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Employment in the Indian Economy

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    UPSCgeeks
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Indian Economy: Employment

What is Employment in the Context of the Indian Economy?

Employment in the Indian economy refers to the process of providing jobs and opportunities for people to earn a living. It plays a crucial role in determining the standard of living and the overall economic growth of the country.

Types of Employment

  1. Rural Employment: Jobs in rural areas, including agriculture, livestock, and other rural-based industries.
  2. Urban Employment: Jobs in urban areas, including manufacturing, services, and urban-based industries.
  3. Formal Employment: Employment in formal sectors such as government jobs, private companies, and other organized sectors.
  4. Informal Employment: Employment in informal sectors, such as small-scale industries, unorganized industries, and other unregulated sectors.

Terms Related to Employment

  • Labour Force Participation Rate (LFPR): The percentage of the working-age population (15-64 years) employed or actively seeking employment.
  • Employment Rate: The percentage of the working-age population currently employed.
  • Working-Age Population: Population between the ages of 15 and 64 considered eligible for work.

Sectoral Distribution of Employment

  1. Agriculture: The largest sector for employment, engaging around 50% of the workforce.
  2. Manufacturing: Engages approximately 20% of the workforce.
  3. Services: Employs about 30% of the workforce.

Quality of Employment

  • Job Security: The degree to which employees feel secure in their jobs.
  • Job Satisfaction: The level of contentment employees feel with their jobs.
  • Wages and Benefits: Compensation and additional benefits provided to employees.

Causes of Lack of Employment

  • Poverty: Limited job opportunities in rural areas leading to poverty and unemployment.
  • Lack of Education and Skills: Insufficient education and skills among the workforce making it difficult to find employment.
  • Lack of Infrastructure: Poor infrastructure like roads, transportation, and communication hindering access to job opportunities.

Government Initiatives for Generating Employment

  • Make in India: Initiative to boost manufacturing and create job opportunities.
  • Skill India: Program aimed at skill development for enhancing employability.
  • Start-Up India: Initiative to promote entrepreneurship and job creation.
  • Job Fairs: Government-organized events to connect job seekers with employers.
  • Employment Exchanges: Government-run portals to assist job seekers in finding suitable employment.

Recommended Resources

Explore these resources to deepen your understanding of employment in the Indian economy:

Practice Questions

What is the main objective of employment in the Indian economy?
a) To promote economic growth and development
b) To reduce poverty and inequality
c) To increase agricultural productivity and improve the livelihoods of farmers
d) To promote social justice and equality

Answer: a) To promote economic growth and development

What are the three types of employment that are used in the Indian economy?
a) Formal, informal, and self-employment
b) Formal, informal, and part-time employment
c) Formal, informal, and full-time employment
d) Formal, informal, and temporary employment

Answer: a) Formal, informal, and self-employment

What is the role of the government in promoting employment in the Indian economy?
a) The government is responsible for creating jobs and opportunities for people to earn a living
b) The government is responsible for reducing poverty and inequality
c) The government is responsible for increasing agricultural productivity and improving the livelihoods of farmers
d) The government is responsible for promoting social justice and equality

Answer: a) The government is responsible for creating jobs and opportunities for people to earn a living

Recommended Books on Indian Economy

You can explore these highly recommended resources for a deeper understanding of the Indian economy.

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