6.5. EMPLOYMENT IN FIRMS, FACTORIES AND OFFICES

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, at a much later stage, the industrial sector begins to lose its share of total employment as the service sector enters a period of rapid expansion.

As a country's economy develops, workers often leave farming and related work to find jobs in industries and service sectors in cities. This migration happens as industrial jobs become fewer and more people start working in services. Over time, the service sector grows quickly, meaning more jobs become available in areas like retail, healthcare, and technology, compared to traditional industries.

Imagine a farmer named Ramesh who has spent his life growing crops in a rural village. Over the years, he notices that many young people from his village are moving to the city to work in shops or IT companies. As more industries close or automate their functions, Ramesh realizes that his farming skills may not be sufficient. So, he also decides to move to the city, where he finds opportunities to work in a supermarket.

This shift can be understood by looking at the distribution of workers by industry. Generally, we divide all economic activities into eight different industrial divisions. They are (i) Agriculture (ii) Mining and Quarrying (iii) Manufacturing (iv) Electricity, Gas and Water Supply (v) Construction (vi) Trade (vii) Transport and Storage and (viii) Services.

Economic activities that generate income can be categorized into specific sectors. These eight sectors help us understand where people are employed. For instance, agriculture involves farming, while manufacturing includes factories that create products. Knowing about these divisions gives insights into how job opportunities change over time.

Think of a large pizza that represents an economy. Each slice represents a different sector. As the economy grows, some slices expand (like services) while others may shrink (like agriculture). If one day agriculture gets too small, there's less room for people to work, pushing them to seek larger slices where they can find jobs, like in services.

For simplicity, all the working persons engaged in these divisions can be clubbed into three major sectors: (a) primary sector which includes (i) and (ii), (b) secondary sector which includes (iii), (iv), and (v) and (c) service sector which includes divisions (vi), (vii), and (viii). Table 6.2 shows the distribution of working persons in different industries during the year 2017-18.

We categorize workers' jobs into three major sectors: the ‘primary sector,’ which is focused on raw materials (like agriculture and mining), the ‘secondary sector,’ which involves manufacturing goods, and the ‘service sector,’ which encompasses jobs that provide services (like healthcare and education). Understanding this classification helps us see how many people are employed in each area.

Imagine a fruit vendor selling apples at a market. The apples represent the primary sector (farming). The vendor then takes those apples to a factory to make apple juice (the secondary sector). Finally, the vendor sells juice at a restaurant, representing the tertiary sector (services). All three sectors are connected, and as the economy changes, so does the focus on these sectors.

About 60 per cent of urban workers are in the service sector. The secondary sector gives employment to about one-third of urban workforce. Though both men and women workers are concentrated in the primary sector, women workers’ concentration is very high there.

In urban areas, the majority of jobs are found in the service sector, while rural areas still rely heavily on agriculture. Interestingly, in rural jobs, a significant proportion of women work in agriculture, contrasting with urban employment, which offers more options for jobs outside of farming. This disparity influences gender roles and opportunities.

Consider urban areas like Mumbai, where you find numerous call centers and shops (services), compared to rural areas where families may work together on their farms. While young men and women in urban areas might take jobs at cafes or in IT, in villages, you might see women working in fields, highlighting how location affects job types and availability.

Though both men and women workers are concentrated in the primary sector, women workers’ concentration is very high there. About 57 per cent of the female workforce is employed in the primary sector whereas less than half of males work in that sector.

A significant number of women are engaged in jobs that fall under the primary sector, like agriculture, which impacts their economic involvement and visibility in the workforce. While many men also work in the primary sector, a wider variety of opportunities in secondary and tertiary sectors are often available to them compared to women, who may be limited to traditional roles.

Think about a group of women farmers tending to their crops. While they are crucial to producing food, their roles may not always be recognized as ‘work’ in official contexts, whereas a male worker in a factory may be more visible in employment statistics. This difference shows how gender roles can shape perceptions about what constitutes work in rural settings.

--