What is Employment: Growth, Informalisation and Other Issues Class 11

Definition and Importance of Employment in Class 11 Economics

Employment refers to the condition where people engage in paid work or self-employment to earn a livelihood. In Class 11 NCERT Economics, understanding employment is crucial because it directly affects economic growth and social welfare.

• Employment includes both formal and informal jobs.
• It is a key indicator of economic health.
• Employment status influences income levels and living standards.

The chapter explains how employment figures help policymakers design better economic strategies to reduce poverty and improve quality of life.

Growth of Employment: Trends Across Sectors

Employment growth in India is uneven across three main sectors:

• Agriculture still employs the largest workforce but is shrinking due to mechanisation.
• Industry provides more stable jobs but hasn’t grown fast enough.
• Services sector shows the fastest employment growth, especially in IT and finance.

This sectoral shift impacts the nature and quality of jobs available.

What is Informalisation of Employment?

Informalisation means an increasing proportion of workers are employed in informal jobs without legal or social protections. Characteristics include:

• No fixed work hours or contracts
• Lack of social security benefits like provident fund or health insurance
• Lower wages and job insecurity

In India, about 80-90% of workers are in the informal sector. This trend poses challenges for workers’ welfare and economic stability. The chapter highlights the causes and consequences of informalisation.

Other Issues in Employment: Unemployment and Underemployment

Besides informalisation, the chapter discusses other major employment issues:

• Unemployment: People actively seeking work but unable to find jobs.
• Underemployment: Workers employed below their skill level or part-time involuntarily.

These problems affect economic growth and increase poverty. The chapter explains types of unemployment such as seasonal, structural, and disguised unemployment common in India.

Government Initiatives to Improve Employment Conditions

The Indian government has launched several schemes to tackle employment challenges:

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Guarantees 100 days of wage employment in rural areas.
• Skill India Mission: Focuses on training youth for better job opportunities.
• Start-Up India and Make in India: Promote entrepreneurship and industrial growth.

These initiatives aim to increase formal employment and reduce informalisation.

Worked Example: Calculating Employment Growth Rate

Suppose the number of employed persons in India was 450 million in 2010 and increased to 500 million in 2020. To find the employment growth rate over 10 years:

$$ \text{Growth Rate} = \frac{\text{Employment in 2020} - \text{Employment in 2010}}{\text{Employment in 2010}} \times 100 $$

$$ = \frac{500 - 450}{450} \times 100 = \frac{50}{450} \times 100 = 11.11\% $$

So, employment grew by 11.11% over 10 years, indicating slow but positive growth.