Jobless growth occurs when the economy is growing faster, making more goods and services, but it’s not creating enough new jobs. This has been happening in our economy since economic reforms began in 1991. Essentially, we’re producing more, but it’s not leading to more job opportunities for people. So, there’s a gap between how fast the economy is growing and how many jobs are being created, and that’s what we mean by jobless growth.


1. Casualisation of Workforce:

Casualisation of the workforce means that over time, more people are getting hired on a casual basis rather than having permanent or self-employed jobs. This shift has been happening in the Indian economy from 1972 to 2000.

2. Informalisation of Workforce:

Employment can be split into two types: Formal Sector and Informal Sector.

  • Formal Sector:
    • This is the organized sector, including public and private enterprises with 10 or more workers.
    • Workers here are called formal workers and enjoy social security benefits.
    • They can form trade unions and are protected by labor laws.
    • About 15.6% of the total workforce is in the formal sector.
  • Informal Sector:
    • This is the unorganized part, including private enterprises with fewer than 10 workers (e.g., small business owners, farmers).
    • Workers here are called informal workers and don’t have social security benefits.
    • They can’t form trade unions and lack protection from labor laws.
    • Around 33.5% of the total workforce is in the informal sector (as of the Economic Survey 2014-15).
    • Efforts by the International Labour Organisation (ILO) and the Indian government aim to modernize the informal sector.

Note: Since the economic reforms in 1991, more workers have joined the informal sector. Despite the uncertainties in this kind of work, a surprisingly high percentage of the total workforce prefers informal employment.

Objective Type Questions

  1. What does casualisation of the workforce mean?
    A. Permanent employment growth
    B. Shift to more casual hiring over time
    C. Decrease in total workforce
    D. Introduction of self-employment
    Answer: B
  2. In the formal sector, how are workers described?
    A. Informal workers
    B. Casual workers
    C. Self-employed
    D. Formal workers
    Answer: D
  3. What characterizes the informal sector in terms of organization?
    A. Highly organized
    B. Unorganized
    C. Unionized
    D. Large-scale enterprises
    Answer: B
  4. What is the main criterion for the formal sector?
    A. Less than 10 workers
    B. Social security benefits
    C. Casual hiring
    D. Public enterprises only
    Answer: B
  5. What percentage of the total workforce is employed in the formal sector?
    A. 15.6%
    B. 33.5%
    C. 50%
    D. 10%
    Answer: A
  6. Who are considered informal workers?
    A. Public sector employees
    B. Workers with social security benefits
    C. Workers in private enterprises with fewer than 10 employees
    D. Trade union members
    Answer: C
  7. What protection do workers in the formal sector have, according to the information provided?
    A. No protection
    B. Protected by labor laws
    C. Social security benefits
    D. Informal workers are not protected
    Answer: B
  8. Why has there been a rise in informalization of workers since 1991?
    A. Lack of job opportunities
    B. Economic reforms
    C. Decline in the total workforce
    D. International labor strikes
    Answer: B
  9. What sector has seen efforts for modernization initiated by the International Labour Organisation (ILO) and the Indian government?
    A. Formal sector
    B. Public sector
    C. Private sector
    D. Informal sector
    Answer: D
  10. Despite uncertainties, why do a significant percentage of the total workforce prefer informal employment?
    A. Lack of other options
    B. High social security benefits
    C. Trade union protection
    D. Economic stability
    Answer: A

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