Self-employed and Hired Workers

• Worker-population ratio alone does not show workers’ status or working conditions.
• Status of workers in an enterprise reveals one dimension of quality of employment.
• Status indicates attachment to the job and authority over the enterprise and co-workers.

Workers who own and operate an enterprise to earn their livelihood are known as self-employed.

When a worker is engaged by someone or an enterprise and paid his or her wages on a regular basis, they are known as regular salaried employees.

• The common view is that only paid agricultural labourers, factory workers, bank and office staff are workers.
• The self-employed people like pavement vegetable vendors, and professionals such as lawyers, doctors and engineers, are also workers.

• Self-employed: own and operate enterprises; example – cement shop owner; about 57% of India’s workforce; major source of livelihood for both men and women, accounting for more than 50% of the workforce.
• Casual wage labourers: casually engaged in others’ farms and get remuneration for work done; example – construction worker; about 22% of India’s workforce; considered the most vulnerable group.
• Regular salaried employees: engaged by enterprises and paid regularly; example – civil engineer in a construction company; 21% of India’s workforce; 24% of men and 17% of women in this category; gender gap is small.

• Self-employed workers are more in rural areas than in urban areas.
• In rural areas, many depending on farming own land and cultivate independently, so self-employment share is high.
• In urban areas, both self-employment and regular salaried jobs are greater because enterprises need workers on a regular basis and not everyone can run factories, shops and offices.

• Self-employment is the largest source of employment for both men (54%) and women (67%).
• Regular salaried employment: Men 21%, Women 16%.
• Casual wage labour: Men 25%, Women 17%.

• Rural workers: Self-employed 65%, Regular salaried 13%, Casual wage labour 22%.
• Urban workers: Self-employed 40%, Regular salaried 48%, Casual wage labour 12%.
• Self-employment is higher in rural areas, while regular salaried jobs are more common in urban areas.

• Quality of employment is understood by looking at workers’ status.
• Self-employed form the largest share of the workforce and dominate both rural areas and total male and female employment.
• Casual wage labourers form about one-fifth of workers and are considered most vulnerable.
• Regular salaried employees form about one-fifth of workers with a small gender gap.
• Self-employed persons and professionals are also counted as workers, not only formal paid employees.