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Employment: Growth, Informalisation and Other Issues

NCERT Class 12 · Economics Based on NCERT Class 12 Economics textbook · Free CBSE study kit

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Chapter Notes

Overview
This chapter explores the concepts of workers, employment, and unemployment in the Indian context. It explains who constitutes a worker, how employment is measured through indicators like the worker-population ratio, and the changing structure of employment across sectors and statuses. The one big idea a student must walk away with is that while India's GDP has grown, employment growth has lagged, leading to 'jobless growth' and increasing informalisation of the workforce, with most workers now in the informal sector without social security.
Key Concepts (20)
Economic activities
Those activities which contribute to the gross national product of a country.
e.g. A farmer growing wheat, a factory worker making cloth, or a lorry driver transporting goods are all engaged in economic activities.
Worker
All those who are engaged in economic activities, in whatever capacity — high or low, including those who are self-employed or temporarily abstain from work due to illness, injury, or other reasons.
e.g. A self-employed vegetable vendor, a regular salaried bank cashier, and a casual construction labourer are all workers.
Workforce
The total number of persons engaged in economic activities in a country at a given time.
e.g. During 2022-23, India had about a 545 million strong workforce.
Worker-population ratio
The ratio of the total number of workers to the total population of a country, multiplied by 100.
e.g. If India's total population is 100 crore and the number of workers is 41 crore, the worker-population ratio is 41 per cent.
Self-employed
Workers who own and operate an enterprise to earn their livelihood.
e.g. A cement shop owner, a handloom weaver, or a pavement vegetable vendor.
Casual wage labourers
Workers who are casually engaged in others' farms or enterprises and get a remuneration for the work done, usually on a daily basis.
e.g. A construction worker hired for a day, or an agricultural labourer working on another farmer's field.
Regular salaried employees
Workers who are engaged by someone or an enterprise and paid their wages on a regular basis.
e.g. A civil engineer working in a construction company, or a cashier in a bank.
Casualisation of workforce
The process of moving from self-employment and regular salaried employment to casual wage work.
e.g. A farmer who loses his land and starts working as a daily-wage agricultural labourer is experiencing casualisation.
Formal sector (Organised sector)
All public sector establishments and those private sector establishments which employ 10 hired workers or more.
e.g. A government office, a large private factory with 50 workers, or a public sector bank.
Informal sector (Unorganised sector)
All other enterprises and workers working in those enterprises that are not in the formal sector, including farmers, agricultural labourers, owners of small enterprises, and self-employed without hired workers.
e.g. A roadside vendor, a cycle-rickshaw puller, or a construction worker hired casually.
Unemployment
A situation in which all those who, owing to lack of work, are not working but either seek work through employment exchanges, intermediaries, friends or relatives, or express their willingness or availability for work under the prevailing condition of work and remunerations.
e.g. A graduate who has registered at an employment exchange and is actively looking for a job but cannot find one.
Disguised unemployment
A situation where more people are employed in a job than actually needed, so that even if some are removed, total output does not decrease.
e.g. A farmer with four acres of land who employs five workers and his family members when only two workers and himself are needed.
Seasonal unemployment
Unemployment that occurs when there are no employment opportunities in a particular season, especially in agriculture.
e.g. Farm workers who migrate to urban areas during the dry season when there is no work on farms.
Jobless growth
A phenomenon where the economy produces more goods and services (GDP grows) without generating additional employment opportunities.
e.g. In the late 1990s, India's GDP grew but employment growth declined, widening the gap between GDP and employment growth.
Gross Domestic Product (GDP)
The total money value of all final goods and services produced in a country in a year.
e.g. The value of all cars, food grains, and services produced in India in a financial year.
Gross National Product (GNP)
GDP plus net earnings from foreign transactions (exports minus imports).
e.g. If India exports more than it imports, the net positive earning is added to GDP to get GNP.
Primary sector
The sector of the economy that includes agriculture, mining, and quarrying.
e.g. Farming, fishing, and coal mining are primary sector activities.
Secondary sector
The sector of the economy that includes manufacturing, electricity, gas and water supply, and construction.
e.g. A textile mill, a power plant, and a building construction site are in the secondary sector.
Service sector (Tertiary sector)
The sector of the economy that includes trade, transport and storage, and services.
e.g. A bank, a hospital, a school, and a transport company are in the service sector.
Employment generation programmes
Government programmes aimed at alleviating poverty through employment generation, providing services in areas such as primary health, primary education, rural drinking water, nutrition, and construction of community assets.
e.g. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005, which promises 100 days of guaranteed wage employment to rural households.
Formulas & Equations (2)
Worker-Population Ratio = (Total number of workers / Total population) × 100
Reads as: Worker-population ratio equals total number of workers divided by total population, multiplied by 100.
Variables: Total number of workers: the count of all persons engaged in economic activities; Total population: the total number of people residing in a particular locality at a particular point of time.
Use when: To calculate the proportion of population actively contributing to the production of goods and services.
⚠ Students often forget to multiply by 100, giving a decimal instead of a percentage. Also, they may use the workforce of a specific sector instead of the total workforce.
Percentage of workers in informal sector = (Number of informal sector workers / Total number of workers) × 100
Reads as: Percentage of workers in informal sector equals number of informal sector workers divided by total number of workers, multiplied by 100.
Variables: Number of informal sector workers: workers not in formal sector establishments; Total number of workers: the entire workforce.
Use when: To calculate the proportion of the workforce that is informalised.
⚠ Students may incorrectly use the number of formal sector workers in the numerator instead of informal sector workers.
How It Works
Classification of workers by status in employment
  1. Step 1: Identify whether the worker owns and operates an enterprise — if yes, classify as self-employed.
  2. Step 2: If the worker is engaged by someone or an enterprise and paid wages on a regular basis, classify as a regular salaried employee.
  3. Step 3: If the worker is casually engaged in others' farms or enterprises and gets remuneration for work done, classify as a casual wage labourer.
💡 Self-employment is the major source of livelihood for more than 50% of the workforce in India. Casual wage labourers are the most vulnerable among the three categories.
Shift of workforce from primary to secondary and service sectors
  1. Step 1: In the early stages of development, most workers are in the primary sector (agriculture).
  2. Step 2: As development proceeds, labour flows from agriculture to industry (secondary sector) and services (tertiary sector).
  3. Step 3: At a later stage, the industrial sector begins to lose its share of total employment as the service sector expands rapidly.
💡 In India, even after 70 years of planned development, the primary sector still employs about 46% of the workforce (2023-24), showing a slow structural shift.
Informalisation of the workforce
  1. Step 1: Workers in the formal sector enjoy social security benefits, regular income, and legal protection.
  2. Step 2: Due to slow growth of formal sector employment, many workers are forced into the informal sector.
  3. Step 3: Informal sector workers have no regular income, no social security, outdated technology, and live in slums.
  4. Step 4: The proportion of informal sector workers remains very high — about 89% of the workforce in 2019-20.
💡 The reform process initiated in the early 1990s resulted in a decline in the number of workers employed in the formal sector, increasing informalisation.
Government's role in employment generation (direct and indirect)
  1. Step 1: Direct employment: Government employs people in various departments, runs industries, hotels, and transport companies.
  2. Step 2: Indirect employment: When output from government enterprises increases, private enterprises that receive raw materials from them also raise output and create more jobs.
  3. Step 3: Employment generation programmes: Government implements schemes like MGNREGA to provide wage employment and create community assets in rural areas.
💡 The government is the major employer in the formal sector in India. In 2012, out of about 30 million formal sector workers, about 18 million were employed by the public sector.
Exam Traps — Don't Make These Mistakes
⚠ Confusing 'worker' with only paid employees
✗ Only those who are paid by an employer for their work are workers.
→ The definition of a worker includes all those engaged in economic activities, including self-employed persons and unpaid family workers who contribute to production.
✓ Workers include all persons engaged in economic activities, whether self-employed, regular salaried, or casual wage labourers, and even those who help main workers without direct payment.
⚠ Assuming housewives are not workers
✗ Housewives are not workers because they are not paid wages.
→ Many household activities done by women, such as cooking, fetching water, and participating in farm labour, contribute to the maintenance of the household and farms, and economists argue they should be regarded as economic activities.
✓ Women who carry out work like cooking, fetching water, and farm labour without pay are often not categorised as workers due to a narrow definition of work, but they contribute to the economy and should be considered workers.
⚠ Mixing up 'casual wage labourers' with 'regular salaried employees'
✗ A construction worker hired daily is a regular salaried employee.
→ Casual wage labourers are engaged casually and paid on a daily or per-task basis, without regular employment or benefits. Regular salaried employees are engaged by an enterprise and paid wages on a regular basis, often with job security.
✓ A construction worker hired daily is a casual wage labourer, not a regular salaried employee, because the engagement is not regular and there is no monthly salary.
⚠ Thinking 'disguised unemployment' means people are hiding their unemployment
✗ Disguised unemployment is when people pretend to be employed but are actually unemployed.
→ Disguised unemployment refers to a situation where more people are employed than needed, so even if some are removed, output does not fall. It is not about deception.
✓ Disguised unemployment is a situation where more people are engaged in a job than actually required, such as on a farm where extra family members work but do not add to output.
⚠ Confusing 'formal sector' with 'public sector' only
✗ Only government offices and public sector undertakings are part of the formal sector.
→ The formal sector includes all public sector establishments AND private sector establishments that employ 10 hired workers or more.
✓ The formal sector includes all public sector establishments and those private sector establishments which employ 10 hired workers or more.
Compare & Contrast
Employment conditions and social security
Formal sector (Organised sector)
Informal sector (Unorganised sector)
Formal sector workers enjoy social security benefits (provident fund, gratuity, pension), regular income, and legal protection through labour laws and trade unions, while informal sector workers have no regular income, no social security, and are often dismissed without compensation.
Nature of work and control over enterprise
Self-employed
Casual wage labourers
Self-employed workers own and operate their own enterprise and have authority over it, while casual wage labourers work for others on a daily or casual basis, have no ownership, and are the most vulnerable among the three employment statuses.
Cause and nature of unemployment
Disguised unemployment
Seasonal unemployment
Disguised unemployment occurs when more people are employed than needed (e.g., on a farm), so removing some does not reduce output; seasonal unemployment occurs when work is available only during certain seasons (e.g., agriculture), forcing people to seek work elsewhere in off-seasons.
Exam Focus
Marks pattern: 2 MCQs (1 mark each), 1 SA (3 marks) on definitions or data interpretation, 1 LA (5 marks) on trends in employment or government initiatives.
Most asked: Worker-population ratio and its interpretation · Classification of workers: self-employed, regular salaried, casual wage labourers · Casualisation and informalisation of workforce · Disguised and seasonal unemployment · Jobless growth and the gap between GDP and employment growth · Government employment generation programmes (especially MGNREGA)
Don't skip: Explain the concept of 'jobless growth' with reference to the Indian economy.; Distinguish between formal and informal sectors and discuss the trend of informalisation in India.; What is disguised unemployment? Why is it common in Indian agriculture?; Analyse the sectoral distribution of workforce in India and the shift from primary to secondary and service sectors.
One-Line Revision (read aloud before the exam)
  1. Economic activities are those that contribute to the gross national product.
  2. A worker is anyone engaged in an economic activity, including self-employed and unpaid family workers.
  3. Worker-population ratio is the percentage of total population that is working.
  4. In 2023-24, India's worker-population ratio was 43.7% overall, with rural at 45.6% and urban at 38.9%.
  5. About 77% of Indian workers are men and 23% are women.
  6. Self-employment is the major source of livelihood for more than 50% of the Indian workforce.
  7. Casual wage labourers are the most vulnerable among the three employment statuses.
  8. Casualisation of workforce refers to the shift from self-employment and regular salaried jobs to casual wage work.
  9. The formal sector includes all public sector establishments and private establishments with 10 or more hired workers.
  10. About 89% of Indian workers are in the informal sector (2019-20).
  11. Disguised unemployment is common in Indian agriculture where more people work than needed.
  12. Seasonal unemployment occurs when work is available only in certain seasons, especially in farming.
  13. Jobless growth means GDP grows without a corresponding increase in employment.
  14. MGNREGA 2005 guarantees 100 days of wage employment to rural households for unskilled manual work.
  15. The government generates employment directly by employing people and indirectly by stimulating private sector output.
  16. Women workers are concentrated in the primary sector, with 64% of female workforce employed there.
  17. The service sector provides employment to about 30% of Indian workers (2023-24).
  18. Primary sector employment has declined from 74% in 1972-73 to about 46% in 2023-24.
  19. Regular salaried employees are more common in urban areas than in rural areas.
  20. The reform process of the early 1990s led to a decline in formal sector employment.

MCQs — 10 Questions with Answers

Q1. According to the chapter, which of the following is considered an economic activity?

  • A. A farmer producing foodgrains that contribute to GNP ✓
  • B. A housewife cooking meals at home without payment
  • C. A person receiving inheritance from family
  • D. A child studying in school full-time

Answer: A — Economic activities are those that contribute to GNP; only the farmer's work creates goods that add to national production.

Q2. If India had a total population of 1,400 million and 545 million workers in 2022-23, what is the approximate worker-population ratio?

  • A. 25.8 per 100 persons
  • B. 38.9 per 100 persons ✓
  • C. 41.1 per 100 persons
  • D. 54.5 per 100 persons

Answer: B — Worker-population ratio = (545 ÷ 1,400) × 100 = 38.9 per 100 persons.

Q3. Which statement best explains why the worker-population ratio is higher in rural India (42) than in urban India (38)?

  • A. Rural areas have more factories and manufacturing jobs
  • B. Rural people have limited resources and lower education, forcing higher workforce participation despite seeking education ✓
  • C. Urban areas have stricter laws preventing people from working
  • D. Rural workers are paid higher wages, attracting more participation

Answer: B — The chapter explicitly states rural people have limited resources and lower education levels, causing them to participate more in employment markets.

Q4. According to the chapter, what percentage of India's workforce is male?

  • A. 23 per cent
  • B. 42 per cent
  • C. 77 per cent ✓
  • D. 67 per cent

Answer: C — The chapter directly states that about 77 per cent of workers are men and the rest (23 per cent) are women.

Q5. Which of the following is NOT considered a worker according to the chapter's definition?

  • A. A self-employed potter producing handicrafts
  • B. A farmer temporarily absent due to illness but regularly engaged in farming
  • C. A woman performing unpaid domestic work like cooking and fetching water ✓
  • D. A programmer working from home during Covid-19

Answer: C — Unpaid domestic work is explicitly excluded from worker classification because women receive no cash wages, though economists argue they should be counted.

Q6. What is the key difference between GNP and GDP as explained in the chapter?

  • A. GNP includes net earnings from foreign transactions; GDP does not ✓
  • B. GDP is always larger than GNP
  • C. GNP only counts agricultural production
  • D. GDP and GNP are the same; the chapter uses them interchangeably

Answer: A — The chapter defines GNP as GDP plus net earnings (positive, negative, or zero) from foreign transactions like exports and imports.

Q7. A woman has a technical degree, free time, and lives in an urban area, but does not seek employment. According to the chapter, which factor is MOST likely responsible for her not working?

  • A. Lack of educational qualification
  • B. Unavailability of jobs in her field
  • C. Social and cultural factors preventing women's workforce participation ✓
  • D. Her preference for inheritance over earning

Answer: C — The chapter includes a 'Work This Out' activity suggesting social factors prevent educated women from joining the workforce despite qualifications and time.

Q8. Which statement about rural women workers in India is correct based on the chapter?

  • A. Rural women earn equal cash wages for farm labour compared to men
  • B. Rural women account for one-fourth of the rural workforce but often work unpaid or receive no fair wages ✓
  • C. Rural women constitute one-fifth of the urban workforce
  • D. Rural women do not participate in any economic activities

Answer: B — The chapter states rural women are one-fourth of rural workforce, work in cooking, water-fetching, and farm labour, but are not paid in cash or grains.

Q9. According to the chapter, which pair of statements is correct? Statement 1: A worker must be paid by an employer to be counted as employed. Statement 2: Self-employed individuals are not considered workers.

  • A. Both statements are correct
  • B. Statement 1 is correct, but Statement 2 is incorrect
  • C. Statement 2 is correct, but Statement 1 is incorrect
  • D. Both statements are incorrect ✓

Answer: D — The chapter explicitly rejects both statements: self-employed people ARE workers, and workers need not be paid by employers.

Q10. If a country's worker-population ratio suddenly increases from 40 to 50 per 100 persons, which of the following interpretations is MOST reasonable based on the chapter's framework?

  • A. The country has become poorer because more people must work
  • B. Human capital utilization has improved; more population is actively contributing to GNP ✓
  • C. The country has solved unemployment completely
  • D. Women's participation has decreased significantly in the workforce

Answer: B — The chapter defines worker-population ratio as an indicator of proportion actively contributing to production; higher ratio means greater engagement and better human capital utilization.

Flashcards

What is an economic activity?

Any activity that contributes to the gross national product (GNP) of a country.

Who qualifies as a worker according to the NSSO definition?

Anyone engaged in economic activities (paid or self-employed) or temporarily absent due to illness, festivals, or bad weather.

What is the worker-population ratio and how is it calculated?

The percentage of population actively engaged in economic activities, calculated as (total workers ÷ total population) × 100.

What was India's approximate workforce size in 2022-23?

Approximately 545 million workers, with about two-thirds residing in rural areas.

What percentage of India's workforce are women?

About 23 per cent of the total workforce, though women's participation in unpaid domestic and farm work is often uncounted.

Why is the worker-population ratio higher in rural areas than urban areas in India?

Rural people have limited resources and lower education levels, forcing them to participate more in employment markets despite seeking education.

What is informalisation of employment?

Growth of unprotected, low-wage, unstable work without legal benefits, social security, or formal contracts.

Distinguish between GNP and GDP.

GDP is the money value of final goods and services produced within a country; GNP is GDP plus net earnings from abroad.

Why are housewives performing unpaid domestic work not counted as workers?

Because they receive no cash wages or formal payment, though economists argue they contribute to GNP and should be counted.

What are the main components of India's workforce participation studied?

Gender distribution (men vs women), sectoral participation (rural vs urban), and seasonal or year-round employment patterns.

Important Board Questions

Define economic activity and explain why housewives performing unpaid domestic work are not classified as workers despite contributing to household welfare. [2 marks]

Economic activity = contributes to GNP. Housewives not counted because: no cash payment received. Mention that economists argue they SHOULD be counted despite no wages.

Using India's 2022-23 employment data, explain why the worker-population ratio is higher in rural areas (42 per 100) than in urban areas (38 per 100). What does this difference reveal about human capital development in India? [5 marks]

Calculate or reference the 545 million workforce figure. Rural: limited resources, lower education, forced participation. Urban: access to schools/colleges, people study longer before joining workforce, selective job-seeking. Reveals: rural areas less developed; education delays urban participation but improves job quality.

Analyse the statement: 'Women are significantly undercounted in India's workforce statistics, yet they contribute substantially to the economy.' Use relevant data from the chapter and explain how this undercount occurs and what policy implications it suggests for employment generation. [6 marks]

Data: women = 23% of workforce; rural women = 1/4 of rural workforce (but undercounted). Undercount mechanism: unpaid domestic work, farm labour without cash wages, not recorded officially. Policy implications: recognise unpaid work in GNP, provide social security, create childcare facilities to enable formal participation, skilling programs for women. Include distinction between recorded vs actual contribution.

Assertion-Reason Questions for Employment: Growth, Informalisation and Other Issues

Q1. Assertion (A):

Women performing unpaid household work like cooking and fetching water are officially categorised as workers in India's employment statistics.

Reason (R):

These activities do not contribute to the gross national product of the country and therefore cannot be considered economic activities.

Answer: D — A is false but R is true — Both the assertion and reason are false. The text clearly states that these women 'are not categorised as workers' officially. The reason is also incorrect because economists argue these activities DO contribute to GNP, yet women are still not officially counted as workers. The text presents this as a contradiction that economists want to resolve.

Q2. Assertion (A):

The worker-population ratio in rural India (42%) is higher than in urban India (38%) because rural people have more access to educational institutions.

Reason (R):

Higher educational access allows rural people to continue studying longer and join the workforce at a later age, thereby increasing the proportion of workers in the rural population.

Answer: D — A is false but R is true — Both the assertion and reason are false. The text actually states the opposite: rural people have LIMITED resources and many do not go to educational institutions, or discontinue early to join the workforce. This FORCES them to participate more in employment, raising the ratio. Urban people have MORE educational access, which keeps them in school longer, lowering their worker-population ratio.

Q3. Assertion (A):

All persons engaged in economic activities that contribute to the gross national product are considered workers, regardless of whether they receive payment in cash, grains, or other forms.

Reason (R):

The definition of workers includes self-employed persons, those temporarily absent due to illness, and persons helping main workers, as long as they are engaged in activities contributing to GNP.

Answer: A — Both A and R are true, and R is the correct explanation of A — The assertion is true: the text defines workers as 'all those who are engaged in economic activities, in whatever capacity — high or low.' The reason correctly explains this by listing categories included as workers. The reason perfectly justifies why the assertion is true because it demonstrates that contribution to GNP is the key criterion, not the payment method or employment type.

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Case-Based Questions (CBQ) for Employment: Growth, Informalisation and Other Issues

Case Study:

The Singh family operates a textile weaving business in Punjab. Mr. Singh works in the weaving unit for 8 hours daily, producing cloth that is sold to local merchants. His wife, Priya, spends 5 hours daily spinning thread at home as an unpaid family helper, and another 3 hours cooking meals and fetching water for the household. Their daughter Neha, aged 14, helps in the weaving unit for 4 hours after school. According to India's employment statistics, only Mr. Singh is counted as a worker. However, the entire family's income depends on the collective effort of all three family members, and their combined work contributes significantly to the textile output that forms part of India's GNP.

Q1. According to official employment statistics, how many members of the Singh family would be counted as workers?

  • A. One (only Mr. Singh) ✓
  • B. Two (Mr. Singh and Neha)
  • C. Three (all family members)
  • D. None, as they are self-employed in a small business

Answer: A

Q2. Why is Priya's work of spinning thread NOT officially counted as employment even though it contributes to economic output?

  • A. Because she works at home instead of in a factory
  • B. Because she does not receive payment in cash or grains for this work ✓
  • C. Because spinning is not considered an economic activity
  • D. Because she is a woman and women cannot be counted as workers

Answer: B

Q3. Which concept from the chapter is illustrated by the gap between official worker count and actual economic contribution in this family?

  • A. The definition of self-employed workers in India
  • B. The debate about whether unpaid household work should be counted as economic activity and workers included in statistics ✓
  • C. The reason why rural areas have higher worker-population ratios than urban areas
  • D. The classification of workers engaged in traditional handicrafts

Answer: B

Q4. According to the chapter's perspective, what argument would economists make regarding the proper classification of this family's work situation?

  • A. All three family members should be counted as workers because their combined work contributes to GNP ✓
  • B. Only Mr. Singh should be counted because he works in the formal production unit
  • C. No family members should be counted because they work in a household setting
  • D. Only Mr. Singh and Neha should be counted because they work in the weaving unit

Answer: A

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Previous Year Questions (PYQ) for Employment: Growth, Informalisation and Other Issues

Real CBSE board exam questions from past papers — free to attempt.

CBSE 2026 · Set 58/1/1 · 1 mark

Identify, which of the following, highlights a highly relevant issue associated with evolving employment trends in India's labour market?

  • Progressive increase in the share of permanent salaried employees.
  • Increase in the proportion of casually employed individuals.
  • Expansion of self-employment avenues in all regions.
  • Significant rise in job opportunities within the formal sector.

CBSE 2026 · Set 58/1/1 · 1 mark

Match the terms given in Column-I with their respective meaning in Column-II. Select the correct option: Column-I: (i) Seasonal Unemployment (ii) Self-employed (iii) Unorganised sector (iv) Disguised Unemployment. Column-II: (a) Private enterprises hiring less than 10 employees (b) Workers using their own resources to earn livelihood (c) Unemployment occurring in specific season (d) Zero Marginal Productivity

  • (i)-(d); (ii)-(a); (iii)-(b); (iv)-(c)
  • (i)-(b); (ii)-(a); (iii)-(c); (iv)-(d)
  • (i)-(c); (ii)-(b); (iii)-(a); (iv)-(d)
  • (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)

CBSE 2026 · Set 58/1/1 · 3 marks

"Employment in the formal sector guarantees better income and social benefits compared to informal sector job." Defend or refute the above statement with valid reason and example.

CBSE 2026 · Set 58/1/1 · 1 mark

State the meaning of 'Disguised Unemployment'.

CBSE 2026 · Set 58/1/2 · 1 mark

Match the terms given in Column-I with their respective meaning in Column-II. (i) Seasonal Unemployment (ii) Self-employed (iii) Unorganised sector (iv) Disguised Unemployment with (a) Private enterprises hiring less than 10 employees (b) Workers using their own resources to earn livelihood (c) Unemployment occurring in specific season (d) Zero Marginal Productivity

  • (i)-(d); (ii)-(a); (iii)-(b); (iv)-(c)
  • (i)-(b); (ii)-(a); (iii)-(c); (iv)-(d)
  • (i)-(c); (ii)-(b); (iii)-(a); (iv)-(d)
  • (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)

CBSE 2026 · Set 58/1/2 · 3 marks

"Employment within the formal sector ensures better income and social benefits as against the informal sector." Defend or refute the above statement with valid reason and example.

CBSE 2026 · Set 58/1/3 · 1 mark

Identify, which of the following, highlights a highly relevant issue associated with evolving employment trends in India's labour market ?

  • Progressive increase in the share of permanent salaried employees.
  • Increase in the proportion of casually employed individuals.
  • Expansion of self-employment avenues in all regions.
  • Significant rise in job opportunities within the formal sector.

CBSE 2026 · Set 58/1/3 · 1 mark

Match the terms given in Column-I with their respective meaning in Column-II. Select the correct option : Column-I: (i) Seasonal Unemployment (ii) Self-employed (iii) Unorganised sector (iv) Disguised Unemployment Column-II: (a) Private enterprises hiring less than 10 employees (b) Workers using their own resources to earn livelihood (c) Unemployment occurring in specific season (d) Zero Marginal Productivity

  • (i)-(d); (ii)-(a); (iii)-(b); (iv)-(c)
  • (i)-(b); (ii)-(a); (iii)-(c); (iv)-(d)
  • (i)-(c); (ii)-(b); (iii)-(a); (iv)-(d)
  • (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)

CBSE 2026 · Set 58/2/1 · 1 mark

Read the following statements – Assertion (A) and Reason (R). Choose the correct option from those given below: Assertion (A): The dynamic sub-sectors like agro-processing industries, food processing industries, etc. have potential to create alternative employment opportunities. Reason (R): Men usually seek non-farm jobs, but recently, women have also started looking for such jobs.

  • Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
  • Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
  • Assertion (A) is true, but Reason (R) is false.
  • Assertion (A) is false, but Reason (R) is true.

CBSE 2026 · Set 58/2/1 · 1 mark

From the types of unemployment/employment given in Column-I and corresponding features given in Column-II, choose the correct pair: Column-I: (i) Disguised Unemployment (ii) Seasonal Unemployment (iii) Indirect employment by government (iv) Direct employment by government; Column-II: (a) Concentrated to a given season (b) Marginal productivity is zero (c) Indian Railways (d) Indian Oil Corporation (IOC)

  • (i) - (a)
  • (ii) - (b)
  • (iii) - (c)
  • (iv) - (d)

CBSE 2026 · Set 58/2/1 · 3 marks

Distinguish between formal and informal sector of employment with the help of suitable examples.

CBSE 2026 · Set 58/2/1 · 3 marks

Compared to 1970's, there has hardly been any change in the distribution of workforce across various industries. Defend or refute the above statement with valid explanation.

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Class 12 Economics Formula Sheet

Every formula from the 5 Macroeconomics chapters on one page, checked against the NCERT textbook and the CBSE 2026-27 syllabus. Free PDF download.

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Class 12 Economics Previous Year Questions, Chapter-wise

All 947 CBSE board questions from 2022–2026, sorted by chapter and question type. Free PDF download.

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