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Revision Notes

Class 11

Economics: Indian Economic Development

Chapter 7 Employment: Growth, Informalisation And Other Issues

Employment Growth Informalisation and Other Issues Class 11 Economics Chapter 6 CBSE Notes - 2025-26

Q: 2. How can one quickly revise the key employment indicators like Labour Force Participation Rate (LFPR)?

To quickly revise, remember that the Labour Force Participation Rate (LFPR) is a key concept that measures the proportion of the working-age population that is either employed or actively looking for a job. A simple way to understand it is: (Total Labour Force ÷ Total Population) × 100. The labour force itself includes both the employed (workforce) and the unemployed who are seeking work.

Q: 5. What is meant by 'casualisation' of the workforce in this chapter's context?

Casualisation of the workforce refers to the growing trend of workers being employed on a casual basis rather than as regular, salaried employees. This means more people are engaged in jobs that lack security, regular income, and benefits. Key reasons for this trend include the slow growth of employment in the organised sector and the shift of small farmers and industrial workers into casual labour due to economic distress.

Q: 6. What is the concept of 'jobless growth' and how does it relate to employment in India?

Jobless growth is a situation where the country's Gross Domestic Product (GDP) increases, but employment opportunities do not grow at a similar rate. This means the economy is growing, but it is failing to create enough new jobs for the expanding labour force. This concept is crucial for understanding India's employment challenges, where economic growth has often been driven by technology and capital-intensive sectors rather than labour-intensive ones.

Q: 7. For a quick revision, what are the main types of unemployment discussed in the chapter?

The key types of unemployment to remember for revision are:Disguised Unemployment: More people are employed in a task than are actually needed.Seasonal Unemployment: Workers are unemployed during certain seasons of the year, common in agriculture.Open Unemployment: A person is able and willing to work but cannot find a job.Structural Unemployment: Mismatch between the skills of workers and the skills required for available jobs.

Economics Notes for Chapter 6 Employment Growth Informalisation and Other Issues Class 11 - FREE PDF Download

Employment Growth Informalisation And Other Issues Notes are prepared to help students understand the various aspects of employment and its role in economic development. These notes cover important topics like the growth of employment, the informalisation of the workforce, unemployment, and the significance of organised and unorganised sectors. With simple explanations, tables, and key summaries, students can easily grasp complex concepts such as workforce distribution, government initiatives, and the impact of employment trends on the economy. Class 11 Economics Notes make these challenging topics easier to understand, helping students prepare effectively for their CBSE exams.

Table of Content

Download the FREE Economics Class 11 Chapter 6 PDF from Vedantu, updated as per the latest CBSE Class 11 Economics Syllabus, for effective learning and exam preparation.

Access Class 11 Economics Indian Economic Development Chapter 6 - Employment: Growth, informalisation, and Other Issues

Worker

A worker is a person who earns a living by engaging in some form of productive activity.

Types of Workers:

a. Self-Employed: Workers who own and operate a business for a living are referred to as self-employed. Consider a farmer who is working on his own farm. More than half of the workforce falls into this category.

b. Hired Workers: Hired workers are persons who are hired by others and are given wages and salaries in exchange for their services. The two types of hired workers are:

Casual Workers: Casual workers are those who are not engaged on a regular/permanent basis by their companies, and are given wages on an hourly/ day basis, and do not receive social security benefits.
Regular Workers (Salaried): Regular salaried employees or regular workers are those who are employed by someone or an organisation on a regular basis and are paid their salaries on a regular basis.

Economic Activity

It refers to the activity performed by people to earn a living. Consumption, production, and distribution are the three primary forms of economic activities.

a. Production Activity

It refers to all those activities which are undertaken to produce goods and services for the generation of income.

b. Consumption Activity: The usage of products and services by a household is characterised as consumption. It is used to calculate the Gross Domestic Product (GDP). Consumption is commonly used by macroeconomists as a proxy for the total economy.

c. Distribution Activity: Work directly associated with the construction, operation, and routine maintenance (other than major overhauls) of substation plant, overhead mains, underground cabling and jointing, pole inspection and street lighting, customer emergency services, and tree trimming and removal within minimum approach distances to energised conductors currently performed by Distribution Activities.

Employment in Firms, Factories And Offices

The migration of labour from agriculture and other related sectors to industry and services during the course of a country's economic development Workers migrate from rural to urban areas as part of this process.
In general, we categorise all producing activities into the following industrial divisions:
Agriculture, forestry, and logging, as well as ashing , mining, and quarrying, are all part of the primary sector.
Manufacturing, building, electricity, gas, and water delivery are all examples of the secondary sector.
Trade, transportation, storage, and services are all part of the tertiary sector.

Jobless Growth

It is characterised as a condition in which the economy's growth outpaces job prospects, resulting in unemployment.

a. Casualisation of Employment

Casualisation is a term used to describe a situation in which the percentage of workers hired temporarily basis increases over time. People start working as casual labourers due to a lack of chances in the organised sector. Furthermore, the freedom in terms of working conditions, as well as the lack of particular enforcement of labour laws, encourages businesses to hire more casual workers.

b. Informalisation of Employment

Refers to a situation when people tend to find employment more in the informal sector of the economy, and less in the formal sector of the economy. Workers transitioning from permanent employment to casual and fixed-term contracts, outsourcing, and employment through labour brokers are all examples of informalisation. Many individuals who have previously worked in a formal job will most likely re-enter the workforce as an atypical employee.

Unemployment

It occurs when a person is ready and willing to work at the current wage rate but is unable to find work.

Types of Unemployment

Rural unemployment: It is defined as unemployment that occurs in rural areas. There are two types:

Seasonal Employment: It describes a situation in which a large number of people are unable to obtain work during a specific season. Agriculture, ice cream factories, woollen mills, and other industries are examples.
Disguised Employment: When the marginal physical productivity of labour is zero or negative, it is referred to as "disguised employment."

Urban Unemployment: It refers to the employment occurring in urban areas. There are three types:

Industrial Unemployment: This category includes illiterate people who want to work in industries, mining, transportation, trading, and construction, among other things.
Educated Unemployment: Among the educated people, apart from open unemployment, many are underemployed because their qualification do not match the job. A Faulty education system, mass output, preference for white collar jobs, lack of employable skills and dwindling formal salaried jobs are mainly responsible for unemployment among educated youths in India.
Technological Unemployment: As a result of technological advancements, an economy may experience some structural unemployment. Such unemployment may be described as technological unemployment. Some workers are being replaced by machines as a result of the introduction of new machinery, improvements in manufacturing procedures, labour-saving technologies, and so on.

Causes of Unemployment

1. Slow Economic Growth: In the Indian economy, the rate of growth is very slow. This poor rate of growth does not give adequate job possibilities for the growing population. The Supply of labour is much more than the employment opportunities.

2. Rapid Growth of Population: Constant increase in population has been a grave problem in India. It is one of the primary reasons for unemployment. The number of unemployed has increased instead of decreasing during the plan period.

3. Inadequate Employment Planning: India's five-year plan was not created with the goal of creating jobs in mind. The unemployment problem was assumed to be solved through economic expansion.

4. Overuse of Foreign Technology: Due to the expensive expense of indigenous technology, excessive use of foreign technology has resulted in technical unemployment in the country.

5. Shortage of Financial Resources: A lack of financial resources has hampered the expansion and diversification of agriculture and small-scale industry. This has been accompanied by a tightening of government control over the economy.

Government and Employment Generation

The National Rural Employment Guarantee Act, 2005 was passed by the government in parliament in 2005.
It provides all rural households who volunteer to conduct unskilled manual labour 100 days of guaranteed paid employment.
This programme is one of many that the government has put in place to help persons who are unemployed in rural areas find work.
Since the country's independence, the federal and state governments have played an essential role in creating jobs or chances for job creation.

Their efforts can be divided into two categories:

a. Direct Employment: In this case, the government hires employees for administrative purposes in several departments. It also owns and operates factories, hotels, and transportation companies, providing direct employment to individuals.

b. Indirect Employment: When the output of goods and services from government enterprises increases then private enterprises which receive raw materials from government enterprises will also raise their output and as a result, the number of job opportunities in the economy will expand.

5 Important Topics of Economics Class 11 Chapter 6 you shouldn’t Miss!

S. No	Topic	Description
1	Employment and Workforce	Discusses the classification of workers into organised and unorganised sectors and the distribution of jobs.
2	Growth and Changes in Employment	Covers trends in employment growth over the years and the changing nature of jobs in different sectors.
3	Unemployment	Explains the types of unemployment, its causes, and its impact on the economy and individuals.
4	Informalisation of Workforce	Describes the shift of jobs from the formal to the informal sector and the challenges faced by informal workers.
5	Government Policies and Employment	Discusses initiatives by the government to promote employment and address unemployment issues.

Importance of Chapter 6 Economics Class 11 Notes

Employment Growth Informalisation And Other Issues Notes are very important for understanding how employment impacts the economy.
These notes simplify complex ideas about the workforce, unemployment, and the shift towards informal jobs.
By using Economics Class 11 Chapter 6 PDF, students can easily grasp important concepts, making it easier to prepare for exams.
The notes help break down difficult topics into simple terms, helping students build a solid foundation in economics.
Chapter 6 Economics Class 11 Notes provide clear explanations of the government's efforts to improve employment opportunities and tackle unemployment.

Tips for Learning the Class 11 Economics Chapter 6 Employment Growth Informalisation and Other Issues

Understand Key Terms: Focus on terms like employment, workforce, informalisation, and unemployment. Knowing these definitions will help you understand the chapter better.
Study Trends: Look at the changes in employment over time, and how different sectors like agriculture, industry, and services are affected.
Use Examples: Relate real-life examples of informal workers and unemployment situations to the concepts discussed in the chapter.
Focus on Government Policies: Learn about the various government initiatives aimed at boosting employment and reducing unemployment.
Practice Diagrams and Data: Review charts and graphs that show employment trends and the distribution of workers across sectors.

Conclusion

Employment Growth Informalisation And Other Issues Notes provide a clear understanding of how employment impacts the economy and society. These notes cover essential topics like workforce distribution, unemployment, and the rise of informal sectors, making complex ideas easy to grasp. By focusing on government initiatives and employment trends, students can better understand the challenges and opportunities in the labour market. Economics Class 11 Chapter 6 PDF simplifies difficult concepts, helping students prepare effectively for exams and build a strong foundation in economics.

Related Study Materials for Class 11 Economics Chapter 6 Employment Growth Informalisation and Other Issues

S. No	Study Materials for Economics Chapter 6 class 11
1.	Class 11 Employment Growth Informalisation and Other Issues NCERT Solutions
2.	Class 11 Employment Growth Informalisation and Other Issues Important Questions

Chapter-wise Revision Notes Links for Class 11 Economics (Indian Economic Development)

S. No	Revision Notes Links for Class 11 Economics
1	Chapter 1 Indian Economy on The Eve of Independence Notes
2	Chapter 2 Indian Economy 1950-1990 Notes
3	Chapter 3 Liberalisation, Privatisation and Globalisation: An Appraisal Notes
4	Chapter 4 Human Capital Formation In India Notes
5	Chapter 5 Rural Development Notes
6	Chapter 7 Environment and Sustainable Development Notes
7	Chapter 8 Comparative Development Experiences of India and its Neighbours Notes

Important Study Materials for Class 11 Economics

S. No	Related Study Materials Links for Class 11 Economics
1.	CBSE Class 11 Economics NCERT Solutions
2.	CBSE Class 11 Economics NCERT Important Questions
3.	CBSE Class 11 Economics NCERT Books
4.	CBSE Class 11 Economics Sample Papers

FAQs on Employment Growth Informalisation and Other Issues Class 11 Economics Chapter 6 CBSE Notes - 2025-26

1. What is a quick summary of 'employment' and its main types as per the Class 11 Economics syllabus?

Employment is any activity that allows a person to earn a livelihood. For a quick revision, remember it is broadly divided into two main types: Self-Employment, where individuals use their own resources to make a living (e.g., a shop owner), and Wage Employment, where a person works for others and receives a salary or wages. Wage employment can be further categorised into regular salaried and casual wage labour.

2. How can one quickly revise the key employment indicators like Labour Force Participation Rate (LFPR)?

To quickly revise, remember that the Labour Force Participation Rate (LFPR) is a key concept that measures the proportion of the working-age population that is either employed or actively looking for a job. A simple way to understand it is: (Total Labour Force ÷ Total Population) × 100. The labour force itself includes both the employed (workforce) and the unemployed who are seeking work.

3. What is the difference between the formal and informal sectors for a quick summary?

For revision purposes, the key difference lies in job security and social benefits. The formal (or organised) sector includes all public sector establishments and private establishments with 10 or more hired workers, offering regular wages and social security benefits like pensions and provident funds. In contrast, the informal (or unorganised) sector consists of all other enterprises and workers who do not have these protections, leading to irregular work and low income.

4. Why is the 'informalisation' of the workforce a major concern for the Indian economy?

The informalisation of the workforce is a major concern because it signifies a shift of workers from the secure formal sector to the insecure informal sector. This trend leads to several economic and social problems, including:

Lack of social security benefits like pensions and health insurance.
Irregular and low wages, increasing poverty and inequality.
Inability to form trade unions to protect worker rights.
Reduced tax revenue for the government.

5. What is meant by 'casualisation' of the workforce in this chapter's context?

Casualisation of the workforce refers to the growing trend of workers being employed on a casual basis rather than as regular, salaried employees. This means more people are engaged in jobs that lack security, regular income, and benefits. Key reasons for this trend include the slow growth of employment in the organised sector and the shift of small farmers and industrial workers into casual labour due to economic distress.

6. What is the concept of 'jobless growth' and how does it relate to employment in India?

Jobless growth is a situation where the country's Gross Domestic Product (GDP) increases, but employment opportunities do not grow at a similar rate. This means the economy is growing, but it is failing to create enough new jobs for the expanding labour force. This concept is crucial for understanding India's employment challenges, where economic growth has often been driven by technology and capital-intensive sectors rather than labour-intensive ones.

7. For a quick revision, what are the main types of unemployment discussed in the chapter?

The key types of unemployment to remember for revision are:

Disguised Unemployment: More people are employed in a task than are actually needed.
Seasonal Unemployment: Workers are unemployed during certain seasons of the year, common in agriculture.
Open Unemployment: A person is able and willing to work but cannot find a job.
Structural Unemployment: Mismatch between the skills of workers and the skills required for available jobs.

8. Can you explain 'disguised unemployment' with a simple example for revision?

Disguised unemployment occurs when productivity is low and too many workers are filling too few jobs. A classic example is in agriculture: if a farm requires only three people to operate efficiently but five family members are working on it, the two extra people are considered disguisedly unemployed. Their removal from the farm would not decrease the total output, meaning their contribution to production is essentially zero.

9. What were the key consequences of unemployment to remember for this chapter?

The main consequences of unemployment for revision are the loss of human potential and economic strain. It leads to:

An increase in poverty as people lack a stable income.
A wastage of human capital, as skilled and able-bodied individuals are not contributing to the economy.
An increased dependency ratio, where the non-working population relies on the working population.
Social unrest and a decline in the quality of life.

10. What is the summary of government policies aimed at generating employment in India?

For revision, the government's approach can be summarised in two ways. Directly, the government employs people in its administrative departments and runs public sector enterprises. Indirectly, it creates an environment for job growth through various policies and schemes. Key examples include programs promoting self-employment by providing financial assistance (like MGNREGA - Mahatma Gandhi National Rural Employment Guarantee Act) and policies like 'Make in India' to boost manufacturing and create jobs.