2.7.1 Definition of Occupational Structure
Occupational structure refers to the distribution of the workforce across various sectors of economic activity. An occupation is essentially an economic activity that provides a means of livelihood for those involved in it. While there are thousands of different occupations within an economy, they are generally categorized into three broad sectors:
- Primary Sector: This sector encompasses agriculture and related activities such as forestry, fisheries, poultry farming, and dairy farming.
- Secondary Sector: The secondary sector includes manufacturing industries, both large-scale and small-scale, as well as construction activities.
- Tertiary Sector: The tertiary sector involves activities like transportation, storage, communications, trade, commerce, and direct services.
The number and proportion of workers engaged in these various sectors within an economy constitute the occupational structure of that country. The contribution made by each of these sectors to the country’s Gross Domestic Product (GDP) is referred to as the sectoral composition of the economy.
2.7.2 Economic Development and Occupational Structure
Colin Clark, in his work “Conditions of Economic Progress,” argues that a close relationship exists between an economy’s development and its occupational structure. Economic progress is generally associated with specific and predictable changes in the occupational structure.
A.G.B. Fisher also reaches a similar conclusion, stating that “in every progressive economy, there has been a steady shift of employment and investment from ‘essential activities’ to secondary and tertiary activities.”
Therefore, there is a strong connection between a country’s occupational structure and its economic development, characterized by:
(a) A shift of workers from the primary sector to the secondary and tertiary sectors as a country develops.
(b) A decrease in the absolute number of people engaged in the primary sector and an increase in the secondary and tertiary sectors as economic development takes place.
2.7.3 Changes in Occupational Structure
Changes in occupational distribution of working force from 1951 to 2011-12 is given in Table 2.6.
Table 2.6 Occupational Distribution of Working Force in India 1951 to 2011-12 (Percentage)
Source: 1. Economic Survey, various issues.
2. Human Development Report 2015.
3. Economic Survey 2013-14.
Analysis
- 1. The rate of structural change in occupational distribution is gradual but consistent. The share of the primary sector in the total workforce has decreased from 72.1% in 1951 to 66.8% in 1991, and further to 47.2% in 2012-13. However, there is still a substantial reliance on agriculture, which should be reduced.
- 2. The share of the secondary sector increased from 10.7% in 1951 to 12.7% in 1991 and further to 24.7% in 2012-13.
- 3. The share of the tertiary sector increased from 17.2% in 1951 to 20.5% in 1991 and further to 28.1% in 2012-13.
- 4. Services in India are becoming a significant sector in terms of contributions to national income, foreign investment flows, trade, and employment.
The structural change in the composition of GDP indicates that India is progressing steadily. However, the pattern of occupational structure shows that India is still underdeveloped, with nearly 48.9% of the workforce engaged in agriculture, characterized by low productivity and uncertain employment. This situation may lead to low per capita income and widespread poverty in rural areas. It also implies that the high population pressure on land could impede improvements in agricultural productivity.
Objective Type Questions
1.What does occupational structure refer to?
a) The distribution of workforce across various sectors of economic activity.
b) The number of total occupations in an economy.
c) The percentage of GDP contributed by agriculture.
d) The total population of a country.
Answer: a) The distribution of workforce across various sectors of economic activity.
2.Which sector includes agriculture and related activities like forestry and fisheries?
a) Tertiary Sector
b) Secondary Sector
c) Primary Sector
d) Quaternary Sector
Answer: c) Primary Sector
3.Which sector encompasses manufacturing industries and construction activities?
a) Tertiary Sector
b) Secondary Sector
c) Primary Sector
d) Quinary Sector
Answer: b) Secondary Sector
4.The contribution made by each sector to a country’s GDP is known as:
a) Occupational distribution
b) Sectoral composition
c) Economic structure
d) Workforce ratio
Answer: b) Sectoral composition
5.What is the relationship between economic development and occupational structure?
a) Economic development has no impact on occupational structure.
b) Occupational structure influences economic development.
c) Economic development is unrelated to changes in the workforce.
d) Economic development is associated with changes in occupational structure.
Answer: d) Economic development is associated with changes in occupational structure.
6.According to Colin Clark, what happens to occupational structure as a country develops?
a) It remains static.
b) Workers shift from the primary sector to the tertiary sector.
c) Workers shift from the secondary sector to the primary sector.
d) There is no predictable change in occupational structure.
Answer: b) Workers shift from the primary sector to the tertiary sector.
7.What is the trend in the share of the primary sector in the total workforce from 1951 to 2012-13?
a) It has increased significantly.
b) It has remained constant.
c) It has gradually decreased.
d) It has doubled.
Answer: c) It has gradually decreased.
8.Which sector has seen an increase in its share of the total workforce from 1951 to 2012-13?
a) Primary Sector
b) Secondary Sector
c) Tertiary Sector
d) Quaternary Sector
Answer: c) Tertiary Sector
9.What does the increasing share of the tertiary sector indicate?
a) A shift toward more manual labor.
b) A decrease in national income.
c) A trend toward industrialization.
d) The growing importance of services in the economy.
Answer: d) The growing importance of services in the economy.
10.What is the consequence of a high percentage of the workforce engaged in agriculture with low productivity and uncertain employment?
a) High per capita income in rural areas.
b) A decrease in population pressure on land.
c) Widespread poverty in rural areas.
d) Improved agricultural productivity.
Answer: c) Widespread poverty in rural areas.