Definitions [1]
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. This ratio acts as an indicator for assessing the employment level in a particular country at any point of time. Higher the worker-population ratio higher is the engagement of people in the productive activities and vice-versa. Worker-population ratio is estimated by dividing the total work force by the total population and multiplying by 100. Algebraically,
`"Worker-Population Ratio" = "Total Workforce"/"Total Population" xx 100`
Key Points
Key Points: The Nature and Importance of Work in Society
- People work in farms, factories, offices, shops and from home, including IT and other remote work.
- Modern technology and Covid‑19 have expanded work-from-home and home-based production.
- Studying workers helps understand employment quality, national income contribution, and issues like exploitation and child labour.
Key Points: Workers and Employment
Employment means participating in economic activities that add to national income.
- A worker is anyone (paid or self‑employed) whose work contributes to output, including those temporarily not working.
- India’s workforce is mostly rural and male; much of women’s unpaid work at home and on farms is not officially counted as employment.
Key Points: Participation of People in Employment
Worker-population ratio tells how many people work out of the total population.
- In India, about 41 out of 100 people are workers; rural ratio is slightly higher than urban.
- Men’s participation is much higher than women’s, especially in cities.
- Much of women’s unpaid household and farm work is not counted as employment.
Key Points: Self-Employed and Hired Workers
- Self-employed: Own and run their own work (shops, farms, small businesses); this is the largest group in India.
- Casual wage workers: Paid daily/irregularly for temporary work (like construction labour), with little job security.
- Regular salaried employees: Have fixed, regular jobs in offices, factories, etc., with more stable income; more common in urban areas.
Key Points: Employment in Firms, Factories and Offices
- As the economy develops, workers move from agriculture (primary) to industry (secondary) and then to services (tertiary).
- Primary sector still employs the largest share of workers, especially in rural areas.
- In rural areas, most workers are in agriculture; in urban areas, most are in services and some in industry.
- Women are heavily concentrated in the primary sector; men are more spread across secondary and service sectors.
Key Points: Growth and Changing Structure of Employment
- GDP has grown faster than employment since 1950, especially from the late 1990s, creating a gap called jobless growth (more output without enough new jobs).
- Workers have shifted from primary (farm) work to secondary (industry) and especially services; primary employment fell from about 74% to about 46%, while secondary rose from about 11% to 25% and services from about 15% to 29%.
- Over time, many workers moved towards casual wage work (casualisation), which is insecure and less protected, though self‑employment still provides the largest share of jobs.
- Recently, there is some rise in regular salaried employment, likely due to growth of organised and service sectors and higher education/skills, improving access to more stable jobs.
Key Points: Informalisation of Indian Workforce
Informalisation of Indian workforce means most workers are in unorganised, insecure jobs instead of organised, protected ones.
- Formal sector: Government and larger private units (10+ workers) with better wages, job security and social security (PF, pension, maternity benefits, etc.).
- Informal sector: Small farms, tiny enterprises, self‑employed and casual labourers with low, irregular incomes and almost no legal or social protection.
- Around 2011–12, only about 6% of all workers were in the formal sector; about 94% worked in the informal sector.
- Informalisation makes workers vulnerable: they can be fired anytime, lack benefits and often live in poor conditions (slums/squatter settlements).
Key Points: Concept of Unemployment
- India’s unemployment is structurally and cyclically driven, with youth at the highest risk.
- Unemployment is measured by hours worked, with underemployment also common.
- Solutions include focused skill development, industrial growth, and targeted government schemes.
Key Points: Government and Employment Generation
- MGNREGA gives 100 days of guaranteed unskilled wage work to rural households each year.
- Government creates jobs directly (hiring in departments/public enterprises) and indirectly (its enterprises’ output makes private firms expand and hire).
- Many anti‑poverty schemes generate employment while providing basic services like health, education, housing, sanitation, roads and assets.
- Most new jobs are in services and are often informal, with weak social security, despite rapid GDP growth.
Important Questions [15]
- Define worker-population ratio.
- Identify, which of the following is the correct formula for calculating ‘Worker-Population Ratio’?
- Define Worker Population Ratio. Discuss its usefulness.
- State with valid reason whether the following statement is true or false: ‘Self employed workers are different from hired workers.’
- ‘Kavya works on her family farm and is neither paid in cash nor in the form of grains.’ Can she be categorized as a worker ? Give valid reasons in support of your answer.
- ‘Mr. Rishi, after completing his education, has joined his family business but his marginal productivity is zero.' Comment upon the employment status of Mr. Rishi.
- Which of the following is not a ‘factor payment’?
- Compare and analyse the sector-wise trends in employment, based on following information: Trends in Employment (Sector-wise) Sector 1999-2000 2011-12
- “In the late 1990's India experienced a widening gap between the growth of GDP and employment generation”. Discuss.
- Ram is an owner of a salon. He is temporaily absent from work due to injury. Can he be considered as worker? Explain.
- “In rural areas of India more members of a family are engaged on work, yet the gross income of the family is generally low.” Identify the type of unemployment
- What is Likely to Be the Impact of Efforts Towards Reducing Unemployment on the Production Potential of the Economy? Explain
- Explain the Meaning of Under-employment Equilibrium. Explain Two Measures by Which Full-employment Equilibrium Can Be Reached.
- 'Ram is able to get work only for two hours in a day. Rest of the day, he is looking for work.' Is he unemployed? What kind of job could person like Ram be doing?
- Unemployment is Reduced Due to the Measures Taken by the Government. State Its Economic Value in the Context of Production Possibilities Frontier.
Concepts [9]
- The Nature and Importance of Work in Society
- 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
- Informalisation of Indian Workforce
- Concept of Unemployment
- Government and Employment Generation
