In economics, employment refers to the state of having a job or being employed. If one has to employ someone, one must pay them. The person who hires people is known as employer, and the person who is getting paid for providing the services is known as employee. Employers may include individuals, business, etc. People can work for themselves and run their own businesses as self-employed individuals.
Employment is distributed based on different factors such as gender, region, economic activities, etc.
1. Distribution of Employment by Gender
Following is the distribution of employment in India by Gender:
Observations:
- Self-employment is a significant source of income for both men (52%) and women (52%) accounting for more than half of the workforce. Working women’s mobility in search of work is limited due to family and social constraints. Women have many chances for self-employment in rural areas, and they work in traditional jobs like spinning, weaving, dyeing, bleaching, and so on.
- Casual wage work is the second most common source of income for both men (24%) and women (27%).
- However, more men can be found in more proportion in regular salaried employment; i.e., 24% than the proportion of women; i.e., 21%. It is so because generally, these jobs require skills and a higher level of literacy, which can be found in less number in women. Besides, due to social constraints, there is a lack of mobility among women in India.
2. Distribution of Employment by Region
With the help of the distribution of employment by region, one can know about the employment quality and attachment of workers to their jobs. Following is the distribution of employment in India by Region:
Observations:
- Self-employment is a key source of income in both rural and urban areas, but it is more prevalent in rural areas than in urban areas which are 58% in rural and 38% in urban areas. It is because people in urban regions seek skilled work in offices and factories while in rural areas agriculture is a primary source of livelihood with the majority of people cultivating their own farms/lands. Besides, non-farm job opportunities for employment are few in rural areas.
- Casual Wage Workers are more common in rural regions (29%) than in urban areas (15%). It is because people living in urban areas are more skilled and work for jobs in offices and factories.
- Regular Salaried Workers in urban regions are higher (47%) than those in rural areas (13%). It is because the nature of employment/jobs in urban areas differs, and businesses demand workers on a regular basis. Besides, due to their educational attainment and skills, urban people enjoy a wide range of employment opportunities. Only 13% of people in rural regions are employed on a regular basis due to a lack of skills and literacy, which is very less as compared to urban areas.
3. Distribution of Employment in Different Sectors
Labour flows from agriculture and other associated occupations to industry and services when a country’s economy develops. Workers migrate from rural to urban regions as a result of this process. At a later stage, the industrial sector begins to lose its share of total employment while the service sector enters a phase of fast development.
All economic activities are usually divided into eight distinct industrial groups. These are:
- Agriculture
- Mining and Quarrying
- Manufacturing
- Electricity, Gas, and Water Supply
- Construction
- Trade
- Transport and Storage
- Services
For convenience, all workers engaged in the eight divisions can be divided into three broad sectors: Primary Sector, Secondary Sector, and Tertiary Sector.
- Primary Sector includes Agriculture; Mining and Quarrying.
- Secondary Sector includes Manufacturing; Electricity, Gas, and Water Supply; and Construction
- Service Sector includes Trade; Transport and Storage; and Services.
Distribution of employment among primary, secondary, and tertiary sector can be presented as:
Observations:
- Primary Sector is the major source of employment and accounts for 44.6% of the workers in India.
- Secondary Sector provides employment to 24.4% of the total workers in India.
- Tertiary or Service Sector provides employment to 31% of the workers.
The distribution of workers among different sectors can be further classified among rural and urban, and male and female.
Distribution of Workforce in % (2017-18)
|
Industrial Category |
Place of Residence |
Sex |
Total |
||
|---|---|---|---|---|---|
|
Rural |
Urban |
Male |
Female |
||
| Primary Sector |
59.8 |
6.6 |
40.7 |
57.1 |
44.6 |
| Secondary Sector |
20.4 |
34.3 |
26.5 |
17.7 |
24.4 |
| Service Sector |
19.8 |
59.1 |
32.8 |
25.2 |
31 |
|
Total |
100 |
100 |
100 |
100 |
100 |
Let’s understand the distribution of workforce into rural-urban and male-female employment in different sectors one by one.
Distribution of Rural-Urban Employment in Different Sectors
Observations:
Employment in Rural Areas
- Primary Sector consists of 58% of the workforce in rural areas. These people are engaged in agriculture and mining and quarrying.
- Secondary Sector consists of 20.4% of the workforce in rural areas. These people are engaged in manufacturing, construction, industries, and other divisions.
- Tertiary Sector consists of 19.8% of the workforce in rural areas.
Employment in Urban Areas
- Primary Sector has the least share of the workforce in urban areas; i.e., 6.6%. It means that in urban areas, primary sector activities like agriculture and mining and quarrying are not the major source of employment.
- Secondary Sector consists of 34.3% of the workforce in urban areas.
- Tertiary or Service Sector consists of 59.1% of the workforce in urban areas.
Distribution of Male-Female Employment in Different Sectors
Observations:
Male Employment
- Primary Sector consists of 40.7% male workers.
- Secondary Sector consists of 26.5% male workers.
- Tertiary Sector consists of 32.8% male workers.
Female Employment
- Primary Sector consists of a high concentration of women workforce; i.e., 57.1% It is because as compared to women, men get opportunities in both secondary and tertiary sectors.
- Secondary Sector consists of 17.7% female workers.
- Tertiary Sector consists of 25.2% female workers.