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The occupational structure of any country is defined by the segment of a country’s population that is engaged in economic ventures and various professions. To define occupational structure more simply, the different demographic sections of a country who are employed in different sectors like agriculture, manufacturing and transport, among many others constitute the occupational structure of a nation.
Different nations have varied percentages of the population working in various sectors. A developing country like India had and continues to have a fair share of its population employed in agricultural and manufacturing divisions. In contrast, developed countries like the USA have a major share of people working in technology and research.
To have a more sound knowledge of how occupational structure is vital for a country and its economy, we have to understand more about occupation's meaning and how the workforce of an entire country effectively manages to contribute to their financial freedom.
Types of Occupations
An occupation of a person is defined as the principal work or business which he or she carries out on a daily basis to earn their primary earning. An occupation or a job provides for a person’s subsistence meaning it helps him to earn whatever is necessary to cover all the basic amenities of his life.
Occupation in any country can be broadly divided into three major categories. These are the building blocks of occupational structure meaning these different professions can also roughly indicate how expansive the occupational structure of a country is.
Primary occupations of any country include agriculture, construction and animal husbandry.
The secondary set of occupations includes the people who work in the manufacturing and servicing industries.
The tertiary branch of occupations encompasses the part of the population working in communications, transport, administration and other remaining services.
Occupational Structure in Colonial India
During the long period when India was controlled by several European nations, mainly for its untapped and undiscovered wealth, the occupational structure of India was widely different than it is now today.
The agricultural sector amassed the highest percentage of people working, at around 70-75 percent of the whole population. Whereas the manufacturing and service industries held the rest 25-30 percent of the population.
This was also equally dependent on the geographical disparity in the country. States like Maharashtra, Bengal and present-day Tamil Nadu and Karnataka saw a huge chunk of the population shifting from agricultural work to manufacturing and servicing industries, whereas states like Orissa and Punjab saw massive growth in the agricultural division at the same time.
Features of Occupational Structure in India
Dominance of Agricultural Sector
a. The main occupation of Indian people was agriculture, which employed around 70-75 per cent of the population.
b. Due to a considerable fraction of the population already employed in agriculture, other industries did not see a boom in revenue and this was one of the reasons why the Indian economy never rose to its heights during the pre-Independence era.
c. There was no balance in the occupational structure. The primary occupations attracted more people, and so, the secondary and tertiary occupations never saw themselves contributing much to the national economy.
Growing Regional Dissimilarities
a. States like West Bengal, Karnataka, Tamil Nadu and Maharashtra saw a significant number of people, previously working in the agricultural sector, moving away from it. They started working in other secondary and tertiary occupations, which then started to balance the unbalanced occupational structure of the country.
b. At the same time, states like Punjab, Orissa and Rajasthan shifted their focus hugely to agriculture and have continued to do it even now.
c. This whole process helped the Indian economy to balance itself, with all sectors contributing equally to the economy at present.
Occupational Structure in Post-Independence India
The introduction of industrialisation after 1947 changed the occupational structure greatly in India. The previous alignment to the agricultural sector altered and many people who were previously working in primary occupations shifted their focus to secondary and tertiary sectors. The Indian government paid much attention to planning and transferred a part of the workforce to industries.
This change in focus helped the Indian economy and the entire population equally. As much as the national economy was overly dependent on primary sectors before Independence, the case was not so after 1947. Equal amounts of revenue were being collected from all the occupational sectors, and hence, the balance among different sectors started to grow.
Also, the population began to earn from different sources. They ceased to depend only on agriculture for their primary source of income. This, in turn, increased employment opportunities in the whole country where people living in rural areas can focus on agriculture whereas those living in urban areas can pivot their attention to secondary and tertiary zones of occupational structure, which now fetch equal amounts of revenue.
FAQs on Occupational Structure: Meaning and Significance
1. What is meant by the term 'occupational structure' in economics?
In economics, occupational structure refers to the distribution of a country's working population across different sectors of the economy. It shows what proportion of the workforce is engaged in various economic activities. Typically, these activities are grouped into three main categories: the primary sector, the secondary sector, and the tertiary sector. This distribution is a key indicator of a nation's economic development and industrialisation level.
2. What are the three main sectors of occupational structure? Explain with examples.
The occupational structure is primarily divided into three sectors based on the nature of economic activities:
Primary Sector: This sector involves the extraction of raw materials and natural resources directly from the earth. It is the foundation of all other economic activities. Examples include agriculture, mining, fishing, forestry, and animal husbandry.
Secondary Sector: This sector transforms the raw materials from the primary sector into finished or semi-finished goods. It is also known as the manufacturing or industrial sector. Examples include cotton textile production, car manufacturing, food processing, and construction.
Tertiary Sector: This sector provides services rather than producing goods. It supports the functioning of the primary and secondary sectors and caters to the needs of the population. Examples include banking, transportation, trade, education, healthcare, and IT services.
3. How does a country's occupational structure signify its level of economic development?
A country's occupational structure is a strong indicator of its economic development. Generally, as a nation develops, its workforce shifts from the primary sector to the secondary and tertiary sectors.
A developing economy, like India during the colonial period, typically has a high dependence on the primary sector (agriculture), indicating low industrialisation and productivity.
A developed economy, in contrast, has a smaller percentage of its workforce in agriculture and a much larger share in the secondary (manufacturing) and, especially, the tertiary (services) sectors. This shift signifies industrial growth, higher national income, better infrastructure, and improved quality of life.
4. What were the key characteristics of India's occupational structure during the colonial period?
During the British colonial period, India's occupational structure was characteristic of an underdeveloped and stagnant economy. The key features were:
Predominance of the Agricultural Sector: An overwhelming majority of the workforce, approximately 70-75%, was engaged in agriculture. This highlighted the lack of alternative employment opportunities.
Stagnant Industrial Sector: The manufacturing and industrial sectors employed only about 10% of the workforce, reflecting the de-industrialisation policies of the British that stifled local industries.
Growing Regional Disparities: While some regions (like parts of Madras Presidency, Bombay, and Bengal) saw a slight shift towards manufacturing and services, other states (like Odisha, Rajasthan, and Punjab) experienced an increase in the share of the agricultural workforce, leading to unbalanced regional growth.
5. Why did India’s occupational structure remain largely static during British rule?
India's occupational structure remained stagnant with a heavy reliance on agriculture during British rule primarily due to the colonial government's economic policies. These policies were designed to benefit the British economy, not to foster Indian industrial growth. The promotion of British manufactured goods led to the decline of traditional Indian handicraft industries, forcing displaced artisans to turn to agriculture for survival. There was a lack of investment in modern industries and infrastructure, which prevented the creation of jobs in the secondary and tertiary sectors, thus trapping the majority of the population in low-productivity agricultural work.
6. What is the significance of studying the occupational structure of a country?
Studying a country's occupational structure is significant for several reasons. It helps in:
Assessing Economic Growth: It serves as a barometer for the economic progress and structural transformation of an economy.
Future Planning: It provides crucial data for policymakers to formulate effective employment policies, plan for skill development, and allocate resources efficiently across different sectors.
Identifying Imbalances: It helps identify sectoral and regional imbalances in development, allowing for targeted interventions to promote balanced growth.
Understanding Social Structure: It offers insights into the social stratification and the standard of living of the population, as occupations are closely linked to income and social status.
7. How does the occupational structure of a developed nation like the USA differ from that of India?
The occupational structures of a developed nation like the USA and a developing nation like India show stark differences, reflecting their levels of economic maturity. In the USA, a very small fraction of the workforce (less than 2%) is engaged in the primary sector (agriculture). The secondary (industrial) sector also employs a moderate share, while the vast majority is employed in the tertiary (services) sector. In contrast, India, while showing a significant shift towards services, still has a large portion of its workforce (over 40%) dependent on the primary sector. This highlights that while India's service sector has grown, the industrial sector has not expanded enough to absorb the surplus labour from agriculture, a challenge that developed nations have largely overcome.
