater rural girls are observed operating. Why?

Solution:

In rural regions, over 30% of the workforce is female, but in metropolitan areas, just 14% of the labour is female. This shows that, as compared to urban women, rural women make up a larger proportion of the female workforce. On the one hand, rural women are less educated, unskilled, and low productive; on the other hand, urban women are more educated, skilled, and productive, and have a better chance of finding work. Surprisingly, urban women make up a smaller proportion of the female workforce than their rural counterparts. 

The causes for the low proportion of urban ladies in the total female workforce are as follows:

1) Because agricultural and associated jobs do not need a high level of expertise or specialisation, rural women work on farms to support their families.

2) Because rural poverty is more common than urban poverty, rural women are forced to work in low-wage employment in order to maintain their families' livelihoods.

3) Because urban families typically make a greater income than rural families, and because poverty in urban regions is not as prevalent as it is in rural areas, there is less of a need for female members to seek employment.

4) The choice to work by female family members is based on the family's decision rather than her own.

5) While female literacy in India is rising, it still has to improve significantly before urban women account for a larger part of the overall female workforce.

9. Meena is a housewife. Besides looking after family chores, she works withinside the fabric keep that's owned and operated with the aid of using her husband. Can she be taken into consideration as an employee? Why?

Solution:

A man or woman who's concerned withinside the manufacturing interest and contributes to the era of GDP is called employee. As right here Meena works withinside the fabric keep to guide her husband and contributes to GDP with the aid of rendering her offerings, so, she may be taken into consideration as an employee. 

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

Solution:

Shoe shine boy as he is self-employed.

Answer 2

11. The following desk suggests distribution of team of workers in India for the year 1972-73. Analyse it and provide motives for the character of team of workers distribution. You will be aware that the records is bearing on the state of affairs in India 30 years ago!

Place of Residence	Workforce (in millions)
	Male	Female	Total
Rural	125	69	195
Urban	32	7	39

Solution:

The overall team of workers in India with inside the year 1972-73 become 234 million that consists of 195 million team of workers of rural and 39 million of the city populace. This suggests an extra involvement of the rural team of workers comprising 83 % of the full team of workers in comparison to 17% of the city team of workers. This is due to the fact a majority of rural populace become engaged in agricultural and allied sectors. 

The rural team of workers accommodates 64% of the male team of workers and 36% of the lady team of workers. In contrast, the city team accommodates approximately 82% of male team of workers and 18% of the lady team of workers. The participation of adult males in each rural in addition to with inside the city regions is better than the ladies due to the shortage of possibilities to be had to girls for obtaining training. Also, households frequently discouraged lady contributors to take in the process and, consequently, girls have been limited to family works most effectively. 

Comparing city lady paintings pressure with that of the agricultural lady team of workers, we will finish that the ladies with inside the rural regions fashioned 36 % of the team of workers, while, the ladies with inside the city regions fashioned most effective 18% of the team of workers. In the agricultural regions, no matter a majority of the populace become engaged in farming and allied sports, agricultural quarter had low productivity. Consequent to the low productivity, rural humans had low profits that in addition led to sizable poverty with inside the rural regions. Thus, it is able to be concluded with the aid of using analysing the above records that Indian financial system suffered from low productivity, acute unemployment and sizable poverty, disguised unemployment in agricultural quarter and occasional lady participation charge with inside the team of workers 30 years ago.

12. The following desk suggests the populace and employee populace ratio for India in 1999-2000. Can you estimate the team of workers (city and overall) for India? 

Region	Estimated of population (in crores)	Worker population ratio	Estimated no. of workers (in crores)
Rural	71.88	41.9	\(\frac{71.88}{100} \times 41.9 = 30.12\)
Urban	28.52	33.7	?
Total	100.40	39.5	?

Solution:

Region	Estimated of population (in crores)	Worker population ratio	Estimated no. of workers (in crores)
Rural	71.88	41.9	\(\frac{71.88}{100} \times 41.9 = 30.12\)
Urban	28.52	33.7	\(\frac{28.52}{100} \times 33.7 = 9.61124\)
Total	100.40	39.5	\(\frac{100.40}{100} \times 39.5 = 39.658\)

Estimated no of workers in urban areas = \(\frac{28.52}{100} \times 33.7 = 9.61124\)

Total workforce in India = \(\frac{100.40}{100} \times 39.5 = 39.658\) 

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

Solution:

Regular salaried workers are more prevalent in urban than rural locations because:

(i) Regular paid employees are individuals with a certain degree of education and professional training, both of which are unavailable in rural areas. Regular salaried employees must also have the necessary professional abilities.

(ii) Due to various supportive facilities, such as infrastructure development, transportation and communication facilities, etc., MNCs are only concentrated in urban areas. As a result, there are more career opportunities in cities.

(iii) Since agriculture is the main occupation of the rural population, they are unwilling to take the risk of working as regular salaried employees.

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

Solution:

Less women work in regular salaried positions because:

(i) Women's literacy rates are quite low, and they lack the necessary professional qualifications for regular salaried employment.

(ii) Indian households discourage women from entering the workforce to take regular paying jobs in established organisations.

(iii) Female workers favour self-employment over traditional salary employment.

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

Solution:

Primary, secondary and tertiary sectors are collectively forms the occupational structure of an economy.

(i) Primary sector is the main source of employment for the majority of workers in India. 44.6% of the total work force is employed in primary sector while 24.4% and 31.0% of the total work force are employees in secondary sector and tertiary sector respectively. Majority of the workers are employed in primary sector followed by tertiary sector and secondary sector.

(ii) 59.8% of the population in the rural areas are employed in primary sector followed by 20.4% in secondary sector and 19.8% in tertiary sector. In the rural area primary sector is the prime source of employment

(iii) 6.6% of the population in the urban areas are employed in primary sector followed by 34.3% in secondary sector and 59.1% in tertiary sector. In the urban areas tertiary sector is the most important source of employment.

(iv) 40.7% of male population in India are engaged in primary sector followed by 32.8% in tertiary sector and 26.5% in secondary sector. Majority of the male worker are employed in primary sector and tertiary sector

(v) 57.1% of female population in India or engaged in primary sector followed by 25.2% in tertiary sector and 17.7% in secondary sector. Major of females worker are employed in primary sector and tertiary sector.

We can conclude that majority of the work force is employed in primary sector. The share of service sector is also increasing which indicates that to it has significant share in the country’s GDP. It has helped to diversify the economy by reduce its dependence on agriculture and manufacture. Growth of the sector indicates that country’s has pool of educated and skilled workers.

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

Solution:

It is true that not much of the changes have been observed in the distribution of workforce across various industries. The reason behind this is that the plans did not emphasise the need for development of:

(a) non-agricultural rural employment industries.

(b) small scale, village and cottage industries.

Answer 3

17. Do you think during 1950-2010, employment generated in the country is commensurate with the growth of GDP in India? How?

Solution:

In last 50 years the employment generated in the country is not commensurate with the growth of GDP in India so we can call it as jobless growth.

Jobless growth is defined as a situation in which the overall growth rate of GDP in the economy is accelerated but it is not accompanied by commensurate expansion in employment opportunities.

It means that the economy is able to produce more goods and services without generating additional employment.

Since the starting of economic reforms is 1991 our economy is facing a gap between GDP growth rate and employment growth rate so we call it jobless growth.

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

Solution:

Yes, it is necessary to generate employment in formal sector rather than in the informal sector because:

(i) The formal sector provides social security benefits like pension, provident fund, gratuity, etc.

(ii) The workers and enterprises in the formal sector have regular income as compared to the informal sector.

(iii) Income earned in formal sector is more than that in the informal sector.

(iv) The formal sector enterprises use updated and better technologies than the informal sector.

(v) Generating employment in formal sector will help 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 be doing?

Solution:

No, he is not unemployed but he is under employed because his full capacity is not been utilised. So, he comes under the category of casual worker.

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

Solution:

The activities that I will suggest for employment generation are:

(i) I will advise the village panchayat at to consider the poverty alleviation programmes of government, which helps in employment generation opportunities.

(ii) To provide technical knowledge and modern know-how to the rural workers so that their productivity could be increased and they could accept the modernisation.

(iii) To make finance and credit available to ta cheap rates and in simple way so that the rural people can start small scale industries.

(iv) To develop community assets by generating wage employment through various activities like construction of houses, financial assistance for constructing houses, etc.

21. Who is a casual wage labourer?

Solution:

A casual worker is one who works occasionally throughout the year. The employers do not regularly hire the casual employees, who labour for a few months and are paid for the task they perform. These are typically the unskilled labourers.

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

Solution:

Informal Sector:

(i) It is said to be an unorganised sector of an economy which consists of all those private sector enterprises which employ less than 10 workers. Example: agriculture labourers, farmers, owners of small enterprises, etc.

(ii) The workers of this sector are therefore called informal workers.

(iii) The workers are not entitled to any social security benefits.

(iv) The workers cannot form trade union as well and are also not protected by the labour laws.