Proportion of workers, Microeconomics

Assignment Help:

Proportion of Workers in Organised and Unorganised Workers:

Increasing share of employment in unorganised sector reflect the deterioration in the quality of employment because workers' earnings, regularity of employment, work environment and social security vastly differ between organised and unorganised sector. Workers in the organised sector have better wages and salaries, job security, reasonably decent working conditions and social protection against such risks as sickness, injuries, disability and death arising out of hazards and accidents at work, separations, and old age. Those in the unorganised sector apart from security of job generally have no protection against these risks, have low earnings, often lower than the modest statutory minimum wages and have no regularity. An increase in the share of unorganised employment obviously means  an overall deterioration in the quality of employment. An important aspect related to quality of employment is the large size of unorganised sector  as against organised sector in total employment. The size of the organised sector, characterised by higher earnings and job security, is small. It was only about 7 per cent of the total employment in 1999-2000. Over the years, the share of the organised sector employment has been shrinking and that of the unorganised sector increasing. Organised sector employment grew at 1.20 per cent per annum during   1983-94 but only at 0.53 per cent between 1993-1994 and 1999-2000. Though the overall proportion of organised sector employment has come down only marginally between 1993-94 and 1999-2000, the proportion has considerably decreased in construction, transport, storage and communication and financial services. Manufacturing, construction,  trade and transport  are sectors where there is large concentration of unorganised workers.  

According to the estimates provided by the Director General of Employment and Training (DGET), organised sector employment saw an absolute decline of 9.1 lakh during the period March 1997 to March 2002; more than half of it in the manufacturing sector. During the single year 2001-2002, organised sector employment declined by 4.2 lakh. Unorganised sector employment, on the other hand, has shown consistently higher growth than that of the organised sector. The share of the unorganised sector employment which was estimated to be around 93 per cent earlier should, therefore, have gone up and may further increase over the coming years.   

Even within the organised sector, an increasing number of jobs are assuming the character of those in the unorganised  sector as a result of the increasing labour market flexibility in the wake of globalisation. A comprehensive survey of about 1300 firms, scattered over 10 states and nine important organised manufacturing industry groups (consisting of both public and private sectors) shows that between 1991 and 1998 although the total employment increased by over 2 per cent, most of the increase was accounted for by temporary, casual, contract and other flexible categories of workers (Deshpande et.al., 2004). Several other studies at micro level also show that flexibility in the labour market increased after the introduction of economic reforms in India, and despite the existence of restrictive labour laws, the firms have been able to retrench a large number of permanent workers while many units were closed leading to unemployment of thousands of workers.  


Related Discussions:- Proportion of workers

Exchange, three marginal conditions of pareto optimality

three marginal conditions of pareto optimality

Gross domestic product - deflator, Gross Domestic Product, Deflator: A pric...

Gross Domestic Product, Deflator: A price index that adjusts the overall value of GDP according to average increase in the prices of all output. GDP deflator equals the ratio of no

Monopsony is one buyer of a commodity, Monopsony is single buyer of a commo...

Monopsony is single buyer of a commodity in the market.  The MRP slopes downward in an imperfectly competitive (resource) market serving an not perfectly competitive product mar

Risk and gambling, John has a utility function given by U(M) = M0.5, where ...

John has a utility function given by U(M) = M0.5, where M represents an amount of cash prize in a game. If John wins, with the probability of 0.2, he will get $900; otherwise, he g

Replacement demand, The total demand consists of: 1. New owner demand an...

The total demand consists of: 1. New owner demand and 2.A replacement demand The replacement demand tends to grow with the in the total stock with the consumers. Once a pe

Exchange rate system, EXCHANGE RATE SYSTEM: It is interesting to look ...

EXCHANGE RATE SYSTEM: It is interesting to look at a case study of a country like India for several reasons: first it is a small country in terms of imports and exports as a p

Risk and cost benefit analysis , COST benefit analysis Costs that ...

COST benefit analysis Costs that are applicable in the project and the benefits that are associated with it are as follows: Risk occurs at different levels. It takes pl

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd