CBSE Class 11 Economics: Employment-Growth, Informalisation and Related Issues NCERT Solutions

NCERT Solutions PDF Class 11 PDF

This chapter delves into the critical aspects of employment, economic growth, and the informalisation of the workforce in India. It provides detailed explanations and solutions for exercises related to the definition of a worker, the worker-population ratio, and the distinction between formal and informal sectors. The solutions also explore the reasons behind the differing employment patterns between rural and urban areas, particularly for women, and discuss concepts like disguised unemployment. Understanding these dynamics is crucial for analyzing the Indian economy's labor market and its development trajectory. These NCERT Solutions are designed to help students grasp complex economic concepts, clarify doubts, and prepare effectively for their examinations by offering step-by-step explanations and insightful analysis.

Quick info

BoardCBSE
ClassClass 11
SubjectEconomics.
Session2026
LanguageEnglish
TypeNCERT Solutions
Chapter7. Employment-Growth, Informalisation and Related Issues

Chapter summary

Chapter 7 of the CBSE Class 11 Economics syllabus focuses on Employment, Growth, Informalisation, and Related Issues. The NCERT Solutions cover fundamental concepts such as defining a worker and the worker-population ratio. They analyze the characteristics of the workforce, distinguishing between formal and informal sectors, and exploring reasons for variations in employment participation, especially among rural and urban women. The chapter also touches upon disguised unemployment and provides data analysis for workforce distribution.

Learning outcomes

  • Define the term 'worker' in an economic context.
  • Understand and calculate the worker-population ratio.
  • Differentiate between formal and informal sector employment.
  • Analyze the factors influencing rural and urban female participation in the workforce.
  • Identify and explain the concept of disguised unemployment.
  • Interpret data related to workforce distribution.

Topics covered

Paper topics

  • Definition of a Worker
  • Worker-Population Ratio
  • Formal Sector
  • Informal Sector
  • Rural vs. Urban Employment
  • Female Labor Force Participation
  • Disguised Unemployment
  • Workforce Distribution Analysis
  • Informalisation of Economy
  • Employment and Economic Growth

Important topics

  • Worker-Population Ratio
  • Formal vs. Informal Sector
  • Reasons for Rural-Urban Employment Differences
  • Disguised Unemployment
  • Analysis of Workforce Distribution Data

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Questions and Solutions

Question 1

Who is a worker?
Solution: A worker is defined as an individual who is engaged in any activity that contributes to the production of goods and services, with the primary aim of earning a livelihood. This includes participation in economic activities that generate income, whether directly or indirectly.

Question 2

Define worker-population ratio.
Solution: The worker-population ratio, also known as the workforce participation rate, is a measure that indicates the proportion of a country's population that is actively engaged in productive economic activities. It is calculated using the formula:

\text{Worker-Population Ratio} = \frac{\text{Workforce}}{\text{Total Population}} \times 100

A higher ratio suggests that a larger percentage of the population is contributing to the production of goods and services, indicating a more robust employment situation.

Question 3

Are the following workers — a beggar, a thief, a smuggler, a gambler? Why?
Solution: No, a beggar, a thief, a smuggler, and a gambler are not considered workers in the economic sense. This is because their activities are not classified as productive employment that contributes to the generation of goods and services or earns a legitimate livelihood. These actions are often illegal or do not involve productive economic participation.

Question 4

Find the odd man out from the following: (i) owner of a saloon with more than 10 employees (ii) a cobbler (iii) a cashier in Mother Dairy (iv) a tuition master (v) transport operator (vi) construction worker.
Solution: The odd one out is (i) owner of a saloon with more than 10 employees. The reason is that the owner of a saloon with more than 10 employees operates a formal enterprise, likely registered and adhering to labor laws. The other options represent individuals who are typically self-employed or work in smaller, less formal setups (cobbler, tuition master, transport operator, construction worker) or are employees in a formal setup (cashier in Mother Dairy), but the owner of a large establishment stands out as an employer in a formal business structure.

Question 5

The newly emerging jobs are found mostly in the ______ (service/manufacturing) sector.
Solution: The newly emerging jobs are found mostly in the service sector.

Question 6

An establishment with four hired workers is known as ______ (formal/informal) sector establishment.
Solution: An establishment with four hired workers is known as informal sector establishment. Typically, establishments with fewer than four hired workers are considered informal.

Question 7

Raj is going to school. When he is not in school, you will find him working in his farm. Can you consider him as a worker? Why?
Solution: Raj can be considered a worker if his work on the farm is productive and contributes to the household's income or sustenance. However, if his involvement on the farm is minimal and does not affect the farm's output, and his primary engagement is education, he might be considered underemployed or not a primary worker. The context of whether his farm work is essential or supplementary is key. If he is only helping out occasionally and his main role is a student, he is primarily a student.

Question 8

Compared to urban women, more rural women are found working. Why?
Solution: The participation rate for women is generally higher in rural areas compared to urban areas due to several socio-economic factors. Firstly, poverty in rural areas often necessitates that women contribute to household income, pushing them to seek employment. Secondly, in rural settings, women often engage in agricultural or household-based activities that are considered part of their work, even if they are low-paying or not formally recognized. In contrast, urban areas may offer more educational opportunities for women, leading them to pursue higher education and delay or avoid employment. Additionally, societal norms in urban areas might sometimes discourage women from working, especially if male family members can earn sufficient income.

Question 9

Meena is a housewife. Besides taking care of household chores, she works in the cloth shop which is owned and operated by her husband. Can she be considered as a worker? Why?
Solution: Yes, Meena can be considered a worker. Even though she is a housewife managing household chores, her work in her husband's cloth shop constitutes productive employment. She is contributing to the business operations and potentially to the income generated by the shop. Since she is actively involved in the shop's work, she is participating in economic activity and can be classified as a worker, likely as a self-employed individual or contributing to a family enterprise.

Question 10

Find the odd man out from the following: (i) rickshaw puller who works under a rickshaw owner (ii) mason (iii) mechanic shop worker (iv) shoeshine boy.
Solution: The odd one out is (iv) shoeshine boy. A rickshaw puller working under an owner, a mason, and a mechanic shop worker are all engaged in services that are typically part of the informal or organized labor force, often involving specific skills or employment relationships. A shoeshine boy, while providing a service, is often considered a marginal worker, sometimes operating in a less structured or recognized capacity compared to the others.

Question 11

The following table shows the distribution of workforce in India for the year 1972-73. Analyse it and give reasons for the nature of workforce distribution. You will notice that the data is pertaining to the situation in India 30 years ago.

Place of Residence | Workforce (in millions)

| Male | Female | Total |

|---|---|---|---|

| Rural | 125 | 70 | 195 |

| Urban | 32 | 7 | 39 |

Solution:

Analysis of Workforce Distribution (1972-73):

The data from 1972-73 reveals a significant concentration of the workforce in rural areas, with 195 million people compared to 39 million in urban areas. This indicates that the majority of economic activity and employment opportunities were located in the countryside during that period.

Reasons for the Nature of Distribution:

  1. Dominance of Agriculture: In 1972-73, India's economy was heavily reliant on agriculture, which is predominantly a rural activity. A large portion of the population was engaged in farming and related activities, naturally leading to a higher rural workforce.
  2. Limited Urban Industrialization: While urban areas were centers for industry and services, the level of industrialization and the service sector's expansion were not as advanced as they are today. This meant fewer job opportunities were available in cities compared to the vast agricultural sector in rural areas.
  3. Rural Employment Structure: Rural employment was characterized by a larger male workforce (125 million) compared to the female workforce (70 million). This disparity reflects traditional gender roles and the types of labor available and accessible to women in rural settings, often linked to agriculture and household-based production.
  4. Lower Female Participation in Urban Areas: The data shows a stark difference in female workforce participation between rural (70 million) and urban (7 million) areas. This could be attributed to factors such as limited job availability for women in urban formal sectors, societal norms discouraging women from working outside the home in cities, and greater emphasis on education for urban women.
  5. Migration Patterns: While some rural-to-urban migration for employment existed, it was not substantial enough to shift the overall balance significantly, especially given the large rural population base.

In summary, the distribution reflects an economy where primary sector activities (agriculture) dominated, concentrated in rural settings, while the secondary and tertiary sectors, though growing, were not yet large enough to absorb a majority of the workforce, particularly in urban centers.

Common mistakes

  • Confusing unproductive activities with 'work'.
  • Misinterpreting the worker-population ratio formula or its implications.
  • Failing to distinguish between self-employment and wage employment in the informal sector.
  • Overlooking the socio-economic factors affecting female labor force participation.
  • Incorrectly classifying workers based on the number of employees or nature of work.

Revision tips

  • Clearly memorize the definitions of 'worker' and 'worker-population ratio'.
  • Focus on understanding the key differences and characteristics of the formal versus informal sectors.
  • Pay close attention to the reasons provided for variations in employment patterns, especially for women.
  • Practice analyzing the provided workforce distribution data to draw conclusions.
  • Review the concept of disguised unemployment with practical examples.

Practice MCQs

Q1. What is the primary criterion for an individual to be considered a worker?

Q2. The worker-population ratio is calculated as:

Q3. Which of the following activities is NOT considered productive employment for earning a living?

Q4. An establishment with four hired workers is typically classified under which sector?

Q5. Disguised unemployment is most likely to be observed in which scenario?

Frequently asked questions

What is the definition of a worker according to NCERT Economics?

A worker is defined as an individual who is engaged in some form of productive employment to earn a living. This means they are contributing to the production of goods and services.

How is the worker-population ratio calculated?

The worker-population ratio is calculated by dividing the total workforce by the total population and multiplying the result by 100. It represents the percentage of the population that is economically active.

What is the main difference between the formal and informal sectors?

The formal sector includes establishments with regular jobs and social security benefits, while the informal sector consists of small, often unregistered enterprises with irregular jobs and no social security.

Why are more rural women found working compared to urban women?

Poverty in rural areas often compels women to seek employment, even in less productive jobs. In urban areas, higher male incomes may discourage women from working, or they may face greater barriers to formal employment.

Can a beggar or a thief be considered a worker?

No, beggars, thieves, smugglers, and gamblers are not considered workers because their activities are not productive economic activities aimed at earning a livelihood through legitimate means.

What does it mean if Raj is considered 'disguisedly unemployed'?

If Raj is working on his family farm but is not essential for its operation (meaning the farm could produce the same output without him), he is considered disguisedly unemployed. His labor is not needed, but he is still engaged in the activity.

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