Chapter 7 Employment Growth Informalisation and Other Issues Case Study Questions

Please see Chapter 7 Employment Growth Informalisation and Other Issues Case Study Questions and answers below. We have provided Case Study Questions for Class 11 Economics with answers for all chapters. Students should read the case study for Chapter 7 Employment Growth Informalisation and Other Issues which is an important chapter in Class 11 Economics and then attempt the questions provided below. Our teachers have provided answers too so that students can check their solutions.

CASE STUDY-1

Economic Survey 2020: The survey said the number of self-employed, regular wage earners and casual labourers have come down by 17 lakh in six years till 2017-18. Quoting various government sources, it pegged India’s workforce at 47.12 crore in FY18 compared with 47.29 crore in FY12, even as employment was getting more formal in nature. There was also a drop in female employment in the overall job space. From 12.91 crore in 2011-12, their number came down  to 10.85 crore in 2017-18. Stressing on the need to set things right, the survey said, “In an era of globalisation, no country can develop and achieve its full potential if half of its population is locked in non-remunerative, less productive and noneconomic activities”. The survey also found that the number of self-employed people, too, came down during the period to 24.21 crore from 24.54 crore; but that is mostly due to a significant drop in the number of ‘unpaid family labour’ category.

Questions:

Question. A situation where percentage of workforce in the formal sector tends to decline and that in the informal sector tends to rise is known as:
(a) Informalisation
(b) Casualisation
(c) Jobless growth
(d) none of these 

Question. An arrangement where a worker uses his own resources to make a living is known as:
(a) Wage employment
(b) Regular employment
(c) Casual employment
(d) Self employment

Question. All non-farm casual wage labourers who work for more than one employer such as construction workers and head-load workers are _______ . (formal/informal) sector workers.  

Question. Less employment of females in comparison to males is an indication of:
(a) Economic backwardness
(b) Social backwardness
(c) Both a and b
(d) None of these 

CASE STUDY-2

In the course of economic development of a country, labour flows from agriculture and other related activities to industry and services. In this process, workers migrate from rural to urban areas. Eventually, the industrial sector begins to lose its share of total employment as the service sector enters a period of rapid expansion. In the last four decades, people have moved from self-employment to casual wage work. Yet, self-employment continues to be the major employment provider. Scholars calls the process of moving from self-employment and regular salaried employment to casual wage work as casualization of workforce. This makes workers highly vulnerable.

Questions:

Question. The newly emerging jobs are mostly found in the _________ sector. 

Question. __________ of workforce is moving from self-employment and regular salaried employment to casual wage work. 

Question. An establishment, with four hired workers is known as ____________.  

Question. The construction workers are known as __________.   

CASE STUDY-3

Unemployment is a very serious issue not only in India but in the world .There are hundreds and thousands of people out there who do not have employment.Besides the problem of unemployment are very severe in India because of the growing population and demand for jobs. More over, if the country neglect this problem then it will be going to become the reason for the doom of the nation. Unemployment refers to a situation in which skilled and talented people wanted to do a jobs but cannot find the proper job due to several reasons for various type of unemployment in the country including disguised unemployment, open unemployment, technological unemployment and seasonal unemployment etc. Worker population ratio s an indicator which is used for analysing the employment situation in the country. ln India the proportion of work force in the formal Sector to total workforce is very high population growth slow economic growth ,seasonal occupation, slow growth of economic sector and fall in the cottage industry are major reason for unemployment in India in last portion of the population is engaged in the agriculture sector and the sector provides employment in harvest or plantation time only.

Questions:

Question. The proportion of population that is actively contribute to the production of goods and service of a country is called___________. (Worker population/Head count ratio)   

Question. _____________ (Disguised/Open)unemployment is a kind of unemployment in which there are people who are visibly employed but are actually unemployed.  

Question. __________ (Agriculture/service) sector is a major source of liveli hood for Indian workers.  

Question. _____________ (Casualisation/Brain drain) of workforce is the process of moving from self employment and regular salaries employment to unorganized wage work.  

CASE STUDY-4

India’s unemployment rate stood at 7.8% for the week ended November 22 and the labour participation rate at 39.3% resulting in a sharp fall in employment rate at 36.24%. While this is a sign of weakening labour markets over the last four week, it also reflects the inability of the labour markets to absorb adequate proportions of the working age population during the festive season of 2020.

Questions:

Question. What is meant by unemployment?

Answer. Unemployment refers to a situation in which people are able and willing to work at the existing wage rate but do not get work.

Question. Who all are included in labour force?

Answer. All persons, who are working and though not working, are seeking and are available for work, are deemed to be in the labour force.

Question. Define worker-population ratio.

Answer. Worker-population ratio is the percentage of total population engaged in work.

Question. Higher worker-population ratio indicates that less people are involved in economic activities. (T/F) 

CASE STUDY-5

In urban areas, the workforce participation rate is about 30% whereas in rural India, it is about 40%. The reason is that people in rural areas have limited resources to earn a higher income and participate more in the employment market. Many do not go to schools, colleges and other training institutions. In rural India, people cannot stay at home as their economic condition may not allow them to do so.

Questions:

Question. ___________ is a major source of livelihood for both men and women as this category accounts for more than 50%.
(a) Self employment
(b) Casual wage labour
(c) Regular salaried employment
(d) none of these 

Question. ____________ is the main source of employment for majority workers in India. (Primary sectors/ Secondary sectors)  

Question. Informal sectors include all those private enterprises which hire less than 10 Workers. (True / False)  

Question. Why in urban areas, the workforce participation rate is less than rural areas ?

Answer. In rural areas, people cannot stay at home as their economic condition do not allow them.They do not have a variety of mployment opportunities so they are ready to work in primary sectors even at low wages.

CASE STUDY-6

In urban areas, the worker-population ratio is about 36 whereas in rural India, the ratio is about 40. People in rural areas have limited resources to earn a higher income and participate more in the employment market. Many do not go to schools, colleges and other training institutions. Even if some go,they discontinue in the middle to join the workforce. People cannot stay at home as their economic condition may not allow them to do so.

Questions:

Question. The number of persons employed per hundred persons is termed as:
(a). Worker- population ratio.
(b). Head- Count ratio.
(c). Capital-Gain ratio.
(d). Legal reserves ratio. 

Question. In Urban areas, the Worker-population ratio is about______ whereas in rural Indian, the ratio is about _____

Question. Women workers account for———— of the rural workforce;whereas in urban areas, they are just __________ of the workforce.  

Question. The worker- population ratio in rural India is higher than that in Urban areas. Give reason.

Answer. People in rural areas have limited resources to earn a higher income. So they participate more in the employment market.

CASE STUDY-7

Mohan lived in a joint family. As he grew up, he started working with his father, uncles and cousins in their farm. They worked and earned well but Mohan thought that the people working on the farm were more than what were actually required. He moved to the city soon after, he did not get a job because he did not have the required degree. He enrolled himself in a college where he studied hard and after that, he got a well paid job, he felt satiated.

Questions:

Question. In the first part, which type of unemployment is being reflected?

Answer. Disguised unemployment

Question. Due to which type of urban unemployment, Mohan could not get a job?

Answer. Lack of skill and education

Question. __________ is a situation in which a worker does not get a full time job.   

Question. State whether the following is true or false:  
“Cyclic unemployment occurs due to imperfections in the mobility of labour across different occupations.”  

CASE STUDY-8

Over the last for decades, there has been considerable shift of workforce from self –employed and regular salaried  employment to casual wage work .Scholars termed this process of movement from self employment and regular salaried employment to casual work as Casualisation of workforce. Although self employment continues to be the major employment provider, but its share is declining and the share of casual workers in employment is increasing.

Questions:

Question. Define casualisation of workforce.

Answer. The process of movement from self employment regular salaries to casual wage work is casualisation of workforce.

Question. Casual worker get lower _______. 

Question. Which is share is major in employment? (Self Employment and Casual Worker)    

Answer. Casual Worker

Question. Give two reasons of casualisation of workforce.

Answer. Reasons:
(i). Slow growth of employment in organized sector.
(ii). Decreasing scope of earnings from agricultural activities

CASE STUDY-9

G D P growth in India happens to be faster than employment growth. In other words, even when production activity is expanding, job opportunities continue to be low. This is a situation of ‘jobless growth’. This occurs when we rely more and more on labour-saving western technology. Such a technology (using more of capital and less of labour) does not suit the needs and means of country where unemployment is an alarming social challenge. But, given the fact that the country lacks investment capital, we are forced to depend more and more on FDI (foreign direct investment). Foreign investment in India is linked with foreign technology which is efficient but the one which uses less and less of labour.

Questions:

Question. Reliance on FDI cannot be_____________ (minimized/maximized).Implying that the reliance on labour-saving western technology cannot be _____________ (minimized/ maximized).   

Question. Using more of capital and less of labour does not suit the needs and means of country where unemployment is an alarming social challenge. (True/False)   

Question. Define jobless growth.

Answer. G D P growth in India happens to be faster than employment growth. In other words, even when production activity is expanding, job opportunities continue to be low. This is a situation of ‘jobless growth’

Question. (Foreign investment / Landlords) ____________ in India is linked with foreign technology which is efficient but the one which uses less and less of labour.  

CASE STUDY-10

Questions:

Question. Compare the trends in employment pattern status wise

Answer. People have moved from self employment and regular salaried jobs to casual workers. Self employment is maximum.

Question. Define term casualisation.

Answer. The process in which the percentage of casually hired workers in the total work force tends to rise over time.

Question. What does above trend is indicating?

Answer. above trend is indicating moving of self employed and regular salaried employment to casual wage work.

Question. Supply of labour can increase or decrease even when the number of workers remains constant.(True/ False)