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This section explores the distribution of employment across the primary, secondary, and tertiary sectors in India, highlighting the slow transition in job creation compared to growth in GDP. It explains the concept of underemployment, particularly in agriculture, using relatable examples to elucidate the disparity between employment and production.
This section delves into the employment share across the three economic sectors: primary, secondary, and tertiary, illustrating that despite GDP growth, employment patterns remain stagnant, especially in agriculture. - Key Insights from Graphs: Graph 2 reveals the percentage share of economic sectors in GDP, indicating growth in the secondary and tertiary sectors over the past forty years. However, Graph 3 shows that employment has not followed this trend, with the primary sector still being the largest employer. - Underemployment Explained: The phenomenon where more people are employed in agriculture than needed is termed underemployment. An example of Laxmi, a small farmer, emphasizes that while her entire family works on their farm, they do not have full employment as their productivity could increase with fewer workers. - Disguised Unemployment: This term is used to describe situations where individuals are working but are not as productive as they could be. For instance, if two out of five family members help on the farm and their roles are redundant, this demonstrates disguised unemployment. - Broader Implications: Millions of agricultural workers in India are in similar situations. The text argues that reallocating these workers to more productive jobs outside agriculture could enhance family incomes significantly without harming agricultural output. This concept also extends to casual workers in urban sectors who experience daily employment variability. This discussion on employment highlights the challenges of transitioning labor from agriculture to more productive economic sectors, raising important questions about economic policy and labor market reforms.
Employment Distribution: Understanding how employment is spread across various sectors.
Underemployment: The phenomenon where individuals work but do not fully use their skills or efforts.
Disguised Unemployment: A situation where individuals seem to be employed but are underutilized in their roles.
In fields where farmers toil all day, underemployment keeps skills at bay.
Imagine a farmer named Laxmi, who relies on her family to work her small plot. Struggling to maximize their harvest, they are busy yet underutilized, portraying the reality of underemployment.
To remember the types of unemployment: Vulnerable U People (Visible Unemployment, Disguised Unemployment, Potentially Unemployed).
Laxmi's family farming scenario exemplifies underemployment, as their collective efforts do not maximize productivity.
Casual workers in urban areas illustrate underemployment through their struggle to find consistent work and low earnings.
Term: Primary Sector
Definition: The part of the economy that includes agriculture, forestry, fishing, and extraction of natural resources.
The part of the economy that includes agriculture, forestry, fishing, and extraction of natural resources.
Term: Secondary Sector
Definition: The sector that processes raw materials, including manufacturing and construction.
The sector that processes raw materials, including manufacturing and construction.
Term: Tertiary Sector
Definition: The sector that provides services, including retail, healthcare, finance, and education.
The sector that provides services, including retail, healthcare, finance, and education.
Term: Underemployment
Definition: A situation when workers are employed but not fully utilized or productive as they could be.
A situation when workers are employed but not fully utilized or productive as they could be.
Term: Disguised Unemployment
Definition: A type of unemployment where individuals appear to be working but are engaged in work that does not utilize their full capabilities.
A type of unemployment where individuals appear to be working but are engaged in work that does not utilize their full capabilities.