CBSE Class 11 Indian Economic Development: Employment - Growth, Informalisation and Other Issues NCERT Solutions

Reviewed by NCERT Help Editorial Team · Updated on 29 Jul 2026

NCERT Solutions PDF Class 11 PDF

This chapter, "Employment: Growth, Informalisation and Other Issues," delves into the critical aspects of the Indian workforce for Class 11 Indian Economic Development students. It defines key terms like 'worker' and 'worker-population ratio,' explaining their significance in understanding a nation's economic health. The solutions clarify what constitutes productive economic activity and how it contributes to national income, differentiating it from non-productive or illegal pursuits. It also explores the characteristics of different employment types, distinguishing between self-employed and salaried individuals, and highlights the growing importance of the service sector in job creation. Furthermore, the chapter addresses the distinction between formal and informal sector establishments, providing a foundational understanding of India's employment landscape. These NCERT Solutions are designed to help students grasp complex concepts, analyze employment trends, and prepare effectively for their examinations by offering clear, step-by-step explanations.

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Quick info

Board	CBSE
Class	Class 11
Subject	Indian Economic Development
Session	2026
Language	English
Type	NCERT Solutions
Chapter	Chapter 7

Chapter summary

Chapter 7 of the Indian Economic Development syllabus focuses on 'Employment: Growth, Informalisation and Other Issues.' This section provides NCERT Solutions that define essential terms like 'worker' and 'worker-population ratio.' It clarifies the concept of productive economic activity and its contribution to national income, distinguishing it from non-economic activities. The solutions also help identify self-employed versus salaried workers and highlight the dominance of the service sector in emerging jobs. A key focus is differentiating between formal and informal sector establishments based on the number of hired workers. These solutions aim to build a clear understanding of the employment structure in India.

Learning outcomes

Understand the definition of a worker and their contribution to the economy.
Define and calculate the worker-population ratio (workforce participation rate).
Differentiate between productive economic activities and non-productive or illegal activities.
Identify and distinguish between self-employed and salaried workers.
Recognize the role of the service sector in generating new employment opportunities.
Differentiate between formal and informal sector establishments.

Topics covered

Paper topics

Definition of a Worker
Economic Activity
National Product Contribution
Worker-Population Ratio
Workforce Participation Rate
Self-Employed vs. Salaried Workers
Emerging Jobs
Service Sector Growth
Formal Sector Establishments
Informal Sector Establishments

Important topics

Definition of a Worker and Economic Activity
Worker-Population Ratio Calculation and Significance
Distinction between Formal and Informal Sector
Role of the Service Sector in Employment
Identifying Self-Employed vs. Salaried Workers

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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 productive economic activity to earn a living. This contribution is essential as it adds to the national product of a country. The term 'worker' encompasses individuals performing both mental and physical labor. It also includes those who might be temporarily absent from their work due to reasons such as illness or injury, provided they are fundamentally engaged in an economic pursuit.

Question 2

Define worker-population ratio.

Solution: The worker-population ratio, also commonly referred to as the workforce participation rate, is a key indicator of a country's employment situation. It is calculated as the percentage of the total population that is actively engaged in productive economic activities. This ratio essentially shows the proportion of people who are contributing to the production of goods and services. A higher worker-population ratio suggests that a larger segment of the population is actively involved in generating the nation's GDP.

The formula for calculating the worker-population ratio is:

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

Question 3

Are the following workers — a beggar, a thief, a smuggler, a gambler? Why?

Solution: No, a beggar, a thief, a smuggler, or a gambler cannot be classified as workers in the economic sense. The fundamental criterion for being a worker is engagement in a productive economic activity that contributes to the Gross Domestic Product (GDP) or national income. The activities undertaken by beggars, thieves, smugglers, and gamblers do not fall under this definition as they do not generate goods or services that add to the country's economic output. Therefore, they are not considered workers.

Question 4

Find the odd man out among the following: (i) owner of a saloon, (ii) a cobbler, (iii) a cashier in Mother Dairy, (iv) a tuition master, (v) transport operator, (vi) construction worker.

Solution: The odd ones out in the given list are a cashier in Mother Dairy and a construction worker. The reason for this classification is that the owner of a saloon, a cobbler, a tuition master, and a transport operator are typically self-employed individuals. They manage their own businesses or services and bear their own risks and rewards. In contrast, a cashier in Mother Dairy and a construction worker are salaried employees; they work for an employer and receive a regular wage or salary for their services.

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. This is because the service sector in India has been experiencing rapid growth and is characterized by innovation and diversification. As the economy develops, demand for various services increases, leading to the creation of more employment opportunities in areas like IT, finance, healthcare, education, and hospitality.

Question 6

An establishment with four hired workers is known as a ______ (formal/informal) sector establishment.

Solution: An establishment with four hired workers is known as an informal sector establishment. The informal sector is generally characterized by enterprises that are not registered, have a small number of hired workers, and often lack social security benefits and job security for their employees. In contrast, formal sector establishments are typically larger, registered, and adhere to government regulations regarding labor practices and social security.

Common mistakes

Confusing productive economic activity with non-economic or illegal activities.
Misinterpreting the worker-population ratio calculation or its implications.
Failing to distinguish between self-employment and wage/salaried employment.
Incorrectly classifying establishments as formal or informal.

Revision tips

Clearly memorize the definitions of 'worker' and 'worker-population ratio'.
Practice identifying which activities contribute to GDP and which do not.
Understand the criteria used to classify workers as self-employed or salaried.
Review the distinction between formal and informal sector establishments.
Focus on the reasons behind the growth of the service sector in employment.

Practice MCQs

Q1. Who is considered a worker according to economic principles?

Q2. The Worker-Population Ratio is also known as:

Q3. Which of the following activities is NOT considered productive economic activity contributing to national income?

Q4. Which sector is experiencing the most newly emerging jobs in India?

Q5. An establishment employing four hired workers is typically classified under which sector?

Frequently asked questions

What is the core definition of a 'worker' in the context of Indian Economic Development?

A worker is defined as an individual who engages in any productive economic activity to earn a living, contributing to the national product. This includes both mental and physical work, and even temporary absence due to illness is covered.

How is the 'worker-population ratio' calculated and what does it signify?

The worker-population ratio, also known as the workforce participation rate, is calculated as (Workforce / Total Population) * 100. It signifies the proportion of the population actively contributing to the country's goods and services production.

Why are beggars, thieves, and smugglers not considered workers?

These individuals are not considered workers because their activities are not productive economic activities that contribute to the Gross Domestic Product (GDP) or national income of a country.

What is the main difference between self-employed individuals and salaried workers?

Self-employed individuals own their enterprises and work for themselves (e.g., owner of a saloon, tuition master), while salaried workers are employed by others and receive a fixed wage or salary (e.g., cashier in Mother Dairy, construction worker).

Which sector is currently the main source of new job opportunities in India?

The service sector is currently the primary source of newly emerging jobs in India, driven by its rapid growth and innovative nature.

What distinguishes a formal sector establishment from an informal one?

An establishment with four hired workers is typically classified as an informal sector establishment. The formal sector usually involves larger establishments with more regulated employment conditions.

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