Question

How are the activities in the economy classified on the basis of employment conditions?

Answer 1

On the basis of employment conditions, economic activities can be divided into two categories:

1. Organised Sector: These businesses or workplaces are in the organised sector, and the period of employment is consistent. The government has registered these sectors. They must observe government rules and regulations. That’s why it’s known as the organised sector. Employees gain from employment security. They are supposed to work only for a set amount of time. If they work more, they are compensated with an additional income. They are granted leave, including salary, payment during leave, provident fund, and service grant. They also receive pensions upon retirement.
2. Unorganised Sector: The unorganised sector is a small and scattered unit. It is made from these. These units are mostly outside the government’s control. It does not follow the rules and regulations. There are low-paying jobs here. and are often not regular. There is no provision for working overtime, leave with pay, holiday, sick leave, etc. There is great uncertainty in employment. Workers can be removed from work without any reason. There is no protection in this employment, and there is no profit.