TOPIC 1
EMPLOYMENT
Any activity which helps an individual to earn their living is known as
Employment. It can be classified into two categories:
(1) Self employment (Self employed workers)
(2) Wage employment (Hired workers)
Important
Employment is defined as any activity which can help an individual to earn
a living.
Self-employed workers
Workers who own and operate an enterprise to earn their livelihood are known
as self-employed workers. The shop of a grocery store owner can be one such
example. About 52% people in India belong to the category of self-employed
workers.
Example 1. Meena is a housewife. Besides taking care of household chores,
she works in the cloth shop which is owned and operated by her husband.
Can she be considered a worker? Why? [NCERT]
Ans. Meena is a self-employed worker. Even though she is working in her
husband's cloth shop, she will still be considered as a worker.
Hired Workers
Hired workers can be of two types:
(1) Casual wage labourers: When labourers are casually engaged in others’
farms and get a remuneration in return for the work done. The construction
workers form the part of the casual wage labourers. They account for about
25% of India’s workforce.
(2) Regular salaried employees: When a worker is engaged by someone or an
enterprise and gets wages on a regular basis are known as regular salaried
employees. Workers like the civil engineer working in the construction
company account for 23% of India’s workforce.
Example 2. Are the following workers a beggar, a thief, a smuggler a
gamblers? Why? [NCERT]
2 Economics Class XII
Click here to access Educart complete book of Economics (Special Discount)
Ans. No, they are not workers because they are not working or are not engaged
in any productive a activity which may contribute to the GDP of the country.
Caution
Students usually get confused between casual wage labourers and regular
salaried employees. They should understand that casual wage labourers are
engaged in other people’s farms and get a remuneration in return for the work
they do whereas Regular salaried employees are engaged by someone and
get paid wages on a regular basis.
Example 3. Those who work in their own establishment using their own
resources are called ............... .
(a) hired workers (b) casual workers
(c) regular workers (d) self-employed
Ans. (d)self-employed
Explanation: Workers who own and operate an enterprise to earn their
livelihood are known as self-employed workers.
Example 4. Who is a worker? [NCERT]
Ans. A worker is an individual who is doing some productive employment to earn
a living.
Example 5. Are the following workers a beggar, a thief, a smuggler a gambler?
Why? [NCERT]
Ans. No, they are not workers because they are not working or are not engaged in
any productive activity which may contribute to the GDP of the country.
Distribution of Self-employed and Hired Workers in India
The self-employed and casual wage labourers are found more in rural areas than in
urban areas. In the urban areas, both self -employment and regular wage salaried
jobs are greater. In the rural areas, since the majority of those depending on farming
own plots of land and cultivate independently, the share of self employed is greater.
The nature of work in urban areas is different as everyone cannot run
factories, shops and office of various types. Moreover, enterprises in urban
areas require workers on a regular basis.
Employment and Unemployment in India 3
Click here to access Educart complete book of Economics (Special Discount)
Distribution of Employment by Region
Urban workers
Self-employed Regular salaried
38.0% employees
47.0%
Casual wage
labourers
15.0%
Regular salaried
Rural workers employees
13.0%
Casual wage
labourers
Self-employed
58.0% 29.0%
(1) The self-employed and casual wage labourers are found more in rural areas
than in urban areas. In the urban areas, both self -employment and regular
wage salaried jobs are greater. In the rural areas, since the majority of those
depending on farming own plots of land and cultivate independently, the
share of self employed is greater.
(2) The nature of work in urban areas is different as everyone cannot run
factories, shops and offices of various types. Moreover, enterprises in
urban areas require workers on a regular basis.
Distribution of Employment by Gender
Male workers
Casual wage
labourers
24.0%
Self employed
Regular salaried 52.0%
employees
24.0%
4 Economics Class XII
Click here to access Educart complete book of Economics (Special Discount)
Female workers
Cause wage
labourers
27.0%
Self employed
Regular salaried 52.0%
employees
21.0%
(1) Self employment is a major source of livelihood for both men and women
as this category accounts for more than 50% of the workforce.
(2) Casual wage work is the second major source for both men and women, a
little more so for the latter (24-27%).
(3) When it comes to regular salaried employment, both women and men are
...
found to be engaged in greater proportion. Men form 24% whereas women
form 21%. The gap between men and women is very small.
Employment and Unemployment in India 5
OBJECTIVE Type Questions
[ 1 mark ]
Multiple Choice Questions
1. Poverty alleviation programmes aim at providing not only employment
but also services in areas such as:
(a) Primary health, primary education, rural drinking water, nutrition.
(b)Assistance for people to buy income and employment generating
assets, development of community assets by generating wage
employment.
(c) Construction of houses and sanitation, laying of rural roads,
development of wastelands.
(d)All of the above. [DIKSHA]
Ans. (d)All of the above
Explanation: Poverty alleviation programmes provide employment
and services such as in the areas of primary health, education and
development of community assets by generating wage employment,
development of wastelands, construction of rural roads, etc.
Assertion-Reason Questions
In the following questions a statement of assertion followed by a statement
of reason is given. Choose the correct answer out of the following choices:
(a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct
explanation of Assertion (A).
(b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is true, but Reason (R) is false.
(d)Assertion (A) is false, but Reason (R) is true.
2. Assertion (A): Unemployment and poverty are inseparable twins.
Reason (R): Unemployment is the root cause of all socio-economic
evils. [CBSE SQP 2022]
Ans. (c) Assertion (A) is true, but Reason (R) is false.
[CBSE Marking Scheme SQP 2022]
Explanation: Unemployment and poverty are inseparable twins but we
cannot consider unemployment as the root cause of all socio-economic
6 Economics Class XII
Click here to access Educart complete book of Economics (Special Discount)
evils rather poverty can be considered as the root cause of all the socio-
economic evils.
CASE BASED Questions (CBQs)
[5&6 marks ]
Read the following passages and answer the question that follows:
3. Unemployment is a major economic and social issue that affects individuals,
families, and entire communities. When individuals are unemployed, they
face financial challenges that can lead to increased poverty, debt, and
stress. Moreover, unemployment can cause a sense of hopelessness and
loss of self-esteem, which can further exacerbate the problem.
Employment, on the other hand, offers individuals a sense of purpose,
financial stability, and opportunities for personal growth. It is a critical
component of economic development and is essential for the growth
and stability of businesses and communities.
In recent years, the global economy has experienced significant changes
that have impacted employment trends. For example, advances in
technology have led to the automation of many jobs, which has resulted
in job losses for many individuals. Additionally, the rise of the gig economy
has led to a shift away from traditional employment models, with many
workers now engaged in temporary, contract, or freelance work.Despite
these changes, employment remains a critical issue for governments,
businesses, and individuals. Governments must create policies and
programs that support job creation and ensure that workers have access
to the education and training they need to succeed in the job market.
Businesses must also play a role in creating employment opportunities,
while individuals must be willing to adapt to changing employment trends
and acquire the skills they need to succeed in the modern workforce.
Overall, the issue of employment and unemployment is a complex one
that requires a collaborative effort from all stakeholders. By working
together, we can create a more stable, prosperous, and equitable society
for all.
(A) What are some of the challenges faced by individuals who are
unemployed?
(B)
What are some of the changes in the job market that have
Employment and Unemployment in India 7
Click here to access Educart complete book of Economics (Special Discount)
impacted employment trends in recent years?
Ans. (A)Individuals who are unemployed face financial challenges that can
lead to increased poverty, debt, and stress. They may also experience
a sense of hopelessness and loss of self-esteem, which can exacerbate
the problem.
(B)Advances in technology have led to the automation of many jobs,
resulting in job losses for many individuals. Additionally, the rise of
the gig economy has led to a shift away from traditional employment
models, with many workers now engaged in temporary, contract, or
freelance work.
VERY SHORT ANSWER Type Questions (VSA)
[ 1 mark ]
4. What is cyclical unemployment?
Ans. Cyclical unemployment is a lack of employment due to the changes in
an economy's business cycle.
SHORT ANSWER Type-I Questions (SA-I)
[ 2 marks ]
5. Since independence the union and State governments have played an
important role in generating employment or creating opportunities
for employment generation. Their efforts can be broadly categorised
into direct and indirect. Explain them.
Ans. Since Independence, the Union and the State governments have played
an important role in generating employment or creating employment
opportunities. It can be broadly classified into two categories:
(1) D
irect employment: In this category, the government employs
people in various departments for administrative purposes. It also
runs industries, hotels and transport companies, and hence, provides
employment directly to workers.
(2) I ndirect employment: When the output of goods and services
from government enterprises increases, then private enterprises
which receive raw materials from government enterprises will also
increase their output and hence increase the number of employment
opportunities in the economy.
8 Economics Class XII
Click here to access Educart complete book of Economics (Special Discount)
SHORT ANSWER Type-II Questions (SA-II)
[ 3 & 4 marks ]
6. ‘Casual wage work is the major source of employment in rural India’.
Defend or refute the given statement with valid reason.
[CBSE SQP 2022]
Ans. The given statement is refuted. In rural areas, non-farm job opportunities
are limited. People generally do not show preference to acquire skill and
training for non-farm occupation. They prefer to stay on family farms
and fields as self-employed.
[CBSE Marking Scheme SQP 2022]
LONG ANSWER Type Questions (LA)
[ 5 & 6 marks ]
7. Study the following chart showing the Growth of Employment and
Gross Domestic Product and analyse the trend of the two variables
from 1990-2012.
Growth of Employment and Gross Domestic
Product, 1951-2012 (%)
10
9 8.7
8 6.1 7.8
7 5.7 5.8 6.1
6
5 3.6 3.4
4.22.8 3.3 4.8
4
3 1.991.841.73 1.89
2 0.39 1.5 2.28
1 2.03 0.98 1.12
0.85
0 0.28
1951-56
1956-61
1961-66
1969-74
1974-79
1980-85
1985-90
1990-92
1997-2000
1999-2005
2005-2010
2010-2012
GDP Employment
Ans. The period between 1990 to 2012 had been a significant one. Introduction
of economic reforms in India has changed everything in India. Variables
shown in the given graph show that GDP growth rate has taken an upward
trend over the years whereas the situation of employment growth rate
has seen major fluctuations while going down in overall trend.
GDP growth rate has increased from a meagre 3.4% in 1991 to 7.8% in
2012. However the employment growth rate has shown declining trends
from 1.5% in 1991 to 1.12% in 2012. Between the period 1999-2005 the
Employment and Unemployment in India 9
Click here to access Educart complete book of Economics (Special Discount)
employment generation rate was at peak since independence i.e., 2.28%
p.a. with the corresponding GDP growth rate standing at a decent 6.1%
p.a.
The gap between the two variables is maximum between the period
2005-10 when the employment growth rate hit the lowest in history
of India i.e., 0.28%. In the same period the GDP growth rate had hit the
highest level since independence to the tune of 8.7% p.a. The Indian
economy has witnessed the peculiar phenomena of ‘jobless growth’
over all these years. Learning from the situation, the government had
put in serious efforts on the employment front and brought it to a level
of 1.12% p.a. between the period 2010-12.
In all the period between 1990-2012 has been a real roller coaster
ride for the Indian economy on the two fronts of GDP and employment
growth rate.
10 Economics Class XII
I relied on NCERT as the Bible. But I also
“ referred to different difficulty level Q's
like from PYQs and new pattern Q books
that my teachers recommended.
It is also a must!
LAKSHAY BANSAL
(98.2%) CBSE Commerce Topper 2023
”
According to this year's topper Lakshay Bansal, PYQs and New
pattern Q's all difficulties is a must for each Chapter. Keeping
this in mind, our special book covers the below things:
Ch-wise Past 10 Years Q's
(with explanations)
Ch-wise 100+ New Pattern Q's
(all difficulties with explanations)
CBSE Paper Checker Tips
Topper Answers
VIEW BOOK
These books are the best reference books that every
CBSE student should have so they can cover each
Rita Gupta Chapter in a structured manner, along with school
HOD, Social Science teaching. The best part I found is the quality of
Reputed CBSE School answers & coverage all possible Questions
I scored 99.2% studying from Educart books. They
know exactly what the students need and it really
helped me do focused NCERT-driver revision and Abhay Sharma
practice. Must buy book!!! Regional Topper
CBSE 2022-23
