Question

why day by day a huge number of the people are involving as an employer in the unorganised sector in spite of having difficulties. answer for 5 points

Answer 1

Explanation:

INTRODUCTION

Unorganized sector is a vast and significant segment of Indian economy in terms of its

economic worth through their economic contribution and the growing number of the

workers the sector engages. The unorganized sector in our country employs around 37

crore workers and is fast expanding as a result of the liberalization policies. The

unorganized sector workers are literally everywhere in fields, in homes, on streets in

small workshops, in agricultural fields everywhere over 90% of labour force work in

this sector.

Unorganized sector could be described as that part of the workforce who have not

been able to organize in pursuit of a common objective because of constraints such

as

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(a) Casual nature of employment.

(b) Ignorance and illiteracy.

(c) Small size of establishment with low capital investment per person employed.

(d) Scattered nature of establishment and

(e) Superior strength of the employer operating singly or in combination.

Today the unorganised or the informal sector account for more than 90 per cent of the

workforce in the country and almost 50 per cent of the national income evolves from

this sector. Ever since the initiation of the liberalisation policies in the early nineties,

informalisation of jobs has become a matter of concern. Growing competition

combined with increased market opportunities and limited resources have led to the

emergence of an informal economy. The predominance of the informal sector has led

to a situation of the benefits of economic growth being concentrated among few with

a growing proportion of the population living as working poor. Though the

Government changed its policy strategy to that of inclusive and sustainable growth in

the last decade, the fundamental issues leading to growing informalisation are yet to

be targeted.