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The NCERT Class 11 Indian Economic Development Chapter 6: Employment: Growth, Informalisation and Other Issues explores the concepts of workers, employment participation, self-employment versus hired work, shifts in employment structure from agriculture to industry and services, trends in informalisation, types and causes of unemployment, and government efforts to generate employment. It discusses challenges like jobless growth, where GDP increases without proportional job creation, and the dominance of the informal sector, which lacks job security and benefits. These solutions provide clear, concise, and CBSE-aligned answers for effective exam preparation. You can also download the free PDF for revision.
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NCERT Solutions Class 11 Indian Economic Development Chapter 6: Employment: Growth, Informalisation and Other Issues
This section provides detailed and student-friendly answers for the Class 11 Indian Economic Development Chapter 6 exercise questions. Each answer is explained clearly to strengthen understanding and exam preparation.
Exercise
1. Who is a worker?
A worker is an individual engaged in any economic activity that contributes to the gross national product (GNP) of the country, whether in a high or low capacity. This includes those who are self-employed, casual wage labourers, or regular salaried employees. Even those temporarily abstaining from work due to illness, injury, bad weather, festivals, or social/religious functions are considered workers. Workers also encompass those who assist main workers in economic activities. The definition goes beyond paid employment by an employer to include self-employment and unpaid family work that adds to production.
2. Define worker-population ratio.
The worker-population ratio is an indicator used to analyse the employment situation in a country. It measures the proportion of the population actively contributing to the production of goods and services. It is calculated as (total number of workers / total population) × 100. A higher ratio indicates greater engagement in economic activities, while a medium or low ratio suggests a large portion of the population is not directly involved in productive work.
3. Are the following workers: a beggar, a thief, a smuggler, a gambler? Why?
No, a beggar, a thief, a smuggler, or a gambler is not considered a worker because their activities do not contribute to the gross national product (GNP) or economic production. Workers are defined as those engaged in legitimate economic activities that add value to goods and services, such as farming, manufacturing, or services. These activities, being illegal or non-productive, do not qualify as work in an economic sense.
4. Find the odd man out (i) owner of a saloon (ii) a cobbler (iii) a cashier in Mother Dairy (iv) a tuition master (v) transport operator (vi) construction worker.
The odd one out is (iii) a cashier in Mother Dairy, as this person is a regular salaried employee working for an organised enterprise with job security and benefits. The others, owner of a saloon, cobbler, tuition master, transport operator, and construction worker, are typically self-employed or casual wage labourers in the informal sector, owning and operating their own small enterprises or working irregularly without formal protections.
5. The newly emerging jobs are found mostly in the —————– sector (service/manufacturing).
The newly emerging jobs are found mostly in the service sector. This includes areas like information technology, business process outsourcing, tourism, and other tertiary activities, which have shown rapid expansion compared to the manufacturing sector, especially in urban areas.
6. An establishment with four hired workers is known as a ——————– (formal/informal) sector establishment.
An establishment with four hired workers is known as an informal sector establishment. Such small-scale units are typically not registered with the government, lack job security for workers, and do not provide social protection benefits like a pension or a provident fund, which are characteristic of the formal sector.
7. Raj is going to school. When he is not in school, you will find him working in his farm. Can you consider him as a worker? Why?
Yes, Raj can be considered a worker because, when not in school, he engages in economic activity by working on his farm, which contributes to agricultural production and the gross national product (GNP). Even though he is a student, his part-time involvement in productive farm work qualifies him as a worker, as the definition includes those participating in economic activities, regardless of age or primary occupation.
8. Compared to urban women, more rural women are found working. Why?
More rural women are found working compared to urban women because rural areas have limited resources and economic opportunities, compelling women to participate in the workforce to support household income. In rural settings, women often engage in farm labour, animal husbandry, and other activities without formal wages, driven by poverty and the need for survival. In contrast, urban women have more access to education and may be discouraged from working if male family members earn sufficient income, leading to lower participation rates (about 14% urban vs. 18% rural).
9. 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 as a worker? Why?
Yes, Meena can be considered a worker because, in addition to household chores, she actively participates in the cloth shop, which is an economic activity contributing to the family’s income and the gross national product (GNP). Her work in the shop qualifies as self-employment or family labour in an enterprise, even if unpaid in cash, as it adds value to production. However, traditional household chores alone would not count as work under the narrow economic definition.
10. Find the odd man out (i) rickshaw puller who works under a rickshaw owner (ii) mason (iii) mechanic shop worker (iv) shoeshine boy.
The odd one out is (iv) shoeshine boy, as he is typically self-employed, operating independently without an employer. The others, rickshaw pullers working under an owner, a mason, and a mechanic shop worker, are hired workers, either casual wage labourers or regular employees dependent on others for their jobs.
11. The following table shows the distribution of the workforce in India for the year 1972-73. Analyse it and give reasons for the nature of workforce distribution. You will notice that the data pertains to the situation in India 30 years ago!
| Place of Residence | Workforce (in millions) | ||
| Male | Female | Total | |
| Rural | 125 | 69 | 195 |
| Urban | 32 | 7 | 39 |
The table shows that in 1972-73, the total workforce was 234 million, with 195 million in rural areas (125 million males, 69 million females) and 39 million in urban areas (32 million males, 7 million females). The distribution reflects a predominantly rural workforce (about 83%), dominated by agriculture as the primary sector. Reasons include: limited urban opportunities, high rural population dependence on farming, and lower female participation in urban areas due to better male incomes and social norms discouraging women from working. Males form the majority overall due to gender biases in employment access.
12. The following table shows the population and worker population ratio for India in 1999-2000. Can you estimate the workforce (urban and total) for India?
| Region | Estimates of Population (in crores) | Worker Population Ratio | Estimated No. of Workers (in crores) |
| Rural | 71.88 | 41.9 | 71.88 × 41.9 / 100 = 30.12 |
| Urban | 28.52 | 33.7 | 28.52 × 33.7 / 100 = 9.61 |
| Total | 100.40 | 39.5 | ? |
Using the worker-population ratio, the urban workforce is 28.52 crores × 33.7 / 100 = approximately 9.61 crores. The total workforce is 100.40 crores × 39.5 / 100 = approximately 39.66 crores. This indicates a higher rural participation rate due to limited alternatives, with overall workforce engagement at about 40%, reflecting underutilization of human resources.
13. Why are regular salaried employees more in urban areas than in rural areas?
Regular salaried employees are more concentrated in urban areas than rural areas because urban economies have more organised enterprises, factories, offices, and services requiring skilled, permanent workers with job security and benefits. Rural areas are dominated by agriculture and self-employment, with limited formal job opportunities due to overcrowding in farming and a lack of industrial development. Urban workers often have better education and skills suited for regular jobs, while rural workers rely on casual or seasonal labour.
14. Why are fewer women found in regular salaried employment?
Fewer women are found in regular salaried employment due to social norms where families discourage female participation if males earn sufficient income, especially in urban areas. Women often handle unpaid household work, which is not recognised as productive, leading to an underestimation of their contributions. Additionally, limited access to education and skills training, gender biases in hiring, and the preference for flexible or home-based work reduce their presence in formal, salaried roles. In rural areas, women engage more in casual farm labour, but overall, they account for only about 21% of regular salaried workers.
15. Analyse the recent trends in the sectoral distribution of the workforce in India.
Recent trends show a shift from the primary sector (agriculture) to secondary (manufacturing, construction) and tertiary (services) sectors. In 1972-73, the primary sector employed 74%, which declined to about 50% by 2011-12, while the secondary rose from 11% to 24% and services from 15% to 27%. However, agriculture remains dominant, especially in rural areas (76% primary). Urban areas show 60% in services. The shift is slow, with jobless growth post-1990s reforms, increasing casualisation and informalisation, where 93% of the workforce lacks security.
16. Compared to the 1970s, there has hardly been any change in the distribution of the workforce across various industries. Comment.
While there has been some shift since the 1970s, from 74% in primary to 60% by 1999-2000, the distribution remains largely unchanged, with agriculture still employing over half the workforce despite declining GDP contribution. This indicates slow structural transformation, limited industrial absorption of labour, and persistence of low-productivity farming. Reforms favoured capital-intensive growth, leading to jobless expansion in GDP without proportional employment shifts. Casualisation has increased (from 23% to 33%), but overall, the economy has not transitioned fully to secondary and tertiary dominance as in developed nations.
17. Do you think that in the last 50 years, employment generated in the country is commensurate with the growth of GDP in India? How?
No, in the last 50 years (from the 1960s to 2000s), employment generation has not been commensurate with GDP growth. GDP grew positively but fluctuated, while employment grew at a stable but lower rate of about 2% annually. Post-1990s, employment growth declined despite higher GDP, creating a widening gap known as jobless growth. This occurred because economic reforms emphasised capital-intensive industries, reducing labour absorption, and agriculture remained overcrowded without alternative jobs, leading to underemployment and informalisation.
18. Is it necessary to generate employment in the formal sector rather than in the informal sector? Why?
Yes, it is necessary to generate employment in the formal sector because it provides job security, social protection (pension, provident fund, medical allowances), fair wages, and better working conditions, improving overall quality of life. The informal sector, employing 93% of the workforce, involves vulnerabilities like low pay, exploitation, and no benefits, leading to poverty and distress. Shifting to formal employment aligns with development goals, reduces informalisation, and ensures decent livelihoods, as envisaged in planning for surplus agricultural workers to move to organised industry.
19. Victor is able to get work only for two hours in a day. The rest of the day, he is looking for work. Is he unemployed? Why? What kind of jobs could people like Victor be doing?
Yes, Victor is unemployed because he is willing and able to work but cannot find full-time employment at prevailing wages, making him underemployed or facing open unemployment for most of the day. This is common in casual labour markets. Persons like Victor could be doing casual wage jobs such as construction work, loading/unloading goods, street vending, or seasonal farm labour, which are irregular and low-paying in the informal sector.
20. You are residing in a village. If you are asked to advise the village panchayat, what kinds of activities would you suggest for the improvement of your village, which would also generate employment?
To improve the village and generate employment, I would suggest: (i) Developing infrastructure like roads, irrigation, and electricity to boost agriculture and non-farm activities; (ii) Promoting allied sectors such as animal husbandry, fisheries, and horticulture for diversification; (iii) Encouraging non-farm enterprises like agro-processing, handicrafts, and tourism through skill training and credit via SHGs; (iv) Implementing government schemes like MGNREGA for guaranteed wage work; (v) Enhancing education and vocational training for youth to access better jobs; (vi) Setting up cooperatives for marketing farm produce to ensure fair prices and income stability.
21. Who is a casual wage labourer?
A casual wage labourer is a worker engaged irregularly by others, often on a daily or short-term basis, and paid wages for the work done without job security or benefits. They account for about 25-33% of the workforce, commonly found in construction, agriculture, or small enterprises, and are vulnerable to exploitation and low pay in the informal sector.
22. How will you know whether a worker is working in the informal sector?
A worker is in the informal sector if their job lacks registration with the government, provides no social security benefits (like pension or provident fund), has irregular wages or no fixed contract, and offers little job security. Informal workers are often self-employed in small units or casual labourers without legal protections, comprising 93% of India’s workforce, unlike the formal sector’s organised enterprises with benefits.
Also Read: CBSE Class 10 Economics Chapter 1 NCERT Solutions
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