<\/a><\/p>\n
When considering the array of 51 optional subjects for the\u00a0UPSC Mains Examination<\/strong>, Sociology consistently stands out as a top choice. Its inherent appeal lies in its accessibility and intriguing exploration of humanity and society, catering even to students from\u00a0Science<\/span><\/a>\u00a0and Commerce backgrounds. With a well-defined\u00a0UPSC sociology syllabus<\/strong><\/a>\u00a0comprising only 13 units, Sociology can be comprehensively covered\u00a0within\u00a04 to 5 Month Comprehensive \u201cFoundation to Finale\u201d<\/strong>\u00a0Classroom Programme, Many of Our Sociology Foundation Course Students have Cleared\u00a0CSE 2023- Kajal Singh, First Attempt (Age 22) Mahi Sharma, First Mains (Age 23), Anand Sharma First Mains and Many Others.<\/strong>\u00a0Previously also Many students like\u00a0IAS Pradeep Singh, IAS Ashish, IPS Bindu Madhav, IPS Aparna Gautam, IPS Shahnaz Illyas<\/strong>\u00a0got Success in CSE in\u00a0First Attempt with Sociology Optional.<\/strong><\/span><\/p>\nIAS Medha Anand, has get 310 marks in her optional subject sociology, 156 in paper \u2013 1 & 154 marks in Paper-2 in CSE 2023<\/strong>. Notably, Sociology for UPSC has garnered a reputation as one of the Highest scoring optional subjects in the UPSC Main Examination, with numerous candidates consistently achieving 300+. Its popularity is evident in the fact that a significant proportion of top 100 rankers opt for Sociology as their optional subject, showcasing its high scoring potential, particularly for those not from sociology backgrounds. Moreover, relevance of\u00a0Sociology Optional Syllabus for UPSC<\/strong>\u00a0extends beyond the examination hall, enriching understanding across various aspects of life, from social and economic to political and cultural domains. In recent times, Sociology Optional has gained traction, aligning with the evolving trend of the UPSC Mains towards conceptual analysis. Unlike other optional subjects with unpredictable question patterns, Sociology offers stability and predictability, making it an attractive choice. This adaptability, coupled with its concise syllabus and relevance to both academic and social spheres, positions Sociology as the ideal\u00a0optional subject for engineers<\/strong>\u00a0as well as\u00a0optional subject for commerce graduates<\/strong>\u00a0and\u00a0optional subject for\u00a0science<\/span><\/a>\u00a0graduates<\/strong>\u00a0seeking success in the\u00a0Civil Services Examination<\/strong>. For those pursuing Sociology as an optional subject, accessing comprehensive\u00a0Sociology optional notes<\/strong><\/a>\u00a0and few good\u00a0Sociology optional books<\/strong>, and previous years\u2019\u00a0UPSC sociology optional question papers<\/strong>\u00a0is pivotal for thorough preparation. Additionally, for aspirants seeking guidance, renowned\u00a0\u00a0educator<\/span><\/a>\u00a0Vikash Ranjan Sir at\u00a0TRIUMPH IAS<\/strong><\/a>\u00a0coaching institutes in Delhi, offer valuable support and resources.\u00a0Vikash Ranjan Sir<\/strong>\u00a0is the\u00a0Best Sociology Teacher<\/strong><\/a>\u00a0and Triumph IAS is the\u00a0best<\/strong>\u00a0sociology coaching in Delhi<\/strong><\/a>. If you are away from Old Rajendra Nagar, Delhi, you can still complete Journey of UPSC civil service preparation through\u00a0online Sociology class<\/strong>\u00a0<\/a>The\u00a0scientific<\/span><\/a>\u00a0nature of Sociology, coupled with its direct applicability to daily social interactions, renders it a subject that can be comprehended without extensive reference materials, distinguishing it from other optional subjects requiring extensive reading and research.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\nWhat's Inside this Blog!<\/p>\nToggle<\/span><\/path><\/svg><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\nFormal and Informal Organization of Work<\/a>Sociology Paper-1, Unit-6 [Works and Economic Life]<\/a><\/li>Formal and Informal Organization of Work<\/a><\/li>The unorganised sector in India<\/a><\/li>The End of the Blog : Formal and Informal Organization of Work<\/a><\/li><\/ul><\/li>After Class Doubts Session of Students \nwith Vikash Ranjan Sir<\/a>Frequently Asked Questions by \nUPSC Sociology Optional\u00a0Students<\/a><\/li><\/ul><\/li>Sociology Optional Program for \nUPSC CSE\u00a0 2025 & 2026<\/a><\/li><\/ul><\/nav><\/div>\n<\/span>Formal and Informal Organization of Work<\/span><\/span><\/h1>\n<\/span>Sociology Paper-1, Unit-6 [Works and Economic Life<\/span><\/strong>]<\/span><\/strong><\/span><\/span><\/h2>\n\n\n\n\n<\/span>Formal and Informal Organization of Work<\/span><\/span><\/h2>\nFormal Organization of Work:<\/span><\/h3>\nFormal organization of work is one which is deliberately planned and designed and duly sanctioned by the competent authority. It is the organization of work as shown on the organization chart or as described by manuals and rulers. Formal organization of work is a system of consciously coordinated activities or forces of two or more persons. Individuals agree to work in an organization because they are prepared to contribute their services and receive in return certain benefits.\u00a0<\/strong>The working of the postal department can be given as a good example. The delivery of mail depends upon certain inter-related activities like sorting of the letters, distribution of mail to the concerned postmen and delivery at the door step of the individuals concerned.\u00a0Formal organization is a system of well defined jobs, each bearing a definite measure of authority, responsibility and accountability, the whole consciously designed to enable the people of the enterprise to work most effectively together in accomplishing their objects.<\/strong><\/span><\/p>\nFormal organization of work is the frame through which organized effort is directed for achieving the goals. It has certain distinct characteristics. They are:<\/span><\/p>\n\nLegal Status<\/strong><\/span><\/li>\nDivision of work<\/strong><\/span><\/li>\nPrimacy of structure<\/strong><\/span><\/li>\nPermanence<\/strong><\/span><\/li>\nRules and Regulations<\/strong><\/span><\/li>\n<\/ul>\n\nLegal Status:\u00a0<\/strong>A distinctive feature of formal organization work is that it is backed by legal sanctions. The establishment of any organization where work is formally organized requires the enactment by parliament or legislature. Public sector organisations like Life Insurance Corporation, Food Corporation, etc., were established on the basis of enactments by the union parliament. The law which enables the organization to come into existence also confers authority. The personnel working in the various departments in the discharge of their official work are backed by the authority of law.<\/span><\/li>\nDivision of work:\u00a0<\/strong>Division of work, which is the very basis for Formal organization of work, is made possible through formal organisation. Formal organization which indicates the levels of management, the designation of officers and their area of operation makes it very convenient for the division of work.<\/span><\/li>\nPrimacy of Structure:<\/strong>\u00a0In formal organization of work, the emphasis is laid on the design and structure. As Urwick has noted that \u201cabsence of structure is illogical, cruel, wasteful and inefficient\u201d. The structure is clearly defined and the roles of individuals working in organizations are clearly spelled out. The structure also describes the communication flows and the relationships between workers.<\/span><\/li>\nPermanence:\u00a0<\/strong>Formal organisation of work is relatively permanent than informal oganisation of work. Though they adopt to environmental conditions and change the structure and even objectives, they are generally created to last a long time. Such work not only last long, but they also grow over time.<\/span><\/li>\nRules and Regulations:<\/strong>\u00a0Another important feature of a formal organization is that it is done in accordance with well-formulated rules and regulations. Officials involved in formal organizations of work cannot act as per their likes and dislikes but should function within the framework of the stipulated rules and regulations.<\/span><\/li>\nIn formal organisation of work it is important to determine the goals and objectives<\/strong>\u00a0in the absence of which it would be difficult to direct skills of men and women to accomplish the stated goals. These goals and objectives spells out the nature and scope of the activities of different persons working in the organization. In formal organisation of work every higher level functionary coordinates the activities of the officers immediately below him.\n<\/span><\/li>\n<\/ol>\nInformal Organisation of Work:<\/span><\/h3>\nBroadly speaking, Informal Organisation of Work is characterized by:<\/strong><\/span><\/p>\n\nLow levels of skill:<\/strong>\u00a0Workers in Informal Organisation of Work have low levels of education and thus they have low levels of skills. This is the reason why they are engaged in jobs involving low technology. Worker in the formal sector have skill and there position in the labour is better.<\/span><\/li>\nEasy entry:\u00a0<\/strong>Getting work in informal sector is comparatively easier than in the formal sector. Any able bodied person, irrespective of the skills possessed can become a day labourer. With minimum investment the same person can become a street vendor and sell her\/his wares in the market. The people need not money to invest in a shop. In this way the informal sector is able to absorb more workers who would not get any work because they are either not qualified or they do not have capital for investing in business.<\/span><\/li>\nLow paid employment:<\/strong>\u00a0Because of the requirement of low skill and the easy entry, work in the informal sector has low returns. Workers who offer their labour are not paid high wages. In fact, the biggest grievance against this sector is that the wages are many times below sustenance level. In many cases, low wages drive other members of the family in informal workforce because the main wage earned is not sufficient for sustaining a household. In this sense, children too may be encouraged to join the labour force.<\/span><\/li>\nImmigrant labour:\u00a0<\/strong>Informal sector is largely composed of immigrant. Most of the workers come to the city from rural areas in search of a livelihood. Hence migrant status is a characteristic of informal sector.<\/span><\/li>\n<\/ol>\nInformal organization of work is characterized by aggregate of personal contacts and interactions and the associated grouping of people. While the formal organization of work emphasizes on the structure, informal organisation of work emphasizes on personality and human emotions. The superior-subordinate relations between important officers may be influenced by the commanding personality or the powerful connections of the subordinates. In informal organization of work, roles are assigned without recognised status.<\/span><\/p>\nThus informal organisations of work are ill-defined and difficult to determine. They do not have definite goals. The relations between workers, therefore, are not specific. Spontaneous, unofficial and unstructured relations lead to favourable sentiments which in turn increase the interactions and strengthen the bonds of identification. Because of informal nature, absence of goals and unstructured relationship, the formal system of controls do not operate in informal organisations.<\/span><\/p>\n<\/span>The unorganised sector in India<\/span><\/span><\/h2>\nSpecial Note on Formal And Informal Sector:<\/span><\/h3>\nIn the mid 1950s, W. Arthur Lewis developed a theoretical model of economic development based on the assumption that there was an unlimited supply of labour in most developing countries and that this vast pool of surplus labour would be absorbed as the modern industrial sector in these countries grew. It was therefore assumed that the traditional sector comprised of petty traders, small producers and a range of casual jobs would eventually be absorbed into the formal economy and disappear.<\/strong><\/span><\/p>\nThis argument became less convincing since the 1970s when case studies on informal sector in various parts of the world began to reveal the highly active existence of men, women and children crowding at the bottom of the urban economy in Third World countries. So many studies have revealed the vast number of workers, in the Third World, striving hard to survive on the fruits of their labours outside the formal sector of the economy.<\/span><\/p>\n\nThe formal \u2013informal dichotomy can be regarded as a new variation on the dualism theories of the past.\u00a0<\/strong>In the colonial era a contrast was constructed between an invasive western capitalist sector and an opposing eastern non-capitalist people\u2019s economy. In post-colonial development theory the concept of dualism was applied to the dichotomy of traditional and modern. According to this view, the rural agricultural order was still predominantly pre-capitalist while the urban-based industrial economy was described as capitalist.\u00a0In the most recent phase of the dualism doctrine capitalism is the label of only the advanced segment of the urban milieu: the formal sector. The modes of production in the lower economic terrain, rather questionably labeled as non-capitalist, are characterized as the informal sector.<\/strong><\/span><\/li>\nIn operationalizing these variations on dualism, the contrasts are more significant than the specific characteristics of each segment.<\/strong>\u00a0For instance, it\u2019s entirely normal to describe the informal sector by summing up the absence of elements found in the formal sector. In the absence of a more analytical definition, the landscape of the informal sector becomes synonymous with the kaleidoscope of unregulated, poorly skilled and low-paid workers. Highlighting this chaotic assortment\u00a0Keith Hart coined\u00a0<\/strong>the term \u2018informal economy\u2019 in 1971.<\/span><\/li>\nThere are different terminologies used so interchangeably to signify the unorganized sector like informal sector, informal economy, and even informal labour which often highlights the most affected part of the sector, namely, the labour. \u201c Informal labour is a labour whose use is not governed either by state regulations or by collective agreements between workers and employers.\u201d<\/strong><\/span><\/li>\nInformal labour has, in different instances, been viewed as labour engaged in urban small scale enterprises, as self employment, as labour engaged in \u201ctraditional activities\u201d, as wholly unskilled labour, and as labour whose use is not subject to any rules or norms.\u00a0<\/strong>But none of this has any sound conceptual or empirical foundation. Informality does not imply a particular mode or location of labour use; informal labour can be in self-employment, in casual wage employment, and in regular wage employment, just as it can be in urban as well as in rural areas. There is little reason to think that informal labour must be confined to \u2018traditional\u2019 and \u2018modern\u2019 activities.<\/span><\/li>\nWe do not need to assume that informal labour is unskilled; only need to recognize that its skills are acquired outside the formal education system<\/strong>. And all the more in the context of the neo-liberal economic policies of hire and fire where\u00a0the organized sector itself is getting informalised through contractualisation, actualization<\/strong>, and outsourcing of labour, there are workers who are equally or even more educated and skilled, work better and even longer in so many of the organized sectors; but for no labour rights, wage, job or social security protection and for very dismal wages. The casual and contract labourers are under the working and living conditions that prevailed in the nineteenth century Europe.<\/span><\/li>\nSince the introduction of the informal sector concept, opinion has been divided as to its socioeconomic impact.<\/strong>\u00a0There are authors who positively point out the accelerated shift in livelihood patterns away from agriculture and villages to cities and towns in the Third World since the mid-twentieth century. But even if the masses of migrants flooding into urban areas were fortunate enough to establish a foothold, the vast majority of them could gain no access to the formal sector. It was still too small to cope with the continuous influx of newcomers.<\/strong><\/span><\/li>\nThe more critical analysis of researchers, who have observed that the formal sector remained inaccessible for reasons other than the inferior quality of the new urbanites\u2019 labour, and their other defects, rejects such an optimistic view.<\/strong>\u00a0The failure of the newcomers\u2019 efforts to find stable, decently paid and dignified work is in this alternative perception due mainly to a development strategy that, in the face of excess supply, seeks to keep the price of labour as low as possible, allows no room for collective action to reduce these people\u2019s vulnerability and refuses to provide this footloose workforce with public representation.\u00a0In short,<\/strong>\u00a0the lack of registration, organization and protection does not have its origin in the free play of social forces, but it\u2019s the deliberate product of economic interests that benefit from the state of informality in which a wide range of activities in all branches of the economy are kept, systematically and on a large scale, through evasion of labour laws and taxation.<\/span><\/li>\nIndeed, the informal sector is not a separate and closed circuit of work and labour.<\/strong>\u00a0There is the interaction, between the formal and informal sectors, and dependence of the latter on the former and even its subordination to it. Now with the neo-liberal economic policies there is the widespread informalization of the formal sector through downsizing, casualisation and contractualisation. In short the capitalist leaches become richer and richer by squeezing the life blood of the working force.<\/span><\/li>\n<\/ol>\nInformal Sector In India:<\/span><\/h3>\nThe Indian Economy is characterized by the existence of a vast majority of informal or unorganized labour employment<\/strong>. The Ministry of Labour, Government of India, has categorized the\u00a0Informal or unorganized labour<\/strong>\u00a0force under four groups in terms of Occupation, nature of employment, specially distressed categories and service categories.<\/span><\/p>\n\nIn terms of Occupation:<\/strong>\u00a0Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category.<\/span><\/li>\nIn terms of Nature of Employment:<\/strong>\u00a0Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this.<\/span><\/li>\nIn terms of Specially distressed categories:\u00a0<\/strong>Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and unloaders come under this category.<\/span><\/li>\nIn terms of Service categories:<\/strong>\u00a0Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors, News paper vendors etc. belong to this category.<\/span><\/li>\n<\/ol>\nIn addition to these four categories, there exists a large section of Informal or unorganized labour force\u00a0<\/strong>such as cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery workers, Power loom workers and Urban poor.<\/span><\/p>\nThough the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
IAS Medha Anand, has get 310 marks in her optional subject sociology, 156 in paper \u2013 1 & 154 marks in Paper-2 in CSE 2023<\/strong>. Notably, Sociology for UPSC has garnered a reputation as one of the Highest scoring optional subjects in the UPSC Main Examination, with numerous candidates consistently achieving 300+. Its popularity is evident in the fact that a significant proportion of top 100 rankers opt for Sociology as their optional subject, showcasing its high scoring potential, particularly for those not from sociology backgrounds. Moreover, relevance of\u00a0Sociology Optional Syllabus for UPSC<\/strong>\u00a0extends beyond the examination hall, enriching understanding across various aspects of life, from social and economic to political and cultural domains. In recent times, Sociology Optional has gained traction, aligning with the evolving trend of the UPSC Mains towards conceptual analysis. Unlike other optional subjects with unpredictable question patterns, Sociology offers stability and predictability, making it an attractive choice. This adaptability, coupled with its concise syllabus and relevance to both academic and social spheres, positions Sociology as the ideal\u00a0optional subject for engineers<\/strong>\u00a0as well as\u00a0optional subject for commerce graduates<\/strong>\u00a0and\u00a0optional subject for\u00a0science<\/span><\/a>\u00a0graduates<\/strong>\u00a0seeking success in the\u00a0Civil Services Examination<\/strong>. For those pursuing Sociology as an optional subject, accessing comprehensive\u00a0Sociology optional notes<\/strong><\/a>\u00a0and few good\u00a0Sociology optional books<\/strong>, and previous years\u2019\u00a0UPSC sociology optional question papers<\/strong>\u00a0is pivotal for thorough preparation. Additionally, for aspirants seeking guidance, renowned\u00a0\u00a0educator<\/span><\/a>\u00a0Vikash Ranjan Sir at\u00a0TRIUMPH IAS<\/strong><\/a>\u00a0coaching institutes in Delhi, offer valuable support and resources.\u00a0Vikash Ranjan Sir<\/strong>\u00a0is the\u00a0Best Sociology Teacher<\/strong><\/a>\u00a0and Triumph IAS is the\u00a0best<\/strong>\u00a0sociology coaching in Delhi<\/strong><\/a>. If you are away from Old Rajendra Nagar, Delhi, you can still complete Journey of UPSC civil service preparation through\u00a0online Sociology class<\/strong>\u00a0<\/a>The\u00a0scientific<\/span><\/a>\u00a0nature of Sociology, coupled with its direct applicability to daily social interactions, renders it a subject that can be comprehended without extensive reference materials, distinguishing it from other optional subjects requiring extensive reading and research.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\nWhat's Inside this Blog!<\/p>\nToggle<\/span><\/path><\/svg><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\nFormal and Informal Organization of Work<\/a>Sociology Paper-1, Unit-6 [Works and Economic Life]<\/a><\/li>Formal and Informal Organization of Work<\/a><\/li>The unorganised sector in India<\/a><\/li>The End of the Blog : Formal and Informal Organization of Work<\/a><\/li><\/ul><\/li>After Class Doubts Session of Students \nwith Vikash Ranjan Sir<\/a>Frequently Asked Questions by \nUPSC Sociology Optional\u00a0Students<\/a><\/li><\/ul><\/li>Sociology Optional Program for \nUPSC CSE\u00a0 2025 & 2026<\/a><\/li><\/ul><\/nav><\/div>\n<\/span>Formal and Informal Organization of Work<\/span><\/span><\/h1>\n<\/span>Sociology Paper-1, Unit-6 [Works and Economic Life<\/span><\/strong>]<\/span><\/strong><\/span><\/span><\/h2>\n\n\n\n\n<\/span>Formal and Informal Organization of Work<\/span><\/span><\/h2>\nFormal Organization of Work:<\/span><\/h3>\nFormal organization of work is one which is deliberately planned and designed and duly sanctioned by the competent authority. It is the organization of work as shown on the organization chart or as described by manuals and rulers. Formal organization of work is a system of consciously coordinated activities or forces of two or more persons. Individuals agree to work in an organization because they are prepared to contribute their services and receive in return certain benefits.\u00a0<\/strong>The working of the postal department can be given as a good example. The delivery of mail depends upon certain inter-related activities like sorting of the letters, distribution of mail to the concerned postmen and delivery at the door step of the individuals concerned.\u00a0Formal organization is a system of well defined jobs, each bearing a definite measure of authority, responsibility and accountability, the whole consciously designed to enable the people of the enterprise to work most effectively together in accomplishing their objects.<\/strong><\/span><\/p>\nFormal organization of work is the frame through which organized effort is directed for achieving the goals. It has certain distinct characteristics. They are:<\/span><\/p>\n\nLegal Status<\/strong><\/span><\/li>\nDivision of work<\/strong><\/span><\/li>\nPrimacy of structure<\/strong><\/span><\/li>\nPermanence<\/strong><\/span><\/li>\nRules and Regulations<\/strong><\/span><\/li>\n<\/ul>\n\nLegal Status:\u00a0<\/strong>A distinctive feature of formal organization work is that it is backed by legal sanctions. The establishment of any organization where work is formally organized requires the enactment by parliament or legislature. Public sector organisations like Life Insurance Corporation, Food Corporation, etc., were established on the basis of enactments by the union parliament. The law which enables the organization to come into existence also confers authority. The personnel working in the various departments in the discharge of their official work are backed by the authority of law.<\/span><\/li>\nDivision of work:\u00a0<\/strong>Division of work, which is the very basis for Formal organization of work, is made possible through formal organisation. Formal organization which indicates the levels of management, the designation of officers and their area of operation makes it very convenient for the division of work.<\/span><\/li>\nPrimacy of Structure:<\/strong>\u00a0In formal organization of work, the emphasis is laid on the design and structure. As Urwick has noted that \u201cabsence of structure is illogical, cruel, wasteful and inefficient\u201d. The structure is clearly defined and the roles of individuals working in organizations are clearly spelled out. The structure also describes the communication flows and the relationships between workers.<\/span><\/li>\nPermanence:\u00a0<\/strong>Formal organisation of work is relatively permanent than informal oganisation of work. Though they adopt to environmental conditions and change the structure and even objectives, they are generally created to last a long time. Such work not only last long, but they also grow over time.<\/span><\/li>\nRules and Regulations:<\/strong>\u00a0Another important feature of a formal organization is that it is done in accordance with well-formulated rules and regulations. Officials involved in formal organizations of work cannot act as per their likes and dislikes but should function within the framework of the stipulated rules and regulations.<\/span><\/li>\nIn formal organisation of work it is important to determine the goals and objectives<\/strong>\u00a0in the absence of which it would be difficult to direct skills of men and women to accomplish the stated goals. These goals and objectives spells out the nature and scope of the activities of different persons working in the organization. In formal organisation of work every higher level functionary coordinates the activities of the officers immediately below him.\n<\/span><\/li>\n<\/ol>\nInformal Organisation of Work:<\/span><\/h3>\nBroadly speaking, Informal Organisation of Work is characterized by:<\/strong><\/span><\/p>\n\nLow levels of skill:<\/strong>\u00a0Workers in Informal Organisation of Work have low levels of education and thus they have low levels of skills. This is the reason why they are engaged in jobs involving low technology. Worker in the formal sector have skill and there position in the labour is better.<\/span><\/li>\nEasy entry:\u00a0<\/strong>Getting work in informal sector is comparatively easier than in the formal sector. Any able bodied person, irrespective of the skills possessed can become a day labourer. With minimum investment the same person can become a street vendor and sell her\/his wares in the market. The people need not money to invest in a shop. In this way the informal sector is able to absorb more workers who would not get any work because they are either not qualified or they do not have capital for investing in business.<\/span><\/li>\nLow paid employment:<\/strong>\u00a0Because of the requirement of low skill and the easy entry, work in the informal sector has low returns. Workers who offer their labour are not paid high wages. In fact, the biggest grievance against this sector is that the wages are many times below sustenance level. In many cases, low wages drive other members of the family in informal workforce because the main wage earned is not sufficient for sustaining a household. In this sense, children too may be encouraged to join the labour force.<\/span><\/li>\nImmigrant labour:\u00a0<\/strong>Informal sector is largely composed of immigrant. Most of the workers come to the city from rural areas in search of a livelihood. Hence migrant status is a characteristic of informal sector.<\/span><\/li>\n<\/ol>\nInformal organization of work is characterized by aggregate of personal contacts and interactions and the associated grouping of people. While the formal organization of work emphasizes on the structure, informal organisation of work emphasizes on personality and human emotions. The superior-subordinate relations between important officers may be influenced by the commanding personality or the powerful connections of the subordinates. In informal organization of work, roles are assigned without recognised status.<\/span><\/p>\nThus informal organisations of work are ill-defined and difficult to determine. They do not have definite goals. The relations between workers, therefore, are not specific. Spontaneous, unofficial and unstructured relations lead to favourable sentiments which in turn increase the interactions and strengthen the bonds of identification. Because of informal nature, absence of goals and unstructured relationship, the formal system of controls do not operate in informal organisations.<\/span><\/p>\n<\/span>The unorganised sector in India<\/span><\/span><\/h2>\nSpecial Note on Formal And Informal Sector:<\/span><\/h3>\nIn the mid 1950s, W. Arthur Lewis developed a theoretical model of economic development based on the assumption that there was an unlimited supply of labour in most developing countries and that this vast pool of surplus labour would be absorbed as the modern industrial sector in these countries grew. It was therefore assumed that the traditional sector comprised of petty traders, small producers and a range of casual jobs would eventually be absorbed into the formal economy and disappear.<\/strong><\/span><\/p>\nThis argument became less convincing since the 1970s when case studies on informal sector in various parts of the world began to reveal the highly active existence of men, women and children crowding at the bottom of the urban economy in Third World countries. So many studies have revealed the vast number of workers, in the Third World, striving hard to survive on the fruits of their labours outside the formal sector of the economy.<\/span><\/p>\n\nThe formal \u2013informal dichotomy can be regarded as a new variation on the dualism theories of the past.\u00a0<\/strong>In the colonial era a contrast was constructed between an invasive western capitalist sector and an opposing eastern non-capitalist people\u2019s economy. In post-colonial development theory the concept of dualism was applied to the dichotomy of traditional and modern. According to this view, the rural agricultural order was still predominantly pre-capitalist while the urban-based industrial economy was described as capitalist.\u00a0In the most recent phase of the dualism doctrine capitalism is the label of only the advanced segment of the urban milieu: the formal sector. The modes of production in the lower economic terrain, rather questionably labeled as non-capitalist, are characterized as the informal sector.<\/strong><\/span><\/li>\nIn operationalizing these variations on dualism, the contrasts are more significant than the specific characteristics of each segment.<\/strong>\u00a0For instance, it\u2019s entirely normal to describe the informal sector by summing up the absence of elements found in the formal sector. In the absence of a more analytical definition, the landscape of the informal sector becomes synonymous with the kaleidoscope of unregulated, poorly skilled and low-paid workers. Highlighting this chaotic assortment\u00a0Keith Hart coined\u00a0<\/strong>the term \u2018informal economy\u2019 in 1971.<\/span><\/li>\nThere are different terminologies used so interchangeably to signify the unorganized sector like informal sector, informal economy, and even informal labour which often highlights the most affected part of the sector, namely, the labour. \u201c Informal labour is a labour whose use is not governed either by state regulations or by collective agreements between workers and employers.\u201d<\/strong><\/span><\/li>\nInformal labour has, in different instances, been viewed as labour engaged in urban small scale enterprises, as self employment, as labour engaged in \u201ctraditional activities\u201d, as wholly unskilled labour, and as labour whose use is not subject to any rules or norms.\u00a0<\/strong>But none of this has any sound conceptual or empirical foundation. Informality does not imply a particular mode or location of labour use; informal labour can be in self-employment, in casual wage employment, and in regular wage employment, just as it can be in urban as well as in rural areas. There is little reason to think that informal labour must be confined to \u2018traditional\u2019 and \u2018modern\u2019 activities.<\/span><\/li>\nWe do not need to assume that informal labour is unskilled; only need to recognize that its skills are acquired outside the formal education system<\/strong>. And all the more in the context of the neo-liberal economic policies of hire and fire where\u00a0the organized sector itself is getting informalised through contractualisation, actualization<\/strong>, and outsourcing of labour, there are workers who are equally or even more educated and skilled, work better and even longer in so many of the organized sectors; but for no labour rights, wage, job or social security protection and for very dismal wages. The casual and contract labourers are under the working and living conditions that prevailed in the nineteenth century Europe.<\/span><\/li>\nSince the introduction of the informal sector concept, opinion has been divided as to its socioeconomic impact.<\/strong>\u00a0There are authors who positively point out the accelerated shift in livelihood patterns away from agriculture and villages to cities and towns in the Third World since the mid-twentieth century. But even if the masses of migrants flooding into urban areas were fortunate enough to establish a foothold, the vast majority of them could gain no access to the formal sector. It was still too small to cope with the continuous influx of newcomers.<\/strong><\/span><\/li>\nThe more critical analysis of researchers, who have observed that the formal sector remained inaccessible for reasons other than the inferior quality of the new urbanites\u2019 labour, and their other defects, rejects such an optimistic view.<\/strong>\u00a0The failure of the newcomers\u2019 efforts to find stable, decently paid and dignified work is in this alternative perception due mainly to a development strategy that, in the face of excess supply, seeks to keep the price of labour as low as possible, allows no room for collective action to reduce these people\u2019s vulnerability and refuses to provide this footloose workforce with public representation.\u00a0In short,<\/strong>\u00a0the lack of registration, organization and protection does not have its origin in the free play of social forces, but it\u2019s the deliberate product of economic interests that benefit from the state of informality in which a wide range of activities in all branches of the economy are kept, systematically and on a large scale, through evasion of labour laws and taxation.<\/span><\/li>\nIndeed, the informal sector is not a separate and closed circuit of work and labour.<\/strong>\u00a0There is the interaction, between the formal and informal sectors, and dependence of the latter on the former and even its subordination to it. Now with the neo-liberal economic policies there is the widespread informalization of the formal sector through downsizing, casualisation and contractualisation. In short the capitalist leaches become richer and richer by squeezing the life blood of the working force.<\/span><\/li>\n<\/ol>\nInformal Sector In India:<\/span><\/h3>\nThe Indian Economy is characterized by the existence of a vast majority of informal or unorganized labour employment<\/strong>. The Ministry of Labour, Government of India, has categorized the\u00a0Informal or unorganized labour<\/strong>\u00a0force under four groups in terms of Occupation, nature of employment, specially distressed categories and service categories.<\/span><\/p>\n\nIn terms of Occupation:<\/strong>\u00a0Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category.<\/span><\/li>\nIn terms of Nature of Employment:<\/strong>\u00a0Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this.<\/span><\/li>\nIn terms of Specially distressed categories:\u00a0<\/strong>Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and unloaders come under this category.<\/span><\/li>\nIn terms of Service categories:<\/strong>\u00a0Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors, News paper vendors etc. belong to this category.<\/span><\/li>\n<\/ol>\nIn addition to these four categories, there exists a large section of Informal or unorganized labour force\u00a0<\/strong>such as cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery workers, Power loom workers and Urban poor.<\/span><\/p>\nThough the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
What's Inside this Blog!<\/p>\nToggle<\/span><\/path><\/svg><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\nFormal and Informal Organization of Work<\/a>Sociology Paper-1, Unit-6 [Works and Economic Life]<\/a><\/li>Formal and Informal Organization of Work<\/a><\/li>The unorganised sector in India<\/a><\/li>The End of the Blog : Formal and Informal Organization of Work<\/a><\/li><\/ul><\/li>After Class Doubts Session of Students \nwith Vikash Ranjan Sir<\/a>Frequently Asked Questions by \nUPSC Sociology Optional\u00a0Students<\/a><\/li><\/ul><\/li>Sociology Optional Program for \nUPSC CSE\u00a0 2025 & 2026<\/a><\/li><\/ul><\/nav><\/div>\n<\/span>Formal and Informal Organization of Work<\/span><\/span><\/h1>\n<\/span>Sociology Paper-1, Unit-6 [Works and Economic Life<\/span><\/strong>]<\/span><\/strong><\/span><\/span><\/h2>\n\n\n\n\n<\/span>Formal and Informal Organization of Work<\/span><\/span><\/h2>\nFormal Organization of Work:<\/span><\/h3>\nFormal organization of work is one which is deliberately planned and designed and duly sanctioned by the competent authority. It is the organization of work as shown on the organization chart or as described by manuals and rulers. Formal organization of work is a system of consciously coordinated activities or forces of two or more persons. Individuals agree to work in an organization because they are prepared to contribute their services and receive in return certain benefits.\u00a0<\/strong>The working of the postal department can be given as a good example. The delivery of mail depends upon certain inter-related activities like sorting of the letters, distribution of mail to the concerned postmen and delivery at the door step of the individuals concerned.\u00a0Formal organization is a system of well defined jobs, each bearing a definite measure of authority, responsibility and accountability, the whole consciously designed to enable the people of the enterprise to work most effectively together in accomplishing their objects.<\/strong><\/span><\/p>\nFormal organization of work is the frame through which organized effort is directed for achieving the goals. It has certain distinct characteristics. They are:<\/span><\/p>\n\nLegal Status<\/strong><\/span><\/li>\nDivision of work<\/strong><\/span><\/li>\nPrimacy of structure<\/strong><\/span><\/li>\nPermanence<\/strong><\/span><\/li>\nRules and Regulations<\/strong><\/span><\/li>\n<\/ul>\n\nLegal Status:\u00a0<\/strong>A distinctive feature of formal organization work is that it is backed by legal sanctions. The establishment of any organization where work is formally organized requires the enactment by parliament or legislature. Public sector organisations like Life Insurance Corporation, Food Corporation, etc., were established on the basis of enactments by the union parliament. The law which enables the organization to come into existence also confers authority. The personnel working in the various departments in the discharge of their official work are backed by the authority of law.<\/span><\/li>\nDivision of work:\u00a0<\/strong>Division of work, which is the very basis for Formal organization of work, is made possible through formal organisation. Formal organization which indicates the levels of management, the designation of officers and their area of operation makes it very convenient for the division of work.<\/span><\/li>\nPrimacy of Structure:<\/strong>\u00a0In formal organization of work, the emphasis is laid on the design and structure. As Urwick has noted that \u201cabsence of structure is illogical, cruel, wasteful and inefficient\u201d. The structure is clearly defined and the roles of individuals working in organizations are clearly spelled out. The structure also describes the communication flows and the relationships between workers.<\/span><\/li>\nPermanence:\u00a0<\/strong>Formal organisation of work is relatively permanent than informal oganisation of work. Though they adopt to environmental conditions and change the structure and even objectives, they are generally created to last a long time. Such work not only last long, but they also grow over time.<\/span><\/li>\nRules and Regulations:<\/strong>\u00a0Another important feature of a formal organization is that it is done in accordance with well-formulated rules and regulations. Officials involved in formal organizations of work cannot act as per their likes and dislikes but should function within the framework of the stipulated rules and regulations.<\/span><\/li>\nIn formal organisation of work it is important to determine the goals and objectives<\/strong>\u00a0in the absence of which it would be difficult to direct skills of men and women to accomplish the stated goals. These goals and objectives spells out the nature and scope of the activities of different persons working in the organization. In formal organisation of work every higher level functionary coordinates the activities of the officers immediately below him.\n<\/span><\/li>\n<\/ol>\nInformal Organisation of Work:<\/span><\/h3>\nBroadly speaking, Informal Organisation of Work is characterized by:<\/strong><\/span><\/p>\n\nLow levels of skill:<\/strong>\u00a0Workers in Informal Organisation of Work have low levels of education and thus they have low levels of skills. This is the reason why they are engaged in jobs involving low technology. Worker in the formal sector have skill and there position in the labour is better.<\/span><\/li>\nEasy entry:\u00a0<\/strong>Getting work in informal sector is comparatively easier than in the formal sector. Any able bodied person, irrespective of the skills possessed can become a day labourer. With minimum investment the same person can become a street vendor and sell her\/his wares in the market. The people need not money to invest in a shop. In this way the informal sector is able to absorb more workers who would not get any work because they are either not qualified or they do not have capital for investing in business.<\/span><\/li>\nLow paid employment:<\/strong>\u00a0Because of the requirement of low skill and the easy entry, work in the informal sector has low returns. Workers who offer their labour are not paid high wages. In fact, the biggest grievance against this sector is that the wages are many times below sustenance level. In many cases, low wages drive other members of the family in informal workforce because the main wage earned is not sufficient for sustaining a household. In this sense, children too may be encouraged to join the labour force.<\/span><\/li>\nImmigrant labour:\u00a0<\/strong>Informal sector is largely composed of immigrant. Most of the workers come to the city from rural areas in search of a livelihood. Hence migrant status is a characteristic of informal sector.<\/span><\/li>\n<\/ol>\nInformal organization of work is characterized by aggregate of personal contacts and interactions and the associated grouping of people. While the formal organization of work emphasizes on the structure, informal organisation of work emphasizes on personality and human emotions. The superior-subordinate relations between important officers may be influenced by the commanding personality or the powerful connections of the subordinates. In informal organization of work, roles are assigned without recognised status.<\/span><\/p>\nThus informal organisations of work are ill-defined and difficult to determine. They do not have definite goals. The relations between workers, therefore, are not specific. Spontaneous, unofficial and unstructured relations lead to favourable sentiments which in turn increase the interactions and strengthen the bonds of identification. Because of informal nature, absence of goals and unstructured relationship, the formal system of controls do not operate in informal organisations.<\/span><\/p>\n<\/span>The unorganised sector in India<\/span><\/span><\/h2>\nSpecial Note on Formal And Informal Sector:<\/span><\/h3>\nIn the mid 1950s, W. Arthur Lewis developed a theoretical model of economic development based on the assumption that there was an unlimited supply of labour in most developing countries and that this vast pool of surplus labour would be absorbed as the modern industrial sector in these countries grew. It was therefore assumed that the traditional sector comprised of petty traders, small producers and a range of casual jobs would eventually be absorbed into the formal economy and disappear.<\/strong><\/span><\/p>\nThis argument became less convincing since the 1970s when case studies on informal sector in various parts of the world began to reveal the highly active existence of men, women and children crowding at the bottom of the urban economy in Third World countries. So many studies have revealed the vast number of workers, in the Third World, striving hard to survive on the fruits of their labours outside the formal sector of the economy.<\/span><\/p>\n\nThe formal \u2013informal dichotomy can be regarded as a new variation on the dualism theories of the past.\u00a0<\/strong>In the colonial era a contrast was constructed between an invasive western capitalist sector and an opposing eastern non-capitalist people\u2019s economy. In post-colonial development theory the concept of dualism was applied to the dichotomy of traditional and modern. According to this view, the rural agricultural order was still predominantly pre-capitalist while the urban-based industrial economy was described as capitalist.\u00a0In the most recent phase of the dualism doctrine capitalism is the label of only the advanced segment of the urban milieu: the formal sector. The modes of production in the lower economic terrain, rather questionably labeled as non-capitalist, are characterized as the informal sector.<\/strong><\/span><\/li>\nIn operationalizing these variations on dualism, the contrasts are more significant than the specific characteristics of each segment.<\/strong>\u00a0For instance, it\u2019s entirely normal to describe the informal sector by summing up the absence of elements found in the formal sector. In the absence of a more analytical definition, the landscape of the informal sector becomes synonymous with the kaleidoscope of unregulated, poorly skilled and low-paid workers. Highlighting this chaotic assortment\u00a0Keith Hart coined\u00a0<\/strong>the term \u2018informal economy\u2019 in 1971.<\/span><\/li>\nThere are different terminologies used so interchangeably to signify the unorganized sector like informal sector, informal economy, and even informal labour which often highlights the most affected part of the sector, namely, the labour. \u201c Informal labour is a labour whose use is not governed either by state regulations or by collective agreements between workers and employers.\u201d<\/strong><\/span><\/li>\nInformal labour has, in different instances, been viewed as labour engaged in urban small scale enterprises, as self employment, as labour engaged in \u201ctraditional activities\u201d, as wholly unskilled labour, and as labour whose use is not subject to any rules or norms.\u00a0<\/strong>But none of this has any sound conceptual or empirical foundation. Informality does not imply a particular mode or location of labour use; informal labour can be in self-employment, in casual wage employment, and in regular wage employment, just as it can be in urban as well as in rural areas. There is little reason to think that informal labour must be confined to \u2018traditional\u2019 and \u2018modern\u2019 activities.<\/span><\/li>\nWe do not need to assume that informal labour is unskilled; only need to recognize that its skills are acquired outside the formal education system<\/strong>. And all the more in the context of the neo-liberal economic policies of hire and fire where\u00a0the organized sector itself is getting informalised through contractualisation, actualization<\/strong>, and outsourcing of labour, there are workers who are equally or even more educated and skilled, work better and even longer in so many of the organized sectors; but for no labour rights, wage, job or social security protection and for very dismal wages. The casual and contract labourers are under the working and living conditions that prevailed in the nineteenth century Europe.<\/span><\/li>\nSince the introduction of the informal sector concept, opinion has been divided as to its socioeconomic impact.<\/strong>\u00a0There are authors who positively point out the accelerated shift in livelihood patterns away from agriculture and villages to cities and towns in the Third World since the mid-twentieth century. But even if the masses of migrants flooding into urban areas were fortunate enough to establish a foothold, the vast majority of them could gain no access to the formal sector. It was still too small to cope with the continuous influx of newcomers.<\/strong><\/span><\/li>\nThe more critical analysis of researchers, who have observed that the formal sector remained inaccessible for reasons other than the inferior quality of the new urbanites\u2019 labour, and their other defects, rejects such an optimistic view.<\/strong>\u00a0The failure of the newcomers\u2019 efforts to find stable, decently paid and dignified work is in this alternative perception due mainly to a development strategy that, in the face of excess supply, seeks to keep the price of labour as low as possible, allows no room for collective action to reduce these people\u2019s vulnerability and refuses to provide this footloose workforce with public representation.\u00a0In short,<\/strong>\u00a0the lack of registration, organization and protection does not have its origin in the free play of social forces, but it\u2019s the deliberate product of economic interests that benefit from the state of informality in which a wide range of activities in all branches of the economy are kept, systematically and on a large scale, through evasion of labour laws and taxation.<\/span><\/li>\nIndeed, the informal sector is not a separate and closed circuit of work and labour.<\/strong>\u00a0There is the interaction, between the formal and informal sectors, and dependence of the latter on the former and even its subordination to it. Now with the neo-liberal economic policies there is the widespread informalization of the formal sector through downsizing, casualisation and contractualisation. In short the capitalist leaches become richer and richer by squeezing the life blood of the working force.<\/span><\/li>\n<\/ol>\nInformal Sector In India:<\/span><\/h3>\nThe Indian Economy is characterized by the existence of a vast majority of informal or unorganized labour employment<\/strong>. The Ministry of Labour, Government of India, has categorized the\u00a0Informal or unorganized labour<\/strong>\u00a0force under four groups in terms of Occupation, nature of employment, specially distressed categories and service categories.<\/span><\/p>\n\nIn terms of Occupation:<\/strong>\u00a0Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category.<\/span><\/li>\nIn terms of Nature of Employment:<\/strong>\u00a0Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this.<\/span><\/li>\nIn terms of Specially distressed categories:\u00a0<\/strong>Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and unloaders come under this category.<\/span><\/li>\nIn terms of Service categories:<\/strong>\u00a0Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors, News paper vendors etc. belong to this category.<\/span><\/li>\n<\/ol>\nIn addition to these four categories, there exists a large section of Informal or unorganized labour force\u00a0<\/strong>such as cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery workers, Power loom workers and Urban poor.<\/span><\/p>\nThough the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
Formal organization of work is one which is deliberately planned and designed and duly sanctioned by the competent authority. It is the organization of work as shown on the organization chart or as described by manuals and rulers. Formal organization of work is a system of consciously coordinated activities or forces of two or more persons. Individuals agree to work in an organization because they are prepared to contribute their services and receive in return certain benefits.\u00a0<\/strong>The working of the postal department can be given as a good example. The delivery of mail depends upon certain inter-related activities like sorting of the letters, distribution of mail to the concerned postmen and delivery at the door step of the individuals concerned.\u00a0Formal organization is a system of well defined jobs, each bearing a definite measure of authority, responsibility and accountability, the whole consciously designed to enable the people of the enterprise to work most effectively together in accomplishing their objects.<\/strong><\/span><\/p>\nFormal organization of work is the frame through which organized effort is directed for achieving the goals. It has certain distinct characteristics. They are:<\/span><\/p>\n\nLegal Status<\/strong><\/span><\/li>\nDivision of work<\/strong><\/span><\/li>\nPrimacy of structure<\/strong><\/span><\/li>\nPermanence<\/strong><\/span><\/li>\nRules and Regulations<\/strong><\/span><\/li>\n<\/ul>\n\nLegal Status:\u00a0<\/strong>A distinctive feature of formal organization work is that it is backed by legal sanctions. The establishment of any organization where work is formally organized requires the enactment by parliament or legislature. Public sector organisations like Life Insurance Corporation, Food Corporation, etc., were established on the basis of enactments by the union parliament. The law which enables the organization to come into existence also confers authority. The personnel working in the various departments in the discharge of their official work are backed by the authority of law.<\/span><\/li>\nDivision of work:\u00a0<\/strong>Division of work, which is the very basis for Formal organization of work, is made possible through formal organisation. Formal organization which indicates the levels of management, the designation of officers and their area of operation makes it very convenient for the division of work.<\/span><\/li>\nPrimacy of Structure:<\/strong>\u00a0In formal organization of work, the emphasis is laid on the design and structure. As Urwick has noted that \u201cabsence of structure is illogical, cruel, wasteful and inefficient\u201d. The structure is clearly defined and the roles of individuals working in organizations are clearly spelled out. The structure also describes the communication flows and the relationships between workers.<\/span><\/li>\nPermanence:\u00a0<\/strong>Formal organisation of work is relatively permanent than informal oganisation of work. Though they adopt to environmental conditions and change the structure and even objectives, they are generally created to last a long time. Such work not only last long, but they also grow over time.<\/span><\/li>\nRules and Regulations:<\/strong>\u00a0Another important feature of a formal organization is that it is done in accordance with well-formulated rules and regulations. Officials involved in formal organizations of work cannot act as per their likes and dislikes but should function within the framework of the stipulated rules and regulations.<\/span><\/li>\nIn formal organisation of work it is important to determine the goals and objectives<\/strong>\u00a0in the absence of which it would be difficult to direct skills of men and women to accomplish the stated goals. These goals and objectives spells out the nature and scope of the activities of different persons working in the organization. In formal organisation of work every higher level functionary coordinates the activities of the officers immediately below him.\n<\/span><\/li>\n<\/ol>\nInformal Organisation of Work:<\/span><\/h3>\nBroadly speaking, Informal Organisation of Work is characterized by:<\/strong><\/span><\/p>\n\nLow levels of skill:<\/strong>\u00a0Workers in Informal Organisation of Work have low levels of education and thus they have low levels of skills. This is the reason why they are engaged in jobs involving low technology. Worker in the formal sector have skill and there position in the labour is better.<\/span><\/li>\nEasy entry:\u00a0<\/strong>Getting work in informal sector is comparatively easier than in the formal sector. Any able bodied person, irrespective of the skills possessed can become a day labourer. With minimum investment the same person can become a street vendor and sell her\/his wares in the market. The people need not money to invest in a shop. In this way the informal sector is able to absorb more workers who would not get any work because they are either not qualified or they do not have capital for investing in business.<\/span><\/li>\nLow paid employment:<\/strong>\u00a0Because of the requirement of low skill and the easy entry, work in the informal sector has low returns. Workers who offer their labour are not paid high wages. In fact, the biggest grievance against this sector is that the wages are many times below sustenance level. In many cases, low wages drive other members of the family in informal workforce because the main wage earned is not sufficient for sustaining a household. In this sense, children too may be encouraged to join the labour force.<\/span><\/li>\nImmigrant labour:\u00a0<\/strong>Informal sector is largely composed of immigrant. Most of the workers come to the city from rural areas in search of a livelihood. Hence migrant status is a characteristic of informal sector.<\/span><\/li>\n<\/ol>\nInformal organization of work is characterized by aggregate of personal contacts and interactions and the associated grouping of people. While the formal organization of work emphasizes on the structure, informal organisation of work emphasizes on personality and human emotions. The superior-subordinate relations between important officers may be influenced by the commanding personality or the powerful connections of the subordinates. In informal organization of work, roles are assigned without recognised status.<\/span><\/p>\nThus informal organisations of work are ill-defined and difficult to determine. They do not have definite goals. The relations between workers, therefore, are not specific. Spontaneous, unofficial and unstructured relations lead to favourable sentiments which in turn increase the interactions and strengthen the bonds of identification. Because of informal nature, absence of goals and unstructured relationship, the formal system of controls do not operate in informal organisations.<\/span><\/p>\n<\/span>The unorganised sector in India<\/span><\/span><\/h2>\nSpecial Note on Formal And Informal Sector:<\/span><\/h3>\nIn the mid 1950s, W. Arthur Lewis developed a theoretical model of economic development based on the assumption that there was an unlimited supply of labour in most developing countries and that this vast pool of surplus labour would be absorbed as the modern industrial sector in these countries grew. It was therefore assumed that the traditional sector comprised of petty traders, small producers and a range of casual jobs would eventually be absorbed into the formal economy and disappear.<\/strong><\/span><\/p>\nThis argument became less convincing since the 1970s when case studies on informal sector in various parts of the world began to reveal the highly active existence of men, women and children crowding at the bottom of the urban economy in Third World countries. So many studies have revealed the vast number of workers, in the Third World, striving hard to survive on the fruits of their labours outside the formal sector of the economy.<\/span><\/p>\n\nThe formal \u2013informal dichotomy can be regarded as a new variation on the dualism theories of the past.\u00a0<\/strong>In the colonial era a contrast was constructed between an invasive western capitalist sector and an opposing eastern non-capitalist people\u2019s economy. In post-colonial development theory the concept of dualism was applied to the dichotomy of traditional and modern. According to this view, the rural agricultural order was still predominantly pre-capitalist while the urban-based industrial economy was described as capitalist.\u00a0In the most recent phase of the dualism doctrine capitalism is the label of only the advanced segment of the urban milieu: the formal sector. The modes of production in the lower economic terrain, rather questionably labeled as non-capitalist, are characterized as the informal sector.<\/strong><\/span><\/li>\nIn operationalizing these variations on dualism, the contrasts are more significant than the specific characteristics of each segment.<\/strong>\u00a0For instance, it\u2019s entirely normal to describe the informal sector by summing up the absence of elements found in the formal sector. In the absence of a more analytical definition, the landscape of the informal sector becomes synonymous with the kaleidoscope of unregulated, poorly skilled and low-paid workers. Highlighting this chaotic assortment\u00a0Keith Hart coined\u00a0<\/strong>the term \u2018informal economy\u2019 in 1971.<\/span><\/li>\nThere are different terminologies used so interchangeably to signify the unorganized sector like informal sector, informal economy, and even informal labour which often highlights the most affected part of the sector, namely, the labour. \u201c Informal labour is a labour whose use is not governed either by state regulations or by collective agreements between workers and employers.\u201d<\/strong><\/span><\/li>\nInformal labour has, in different instances, been viewed as labour engaged in urban small scale enterprises, as self employment, as labour engaged in \u201ctraditional activities\u201d, as wholly unskilled labour, and as labour whose use is not subject to any rules or norms.\u00a0<\/strong>But none of this has any sound conceptual or empirical foundation. Informality does not imply a particular mode or location of labour use; informal labour can be in self-employment, in casual wage employment, and in regular wage employment, just as it can be in urban as well as in rural areas. There is little reason to think that informal labour must be confined to \u2018traditional\u2019 and \u2018modern\u2019 activities.<\/span><\/li>\nWe do not need to assume that informal labour is unskilled; only need to recognize that its skills are acquired outside the formal education system<\/strong>. And all the more in the context of the neo-liberal economic policies of hire and fire where\u00a0the organized sector itself is getting informalised through contractualisation, actualization<\/strong>, and outsourcing of labour, there are workers who are equally or even more educated and skilled, work better and even longer in so many of the organized sectors; but for no labour rights, wage, job or social security protection and for very dismal wages. The casual and contract labourers are under the working and living conditions that prevailed in the nineteenth century Europe.<\/span><\/li>\nSince the introduction of the informal sector concept, opinion has been divided as to its socioeconomic impact.<\/strong>\u00a0There are authors who positively point out the accelerated shift in livelihood patterns away from agriculture and villages to cities and towns in the Third World since the mid-twentieth century. But even if the masses of migrants flooding into urban areas were fortunate enough to establish a foothold, the vast majority of them could gain no access to the formal sector. It was still too small to cope with the continuous influx of newcomers.<\/strong><\/span><\/li>\nThe more critical analysis of researchers, who have observed that the formal sector remained inaccessible for reasons other than the inferior quality of the new urbanites\u2019 labour, and their other defects, rejects such an optimistic view.<\/strong>\u00a0The failure of the newcomers\u2019 efforts to find stable, decently paid and dignified work is in this alternative perception due mainly to a development strategy that, in the face of excess supply, seeks to keep the price of labour as low as possible, allows no room for collective action to reduce these people\u2019s vulnerability and refuses to provide this footloose workforce with public representation.\u00a0In short,<\/strong>\u00a0the lack of registration, organization and protection does not have its origin in the free play of social forces, but it\u2019s the deliberate product of economic interests that benefit from the state of informality in which a wide range of activities in all branches of the economy are kept, systematically and on a large scale, through evasion of labour laws and taxation.<\/span><\/li>\nIndeed, the informal sector is not a separate and closed circuit of work and labour.<\/strong>\u00a0There is the interaction, between the formal and informal sectors, and dependence of the latter on the former and even its subordination to it. Now with the neo-liberal economic policies there is the widespread informalization of the formal sector through downsizing, casualisation and contractualisation. In short the capitalist leaches become richer and richer by squeezing the life blood of the working force.<\/span><\/li>\n<\/ol>\nInformal Sector In India:<\/span><\/h3>\nThe Indian Economy is characterized by the existence of a vast majority of informal or unorganized labour employment<\/strong>. The Ministry of Labour, Government of India, has categorized the\u00a0Informal or unorganized labour<\/strong>\u00a0force under four groups in terms of Occupation, nature of employment, specially distressed categories and service categories.<\/span><\/p>\n\nIn terms of Occupation:<\/strong>\u00a0Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category.<\/span><\/li>\nIn terms of Nature of Employment:<\/strong>\u00a0Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this.<\/span><\/li>\nIn terms of Specially distressed categories:\u00a0<\/strong>Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and unloaders come under this category.<\/span><\/li>\nIn terms of Service categories:<\/strong>\u00a0Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors, News paper vendors etc. belong to this category.<\/span><\/li>\n<\/ol>\nIn addition to these four categories, there exists a large section of Informal or unorganized labour force\u00a0<\/strong>such as cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery workers, Power loom workers and Urban poor.<\/span><\/p>\nThough the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
Formal organization of work is the frame through which organized effort is directed for achieving the goals. It has certain distinct characteristics. They are:<\/span><\/p>\n\nLegal Status<\/strong><\/span><\/li>\nDivision of work<\/strong><\/span><\/li>\nPrimacy of structure<\/strong><\/span><\/li>\nPermanence<\/strong><\/span><\/li>\nRules and Regulations<\/strong><\/span><\/li>\n<\/ul>\n\nLegal Status:\u00a0<\/strong>A distinctive feature of formal organization work is that it is backed by legal sanctions. The establishment of any organization where work is formally organized requires the enactment by parliament or legislature. Public sector organisations like Life Insurance Corporation, Food Corporation, etc., were established on the basis of enactments by the union parliament. The law which enables the organization to come into existence also confers authority. The personnel working in the various departments in the discharge of their official work are backed by the authority of law.<\/span><\/li>\nDivision of work:\u00a0<\/strong>Division of work, which is the very basis for Formal organization of work, is made possible through formal organisation. Formal organization which indicates the levels of management, the designation of officers and their area of operation makes it very convenient for the division of work.<\/span><\/li>\nPrimacy of Structure:<\/strong>\u00a0In formal organization of work, the emphasis is laid on the design and structure. As Urwick has noted that \u201cabsence of structure is illogical, cruel, wasteful and inefficient\u201d. The structure is clearly defined and the roles of individuals working in organizations are clearly spelled out. The structure also describes the communication flows and the relationships between workers.<\/span><\/li>\nPermanence:\u00a0<\/strong>Formal organisation of work is relatively permanent than informal oganisation of work. Though they adopt to environmental conditions and change the structure and even objectives, they are generally created to last a long time. Such work not only last long, but they also grow over time.<\/span><\/li>\nRules and Regulations:<\/strong>\u00a0Another important feature of a formal organization is that it is done in accordance with well-formulated rules and regulations. Officials involved in formal organizations of work cannot act as per their likes and dislikes but should function within the framework of the stipulated rules and regulations.<\/span><\/li>\nIn formal organisation of work it is important to determine the goals and objectives<\/strong>\u00a0in the absence of which it would be difficult to direct skills of men and women to accomplish the stated goals. These goals and objectives spells out the nature and scope of the activities of different persons working in the organization. In formal organisation of work every higher level functionary coordinates the activities of the officers immediately below him.\n<\/span><\/li>\n<\/ol>\nInformal Organisation of Work:<\/span><\/h3>\nBroadly speaking, Informal Organisation of Work is characterized by:<\/strong><\/span><\/p>\n\nLow levels of skill:<\/strong>\u00a0Workers in Informal Organisation of Work have low levels of education and thus they have low levels of skills. This is the reason why they are engaged in jobs involving low technology. Worker in the formal sector have skill and there position in the labour is better.<\/span><\/li>\nEasy entry:\u00a0<\/strong>Getting work in informal sector is comparatively easier than in the formal sector. Any able bodied person, irrespective of the skills possessed can become a day labourer. With minimum investment the same person can become a street vendor and sell her\/his wares in the market. The people need not money to invest in a shop. In this way the informal sector is able to absorb more workers who would not get any work because they are either not qualified or they do not have capital for investing in business.<\/span><\/li>\nLow paid employment:<\/strong>\u00a0Because of the requirement of low skill and the easy entry, work in the informal sector has low returns. Workers who offer their labour are not paid high wages. In fact, the biggest grievance against this sector is that the wages are many times below sustenance level. In many cases, low wages drive other members of the family in informal workforce because the main wage earned is not sufficient for sustaining a household. In this sense, children too may be encouraged to join the labour force.<\/span><\/li>\nImmigrant labour:\u00a0<\/strong>Informal sector is largely composed of immigrant. Most of the workers come to the city from rural areas in search of a livelihood. Hence migrant status is a characteristic of informal sector.<\/span><\/li>\n<\/ol>\nInformal organization of work is characterized by aggregate of personal contacts and interactions and the associated grouping of people. While the formal organization of work emphasizes on the structure, informal organisation of work emphasizes on personality and human emotions. The superior-subordinate relations between important officers may be influenced by the commanding personality or the powerful connections of the subordinates. In informal organization of work, roles are assigned without recognised status.<\/span><\/p>\nThus informal organisations of work are ill-defined and difficult to determine. They do not have definite goals. The relations between workers, therefore, are not specific. Spontaneous, unofficial and unstructured relations lead to favourable sentiments which in turn increase the interactions and strengthen the bonds of identification. Because of informal nature, absence of goals and unstructured relationship, the formal system of controls do not operate in informal organisations.<\/span><\/p>\n<\/span>The unorganised sector in India<\/span><\/span><\/h2>\nSpecial Note on Formal And Informal Sector:<\/span><\/h3>\nIn the mid 1950s, W. Arthur Lewis developed a theoretical model of economic development based on the assumption that there was an unlimited supply of labour in most developing countries and that this vast pool of surplus labour would be absorbed as the modern industrial sector in these countries grew. It was therefore assumed that the traditional sector comprised of petty traders, small producers and a range of casual jobs would eventually be absorbed into the formal economy and disappear.<\/strong><\/span><\/p>\nThis argument became less convincing since the 1970s when case studies on informal sector in various parts of the world began to reveal the highly active existence of men, women and children crowding at the bottom of the urban economy in Third World countries. So many studies have revealed the vast number of workers, in the Third World, striving hard to survive on the fruits of their labours outside the formal sector of the economy.<\/span><\/p>\n\nThe formal \u2013informal dichotomy can be regarded as a new variation on the dualism theories of the past.\u00a0<\/strong>In the colonial era a contrast was constructed between an invasive western capitalist sector and an opposing eastern non-capitalist people\u2019s economy. In post-colonial development theory the concept of dualism was applied to the dichotomy of traditional and modern. According to this view, the rural agricultural order was still predominantly pre-capitalist while the urban-based industrial economy was described as capitalist.\u00a0In the most recent phase of the dualism doctrine capitalism is the label of only the advanced segment of the urban milieu: the formal sector. The modes of production in the lower economic terrain, rather questionably labeled as non-capitalist, are characterized as the informal sector.<\/strong><\/span><\/li>\nIn operationalizing these variations on dualism, the contrasts are more significant than the specific characteristics of each segment.<\/strong>\u00a0For instance, it\u2019s entirely normal to describe the informal sector by summing up the absence of elements found in the formal sector. In the absence of a more analytical definition, the landscape of the informal sector becomes synonymous with the kaleidoscope of unregulated, poorly skilled and low-paid workers. Highlighting this chaotic assortment\u00a0Keith Hart coined\u00a0<\/strong>the term \u2018informal economy\u2019 in 1971.<\/span><\/li>\nThere are different terminologies used so interchangeably to signify the unorganized sector like informal sector, informal economy, and even informal labour which often highlights the most affected part of the sector, namely, the labour. \u201c Informal labour is a labour whose use is not governed either by state regulations or by collective agreements between workers and employers.\u201d<\/strong><\/span><\/li>\nInformal labour has, in different instances, been viewed as labour engaged in urban small scale enterprises, as self employment, as labour engaged in \u201ctraditional activities\u201d, as wholly unskilled labour, and as labour whose use is not subject to any rules or norms.\u00a0<\/strong>But none of this has any sound conceptual or empirical foundation. Informality does not imply a particular mode or location of labour use; informal labour can be in self-employment, in casual wage employment, and in regular wage employment, just as it can be in urban as well as in rural areas. There is little reason to think that informal labour must be confined to \u2018traditional\u2019 and \u2018modern\u2019 activities.<\/span><\/li>\nWe do not need to assume that informal labour is unskilled; only need to recognize that its skills are acquired outside the formal education system<\/strong>. And all the more in the context of the neo-liberal economic policies of hire and fire where\u00a0the organized sector itself is getting informalised through contractualisation, actualization<\/strong>, and outsourcing of labour, there are workers who are equally or even more educated and skilled, work better and even longer in so many of the organized sectors; but for no labour rights, wage, job or social security protection and for very dismal wages. The casual and contract labourers are under the working and living conditions that prevailed in the nineteenth century Europe.<\/span><\/li>\nSince the introduction of the informal sector concept, opinion has been divided as to its socioeconomic impact.<\/strong>\u00a0There are authors who positively point out the accelerated shift in livelihood patterns away from agriculture and villages to cities and towns in the Third World since the mid-twentieth century. But even if the masses of migrants flooding into urban areas were fortunate enough to establish a foothold, the vast majority of them could gain no access to the formal sector. It was still too small to cope with the continuous influx of newcomers.<\/strong><\/span><\/li>\nThe more critical analysis of researchers, who have observed that the formal sector remained inaccessible for reasons other than the inferior quality of the new urbanites\u2019 labour, and their other defects, rejects such an optimistic view.<\/strong>\u00a0The failure of the newcomers\u2019 efforts to find stable, decently paid and dignified work is in this alternative perception due mainly to a development strategy that, in the face of excess supply, seeks to keep the price of labour as low as possible, allows no room for collective action to reduce these people\u2019s vulnerability and refuses to provide this footloose workforce with public representation.\u00a0In short,<\/strong>\u00a0the lack of registration, organization and protection does not have its origin in the free play of social forces, but it\u2019s the deliberate product of economic interests that benefit from the state of informality in which a wide range of activities in all branches of the economy are kept, systematically and on a large scale, through evasion of labour laws and taxation.<\/span><\/li>\nIndeed, the informal sector is not a separate and closed circuit of work and labour.<\/strong>\u00a0There is the interaction, between the formal and informal sectors, and dependence of the latter on the former and even its subordination to it. Now with the neo-liberal economic policies there is the widespread informalization of the formal sector through downsizing, casualisation and contractualisation. In short the capitalist leaches become richer and richer by squeezing the life blood of the working force.<\/span><\/li>\n<\/ol>\nInformal Sector In India:<\/span><\/h3>\nThe Indian Economy is characterized by the existence of a vast majority of informal or unorganized labour employment<\/strong>. The Ministry of Labour, Government of India, has categorized the\u00a0Informal or unorganized labour<\/strong>\u00a0force under four groups in terms of Occupation, nature of employment, specially distressed categories and service categories.<\/span><\/p>\n\nIn terms of Occupation:<\/strong>\u00a0Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category.<\/span><\/li>\nIn terms of Nature of Employment:<\/strong>\u00a0Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this.<\/span><\/li>\nIn terms of Specially distressed categories:\u00a0<\/strong>Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and unloaders come under this category.<\/span><\/li>\nIn terms of Service categories:<\/strong>\u00a0Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors, News paper vendors etc. belong to this category.<\/span><\/li>\n<\/ol>\nIn addition to these four categories, there exists a large section of Informal or unorganized labour force\u00a0<\/strong>such as cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery workers, Power loom workers and Urban poor.<\/span><\/p>\nThough the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
Broadly speaking, Informal Organisation of Work is characterized by:<\/strong><\/span><\/p>\n\nLow levels of skill:<\/strong>\u00a0Workers in Informal Organisation of Work have low levels of education and thus they have low levels of skills. This is the reason why they are engaged in jobs involving low technology. Worker in the formal sector have skill and there position in the labour is better.<\/span><\/li>\nEasy entry:\u00a0<\/strong>Getting work in informal sector is comparatively easier than in the formal sector. Any able bodied person, irrespective of the skills possessed can become a day labourer. With minimum investment the same person can become a street vendor and sell her\/his wares in the market. The people need not money to invest in a shop. In this way the informal sector is able to absorb more workers who would not get any work because they are either not qualified or they do not have capital for investing in business.<\/span><\/li>\nLow paid employment:<\/strong>\u00a0Because of the requirement of low skill and the easy entry, work in the informal sector has low returns. Workers who offer their labour are not paid high wages. In fact, the biggest grievance against this sector is that the wages are many times below sustenance level. In many cases, low wages drive other members of the family in informal workforce because the main wage earned is not sufficient for sustaining a household. In this sense, children too may be encouraged to join the labour force.<\/span><\/li>\nImmigrant labour:\u00a0<\/strong>Informal sector is largely composed of immigrant. Most of the workers come to the city from rural areas in search of a livelihood. Hence migrant status is a characteristic of informal sector.<\/span><\/li>\n<\/ol>\nInformal organization of work is characterized by aggregate of personal contacts and interactions and the associated grouping of people. While the formal organization of work emphasizes on the structure, informal organisation of work emphasizes on personality and human emotions. The superior-subordinate relations between important officers may be influenced by the commanding personality or the powerful connections of the subordinates. In informal organization of work, roles are assigned without recognised status.<\/span><\/p>\nThus informal organisations of work are ill-defined and difficult to determine. They do not have definite goals. The relations between workers, therefore, are not specific. Spontaneous, unofficial and unstructured relations lead to favourable sentiments which in turn increase the interactions and strengthen the bonds of identification. Because of informal nature, absence of goals and unstructured relationship, the formal system of controls do not operate in informal organisations.<\/span><\/p>\n<\/span>The unorganised sector in India<\/span><\/span><\/h2>\nSpecial Note on Formal And Informal Sector:<\/span><\/h3>\nIn the mid 1950s, W. Arthur Lewis developed a theoretical model of economic development based on the assumption that there was an unlimited supply of labour in most developing countries and that this vast pool of surplus labour would be absorbed as the modern industrial sector in these countries grew. It was therefore assumed that the traditional sector comprised of petty traders, small producers and a range of casual jobs would eventually be absorbed into the formal economy and disappear.<\/strong><\/span><\/p>\nThis argument became less convincing since the 1970s when case studies on informal sector in various parts of the world began to reveal the highly active existence of men, women and children crowding at the bottom of the urban economy in Third World countries. So many studies have revealed the vast number of workers, in the Third World, striving hard to survive on the fruits of their labours outside the formal sector of the economy.<\/span><\/p>\n\nThe formal \u2013informal dichotomy can be regarded as a new variation on the dualism theories of the past.\u00a0<\/strong>In the colonial era a contrast was constructed between an invasive western capitalist sector and an opposing eastern non-capitalist people\u2019s economy. In post-colonial development theory the concept of dualism was applied to the dichotomy of traditional and modern. According to this view, the rural agricultural order was still predominantly pre-capitalist while the urban-based industrial economy was described as capitalist.\u00a0In the most recent phase of the dualism doctrine capitalism is the label of only the advanced segment of the urban milieu: the formal sector. The modes of production in the lower economic terrain, rather questionably labeled as non-capitalist, are characterized as the informal sector.<\/strong><\/span><\/li>\nIn operationalizing these variations on dualism, the contrasts are more significant than the specific characteristics of each segment.<\/strong>\u00a0For instance, it\u2019s entirely normal to describe the informal sector by summing up the absence of elements found in the formal sector. In the absence of a more analytical definition, the landscape of the informal sector becomes synonymous with the kaleidoscope of unregulated, poorly skilled and low-paid workers. Highlighting this chaotic assortment\u00a0Keith Hart coined\u00a0<\/strong>the term \u2018informal economy\u2019 in 1971.<\/span><\/li>\nThere are different terminologies used so interchangeably to signify the unorganized sector like informal sector, informal economy, and even informal labour which often highlights the most affected part of the sector, namely, the labour. \u201c Informal labour is a labour whose use is not governed either by state regulations or by collective agreements between workers and employers.\u201d<\/strong><\/span><\/li>\nInformal labour has, in different instances, been viewed as labour engaged in urban small scale enterprises, as self employment, as labour engaged in \u201ctraditional activities\u201d, as wholly unskilled labour, and as labour whose use is not subject to any rules or norms.\u00a0<\/strong>But none of this has any sound conceptual or empirical foundation. Informality does not imply a particular mode or location of labour use; informal labour can be in self-employment, in casual wage employment, and in regular wage employment, just as it can be in urban as well as in rural areas. There is little reason to think that informal labour must be confined to \u2018traditional\u2019 and \u2018modern\u2019 activities.<\/span><\/li>\nWe do not need to assume that informal labour is unskilled; only need to recognize that its skills are acquired outside the formal education system<\/strong>. And all the more in the context of the neo-liberal economic policies of hire and fire where\u00a0the organized sector itself is getting informalised through contractualisation, actualization<\/strong>, and outsourcing of labour, there are workers who are equally or even more educated and skilled, work better and even longer in so many of the organized sectors; but for no labour rights, wage, job or social security protection and for very dismal wages. The casual and contract labourers are under the working and living conditions that prevailed in the nineteenth century Europe.<\/span><\/li>\nSince the introduction of the informal sector concept, opinion has been divided as to its socioeconomic impact.<\/strong>\u00a0There are authors who positively point out the accelerated shift in livelihood patterns away from agriculture and villages to cities and towns in the Third World since the mid-twentieth century. But even if the masses of migrants flooding into urban areas were fortunate enough to establish a foothold, the vast majority of them could gain no access to the formal sector. It was still too small to cope with the continuous influx of newcomers.<\/strong><\/span><\/li>\nThe more critical analysis of researchers, who have observed that the formal sector remained inaccessible for reasons other than the inferior quality of the new urbanites\u2019 labour, and their other defects, rejects such an optimistic view.<\/strong>\u00a0The failure of the newcomers\u2019 efforts to find stable, decently paid and dignified work is in this alternative perception due mainly to a development strategy that, in the face of excess supply, seeks to keep the price of labour as low as possible, allows no room for collective action to reduce these people\u2019s vulnerability and refuses to provide this footloose workforce with public representation.\u00a0In short,<\/strong>\u00a0the lack of registration, organization and protection does not have its origin in the free play of social forces, but it\u2019s the deliberate product of economic interests that benefit from the state of informality in which a wide range of activities in all branches of the economy are kept, systematically and on a large scale, through evasion of labour laws and taxation.<\/span><\/li>\nIndeed, the informal sector is not a separate and closed circuit of work and labour.<\/strong>\u00a0There is the interaction, between the formal and informal sectors, and dependence of the latter on the former and even its subordination to it. Now with the neo-liberal economic policies there is the widespread informalization of the formal sector through downsizing, casualisation and contractualisation. In short the capitalist leaches become richer and richer by squeezing the life blood of the working force.<\/span><\/li>\n<\/ol>\nInformal Sector In India:<\/span><\/h3>\nThe Indian Economy is characterized by the existence of a vast majority of informal or unorganized labour employment<\/strong>. The Ministry of Labour, Government of India, has categorized the\u00a0Informal or unorganized labour<\/strong>\u00a0force under four groups in terms of Occupation, nature of employment, specially distressed categories and service categories.<\/span><\/p>\n\nIn terms of Occupation:<\/strong>\u00a0Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category.<\/span><\/li>\nIn terms of Nature of Employment:<\/strong>\u00a0Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this.<\/span><\/li>\nIn terms of Specially distressed categories:\u00a0<\/strong>Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and unloaders come under this category.<\/span><\/li>\nIn terms of Service categories:<\/strong>\u00a0Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors, News paper vendors etc. belong to this category.<\/span><\/li>\n<\/ol>\nIn addition to these four categories, there exists a large section of Informal or unorganized labour force\u00a0<\/strong>such as cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery workers, Power loom workers and Urban poor.<\/span><\/p>\nThough the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
Informal organization of work is characterized by aggregate of personal contacts and interactions and the associated grouping of people. While the formal organization of work emphasizes on the structure, informal organisation of work emphasizes on personality and human emotions. The superior-subordinate relations between important officers may be influenced by the commanding personality or the powerful connections of the subordinates. In informal organization of work, roles are assigned without recognised status.<\/span><\/p>\nThus informal organisations of work are ill-defined and difficult to determine. They do not have definite goals. The relations between workers, therefore, are not specific. Spontaneous, unofficial and unstructured relations lead to favourable sentiments which in turn increase the interactions and strengthen the bonds of identification. Because of informal nature, absence of goals and unstructured relationship, the formal system of controls do not operate in informal organisations.<\/span><\/p>\n<\/span>The unorganised sector in India<\/span><\/span><\/h2>\nSpecial Note on Formal And Informal Sector:<\/span><\/h3>\nIn the mid 1950s, W. Arthur Lewis developed a theoretical model of economic development based on the assumption that there was an unlimited supply of labour in most developing countries and that this vast pool of surplus labour would be absorbed as the modern industrial sector in these countries grew. It was therefore assumed that the traditional sector comprised of petty traders, small producers and a range of casual jobs would eventually be absorbed into the formal economy and disappear.<\/strong><\/span><\/p>\nThis argument became less convincing since the 1970s when case studies on informal sector in various parts of the world began to reveal the highly active existence of men, women and children crowding at the bottom of the urban economy in Third World countries. So many studies have revealed the vast number of workers, in the Third World, striving hard to survive on the fruits of their labours outside the formal sector of the economy.<\/span><\/p>\n\nThe formal \u2013informal dichotomy can be regarded as a new variation on the dualism theories of the past.\u00a0<\/strong>In the colonial era a contrast was constructed between an invasive western capitalist sector and an opposing eastern non-capitalist people\u2019s economy. In post-colonial development theory the concept of dualism was applied to the dichotomy of traditional and modern. According to this view, the rural agricultural order was still predominantly pre-capitalist while the urban-based industrial economy was described as capitalist.\u00a0In the most recent phase of the dualism doctrine capitalism is the label of only the advanced segment of the urban milieu: the formal sector. The modes of production in the lower economic terrain, rather questionably labeled as non-capitalist, are characterized as the informal sector.<\/strong><\/span><\/li>\nIn operationalizing these variations on dualism, the contrasts are more significant than the specific characteristics of each segment.<\/strong>\u00a0For instance, it\u2019s entirely normal to describe the informal sector by summing up the absence of elements found in the formal sector. In the absence of a more analytical definition, the landscape of the informal sector becomes synonymous with the kaleidoscope of unregulated, poorly skilled and low-paid workers. Highlighting this chaotic assortment\u00a0Keith Hart coined\u00a0<\/strong>the term \u2018informal economy\u2019 in 1971.<\/span><\/li>\nThere are different terminologies used so interchangeably to signify the unorganized sector like informal sector, informal economy, and even informal labour which often highlights the most affected part of the sector, namely, the labour. \u201c Informal labour is a labour whose use is not governed either by state regulations or by collective agreements between workers and employers.\u201d<\/strong><\/span><\/li>\nInformal labour has, in different instances, been viewed as labour engaged in urban small scale enterprises, as self employment, as labour engaged in \u201ctraditional activities\u201d, as wholly unskilled labour, and as labour whose use is not subject to any rules or norms.\u00a0<\/strong>But none of this has any sound conceptual or empirical foundation. Informality does not imply a particular mode or location of labour use; informal labour can be in self-employment, in casual wage employment, and in regular wage employment, just as it can be in urban as well as in rural areas. There is little reason to think that informal labour must be confined to \u2018traditional\u2019 and \u2018modern\u2019 activities.<\/span><\/li>\nWe do not need to assume that informal labour is unskilled; only need to recognize that its skills are acquired outside the formal education system<\/strong>. And all the more in the context of the neo-liberal economic policies of hire and fire where\u00a0the organized sector itself is getting informalised through contractualisation, actualization<\/strong>, and outsourcing of labour, there are workers who are equally or even more educated and skilled, work better and even longer in so many of the organized sectors; but for no labour rights, wage, job or social security protection and for very dismal wages. The casual and contract labourers are under the working and living conditions that prevailed in the nineteenth century Europe.<\/span><\/li>\nSince the introduction of the informal sector concept, opinion has been divided as to its socioeconomic impact.<\/strong>\u00a0There are authors who positively point out the accelerated shift in livelihood patterns away from agriculture and villages to cities and towns in the Third World since the mid-twentieth century. But even if the masses of migrants flooding into urban areas were fortunate enough to establish a foothold, the vast majority of them could gain no access to the formal sector. It was still too small to cope with the continuous influx of newcomers.<\/strong><\/span><\/li>\nThe more critical analysis of researchers, who have observed that the formal sector remained inaccessible for reasons other than the inferior quality of the new urbanites\u2019 labour, and their other defects, rejects such an optimistic view.<\/strong>\u00a0The failure of the newcomers\u2019 efforts to find stable, decently paid and dignified work is in this alternative perception due mainly to a development strategy that, in the face of excess supply, seeks to keep the price of labour as low as possible, allows no room for collective action to reduce these people\u2019s vulnerability and refuses to provide this footloose workforce with public representation.\u00a0In short,<\/strong>\u00a0the lack of registration, organization and protection does not have its origin in the free play of social forces, but it\u2019s the deliberate product of economic interests that benefit from the state of informality in which a wide range of activities in all branches of the economy are kept, systematically and on a large scale, through evasion of labour laws and taxation.<\/span><\/li>\nIndeed, the informal sector is not a separate and closed circuit of work and labour.<\/strong>\u00a0There is the interaction, between the formal and informal sectors, and dependence of the latter on the former and even its subordination to it. Now with the neo-liberal economic policies there is the widespread informalization of the formal sector through downsizing, casualisation and contractualisation. In short the capitalist leaches become richer and richer by squeezing the life blood of the working force.<\/span><\/li>\n<\/ol>\nInformal Sector In India:<\/span><\/h3>\nThe Indian Economy is characterized by the existence of a vast majority of informal or unorganized labour employment<\/strong>. The Ministry of Labour, Government of India, has categorized the\u00a0Informal or unorganized labour<\/strong>\u00a0force under four groups in terms of Occupation, nature of employment, specially distressed categories and service categories.<\/span><\/p>\n\nIn terms of Occupation:<\/strong>\u00a0Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category.<\/span><\/li>\nIn terms of Nature of Employment:<\/strong>\u00a0Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this.<\/span><\/li>\nIn terms of Specially distressed categories:\u00a0<\/strong>Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and unloaders come under this category.<\/span><\/li>\nIn terms of Service categories:<\/strong>\u00a0Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors, News paper vendors etc. belong to this category.<\/span><\/li>\n<\/ol>\nIn addition to these four categories, there exists a large section of Informal or unorganized labour force\u00a0<\/strong>such as cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery workers, Power loom workers and Urban poor.<\/span><\/p>\nThough the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
Thus informal organisations of work are ill-defined and difficult to determine. They do not have definite goals. The relations between workers, therefore, are not specific. Spontaneous, unofficial and unstructured relations lead to favourable sentiments which in turn increase the interactions and strengthen the bonds of identification. Because of informal nature, absence of goals and unstructured relationship, the formal system of controls do not operate in informal organisations.<\/span><\/p>\n<\/span>The unorganised sector in India<\/span><\/span><\/h2>\nSpecial Note on Formal And Informal Sector:<\/span><\/h3>\nIn the mid 1950s, W. Arthur Lewis developed a theoretical model of economic development based on the assumption that there was an unlimited supply of labour in most developing countries and that this vast pool of surplus labour would be absorbed as the modern industrial sector in these countries grew. It was therefore assumed that the traditional sector comprised of petty traders, small producers and a range of casual jobs would eventually be absorbed into the formal economy and disappear.<\/strong><\/span><\/p>\nThis argument became less convincing since the 1970s when case studies on informal sector in various parts of the world began to reveal the highly active existence of men, women and children crowding at the bottom of the urban economy in Third World countries. So many studies have revealed the vast number of workers, in the Third World, striving hard to survive on the fruits of their labours outside the formal sector of the economy.<\/span><\/p>\n\nThe formal \u2013informal dichotomy can be regarded as a new variation on the dualism theories of the past.\u00a0<\/strong>In the colonial era a contrast was constructed between an invasive western capitalist sector and an opposing eastern non-capitalist people\u2019s economy. In post-colonial development theory the concept of dualism was applied to the dichotomy of traditional and modern. According to this view, the rural agricultural order was still predominantly pre-capitalist while the urban-based industrial economy was described as capitalist.\u00a0In the most recent phase of the dualism doctrine capitalism is the label of only the advanced segment of the urban milieu: the formal sector. The modes of production in the lower economic terrain, rather questionably labeled as non-capitalist, are characterized as the informal sector.<\/strong><\/span><\/li>\nIn operationalizing these variations on dualism, the contrasts are more significant than the specific characteristics of each segment.<\/strong>\u00a0For instance, it\u2019s entirely normal to describe the informal sector by summing up the absence of elements found in the formal sector. In the absence of a more analytical definition, the landscape of the informal sector becomes synonymous with the kaleidoscope of unregulated, poorly skilled and low-paid workers. Highlighting this chaotic assortment\u00a0Keith Hart coined\u00a0<\/strong>the term \u2018informal economy\u2019 in 1971.<\/span><\/li>\nThere are different terminologies used so interchangeably to signify the unorganized sector like informal sector, informal economy, and even informal labour which often highlights the most affected part of the sector, namely, the labour. \u201c Informal labour is a labour whose use is not governed either by state regulations or by collective agreements between workers and employers.\u201d<\/strong><\/span><\/li>\nInformal labour has, in different instances, been viewed as labour engaged in urban small scale enterprises, as self employment, as labour engaged in \u201ctraditional activities\u201d, as wholly unskilled labour, and as labour whose use is not subject to any rules or norms.\u00a0<\/strong>But none of this has any sound conceptual or empirical foundation. Informality does not imply a particular mode or location of labour use; informal labour can be in self-employment, in casual wage employment, and in regular wage employment, just as it can be in urban as well as in rural areas. There is little reason to think that informal labour must be confined to \u2018traditional\u2019 and \u2018modern\u2019 activities.<\/span><\/li>\nWe do not need to assume that informal labour is unskilled; only need to recognize that its skills are acquired outside the formal education system<\/strong>. And all the more in the context of the neo-liberal economic policies of hire and fire where\u00a0the organized sector itself is getting informalised through contractualisation, actualization<\/strong>, and outsourcing of labour, there are workers who are equally or even more educated and skilled, work better and even longer in so many of the organized sectors; but for no labour rights, wage, job or social security protection and for very dismal wages. The casual and contract labourers are under the working and living conditions that prevailed in the nineteenth century Europe.<\/span><\/li>\nSince the introduction of the informal sector concept, opinion has been divided as to its socioeconomic impact.<\/strong>\u00a0There are authors who positively point out the accelerated shift in livelihood patterns away from agriculture and villages to cities and towns in the Third World since the mid-twentieth century. But even if the masses of migrants flooding into urban areas were fortunate enough to establish a foothold, the vast majority of them could gain no access to the formal sector. It was still too small to cope with the continuous influx of newcomers.<\/strong><\/span><\/li>\nThe more critical analysis of researchers, who have observed that the formal sector remained inaccessible for reasons other than the inferior quality of the new urbanites\u2019 labour, and their other defects, rejects such an optimistic view.<\/strong>\u00a0The failure of the newcomers\u2019 efforts to find stable, decently paid and dignified work is in this alternative perception due mainly to a development strategy that, in the face of excess supply, seeks to keep the price of labour as low as possible, allows no room for collective action to reduce these people\u2019s vulnerability and refuses to provide this footloose workforce with public representation.\u00a0In short,<\/strong>\u00a0the lack of registration, organization and protection does not have its origin in the free play of social forces, but it\u2019s the deliberate product of economic interests that benefit from the state of informality in which a wide range of activities in all branches of the economy are kept, systematically and on a large scale, through evasion of labour laws and taxation.<\/span><\/li>\nIndeed, the informal sector is not a separate and closed circuit of work and labour.<\/strong>\u00a0There is the interaction, between the formal and informal sectors, and dependence of the latter on the former and even its subordination to it. Now with the neo-liberal economic policies there is the widespread informalization of the formal sector through downsizing, casualisation and contractualisation. In short the capitalist leaches become richer and richer by squeezing the life blood of the working force.<\/span><\/li>\n<\/ol>\nInformal Sector In India:<\/span><\/h3>\nThe Indian Economy is characterized by the existence of a vast majority of informal or unorganized labour employment<\/strong>. The Ministry of Labour, Government of India, has categorized the\u00a0Informal or unorganized labour<\/strong>\u00a0force under four groups in terms of Occupation, nature of employment, specially distressed categories and service categories.<\/span><\/p>\n\nIn terms of Occupation:<\/strong>\u00a0Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category.<\/span><\/li>\nIn terms of Nature of Employment:<\/strong>\u00a0Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this.<\/span><\/li>\nIn terms of Specially distressed categories:\u00a0<\/strong>Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and unloaders come under this category.<\/span><\/li>\nIn terms of Service categories:<\/strong>\u00a0Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors, News paper vendors etc. belong to this category.<\/span><\/li>\n<\/ol>\nIn addition to these four categories, there exists a large section of Informal or unorganized labour force\u00a0<\/strong>such as cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery workers, Power loom workers and Urban poor.<\/span><\/p>\nThough the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
In the mid 1950s, W. Arthur Lewis developed a theoretical model of economic development based on the assumption that there was an unlimited supply of labour in most developing countries and that this vast pool of surplus labour would be absorbed as the modern industrial sector in these countries grew. It was therefore assumed that the traditional sector comprised of petty traders, small producers and a range of casual jobs would eventually be absorbed into the formal economy and disappear.<\/strong><\/span><\/p>\nThis argument became less convincing since the 1970s when case studies on informal sector in various parts of the world began to reveal the highly active existence of men, women and children crowding at the bottom of the urban economy in Third World countries. So many studies have revealed the vast number of workers, in the Third World, striving hard to survive on the fruits of their labours outside the formal sector of the economy.<\/span><\/p>\n\nThe formal \u2013informal dichotomy can be regarded as a new variation on the dualism theories of the past.\u00a0<\/strong>In the colonial era a contrast was constructed between an invasive western capitalist sector and an opposing eastern non-capitalist people\u2019s economy. In post-colonial development theory the concept of dualism was applied to the dichotomy of traditional and modern. According to this view, the rural agricultural order was still predominantly pre-capitalist while the urban-based industrial economy was described as capitalist.\u00a0In the most recent phase of the dualism doctrine capitalism is the label of only the advanced segment of the urban milieu: the formal sector. The modes of production in the lower economic terrain, rather questionably labeled as non-capitalist, are characterized as the informal sector.<\/strong><\/span><\/li>\nIn operationalizing these variations on dualism, the contrasts are more significant than the specific characteristics of each segment.<\/strong>\u00a0For instance, it\u2019s entirely normal to describe the informal sector by summing up the absence of elements found in the formal sector. In the absence of a more analytical definition, the landscape of the informal sector becomes synonymous with the kaleidoscope of unregulated, poorly skilled and low-paid workers. Highlighting this chaotic assortment\u00a0Keith Hart coined\u00a0<\/strong>the term \u2018informal economy\u2019 in 1971.<\/span><\/li>\nThere are different terminologies used so interchangeably to signify the unorganized sector like informal sector, informal economy, and even informal labour which often highlights the most affected part of the sector, namely, the labour. \u201c Informal labour is a labour whose use is not governed either by state regulations or by collective agreements between workers and employers.\u201d<\/strong><\/span><\/li>\nInformal labour has, in different instances, been viewed as labour engaged in urban small scale enterprises, as self employment, as labour engaged in \u201ctraditional activities\u201d, as wholly unskilled labour, and as labour whose use is not subject to any rules or norms.\u00a0<\/strong>But none of this has any sound conceptual or empirical foundation. Informality does not imply a particular mode or location of labour use; informal labour can be in self-employment, in casual wage employment, and in regular wage employment, just as it can be in urban as well as in rural areas. There is little reason to think that informal labour must be confined to \u2018traditional\u2019 and \u2018modern\u2019 activities.<\/span><\/li>\nWe do not need to assume that informal labour is unskilled; only need to recognize that its skills are acquired outside the formal education system<\/strong>. And all the more in the context of the neo-liberal economic policies of hire and fire where\u00a0the organized sector itself is getting informalised through contractualisation, actualization<\/strong>, and outsourcing of labour, there are workers who are equally or even more educated and skilled, work better and even longer in so many of the organized sectors; but for no labour rights, wage, job or social security protection and for very dismal wages. The casual and contract labourers are under the working and living conditions that prevailed in the nineteenth century Europe.<\/span><\/li>\nSince the introduction of the informal sector concept, opinion has been divided as to its socioeconomic impact.<\/strong>\u00a0There are authors who positively point out the accelerated shift in livelihood patterns away from agriculture and villages to cities and towns in the Third World since the mid-twentieth century. But even if the masses of migrants flooding into urban areas were fortunate enough to establish a foothold, the vast majority of them could gain no access to the formal sector. It was still too small to cope with the continuous influx of newcomers.<\/strong><\/span><\/li>\nThe more critical analysis of researchers, who have observed that the formal sector remained inaccessible for reasons other than the inferior quality of the new urbanites\u2019 labour, and their other defects, rejects such an optimistic view.<\/strong>\u00a0The failure of the newcomers\u2019 efforts to find stable, decently paid and dignified work is in this alternative perception due mainly to a development strategy that, in the face of excess supply, seeks to keep the price of labour as low as possible, allows no room for collective action to reduce these people\u2019s vulnerability and refuses to provide this footloose workforce with public representation.\u00a0In short,<\/strong>\u00a0the lack of registration, organization and protection does not have its origin in the free play of social forces, but it\u2019s the deliberate product of economic interests that benefit from the state of informality in which a wide range of activities in all branches of the economy are kept, systematically and on a large scale, through evasion of labour laws and taxation.<\/span><\/li>\nIndeed, the informal sector is not a separate and closed circuit of work and labour.<\/strong>\u00a0There is the interaction, between the formal and informal sectors, and dependence of the latter on the former and even its subordination to it. Now with the neo-liberal economic policies there is the widespread informalization of the formal sector through downsizing, casualisation and contractualisation. In short the capitalist leaches become richer and richer by squeezing the life blood of the working force.<\/span><\/li>\n<\/ol>\nInformal Sector In India:<\/span><\/h3>\nThe Indian Economy is characterized by the existence of a vast majority of informal or unorganized labour employment<\/strong>. The Ministry of Labour, Government of India, has categorized the\u00a0Informal or unorganized labour<\/strong>\u00a0force under four groups in terms of Occupation, nature of employment, specially distressed categories and service categories.<\/span><\/p>\n\nIn terms of Occupation:<\/strong>\u00a0Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category.<\/span><\/li>\nIn terms of Nature of Employment:<\/strong>\u00a0Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this.<\/span><\/li>\nIn terms of Specially distressed categories:\u00a0<\/strong>Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and unloaders come under this category.<\/span><\/li>\nIn terms of Service categories:<\/strong>\u00a0Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors, News paper vendors etc. belong to this category.<\/span><\/li>\n<\/ol>\nIn addition to these four categories, there exists a large section of Informal or unorganized labour force\u00a0<\/strong>such as cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery workers, Power loom workers and Urban poor.<\/span><\/p>\nThough the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
This argument became less convincing since the 1970s when case studies on informal sector in various parts of the world began to reveal the highly active existence of men, women and children crowding at the bottom of the urban economy in Third World countries. So many studies have revealed the vast number of workers, in the Third World, striving hard to survive on the fruits of their labours outside the formal sector of the economy.<\/span><\/p>\n\nThe formal \u2013informal dichotomy can be regarded as a new variation on the dualism theories of the past.\u00a0<\/strong>In the colonial era a contrast was constructed between an invasive western capitalist sector and an opposing eastern non-capitalist people\u2019s economy. In post-colonial development theory the concept of dualism was applied to the dichotomy of traditional and modern. According to this view, the rural agricultural order was still predominantly pre-capitalist while the urban-based industrial economy was described as capitalist.\u00a0In the most recent phase of the dualism doctrine capitalism is the label of only the advanced segment of the urban milieu: the formal sector. The modes of production in the lower economic terrain, rather questionably labeled as non-capitalist, are characterized as the informal sector.<\/strong><\/span><\/li>\nIn operationalizing these variations on dualism, the contrasts are more significant than the specific characteristics of each segment.<\/strong>\u00a0For instance, it\u2019s entirely normal to describe the informal sector by summing up the absence of elements found in the formal sector. In the absence of a more analytical definition, the landscape of the informal sector becomes synonymous with the kaleidoscope of unregulated, poorly skilled and low-paid workers. Highlighting this chaotic assortment\u00a0Keith Hart coined\u00a0<\/strong>the term \u2018informal economy\u2019 in 1971.<\/span><\/li>\nThere are different terminologies used so interchangeably to signify the unorganized sector like informal sector, informal economy, and even informal labour which often highlights the most affected part of the sector, namely, the labour. \u201c Informal labour is a labour whose use is not governed either by state regulations or by collective agreements between workers and employers.\u201d<\/strong><\/span><\/li>\nInformal labour has, in different instances, been viewed as labour engaged in urban small scale enterprises, as self employment, as labour engaged in \u201ctraditional activities\u201d, as wholly unskilled labour, and as labour whose use is not subject to any rules or norms.\u00a0<\/strong>But none of this has any sound conceptual or empirical foundation. Informality does not imply a particular mode or location of labour use; informal labour can be in self-employment, in casual wage employment, and in regular wage employment, just as it can be in urban as well as in rural areas. There is little reason to think that informal labour must be confined to \u2018traditional\u2019 and \u2018modern\u2019 activities.<\/span><\/li>\nWe do not need to assume that informal labour is unskilled; only need to recognize that its skills are acquired outside the formal education system<\/strong>. And all the more in the context of the neo-liberal economic policies of hire and fire where\u00a0the organized sector itself is getting informalised through contractualisation, actualization<\/strong>, and outsourcing of labour, there are workers who are equally or even more educated and skilled, work better and even longer in so many of the organized sectors; but for no labour rights, wage, job or social security protection and for very dismal wages. The casual and contract labourers are under the working and living conditions that prevailed in the nineteenth century Europe.<\/span><\/li>\nSince the introduction of the informal sector concept, opinion has been divided as to its socioeconomic impact.<\/strong>\u00a0There are authors who positively point out the accelerated shift in livelihood patterns away from agriculture and villages to cities and towns in the Third World since the mid-twentieth century. But even if the masses of migrants flooding into urban areas were fortunate enough to establish a foothold, the vast majority of them could gain no access to the formal sector. It was still too small to cope with the continuous influx of newcomers.<\/strong><\/span><\/li>\nThe more critical analysis of researchers, who have observed that the formal sector remained inaccessible for reasons other than the inferior quality of the new urbanites\u2019 labour, and their other defects, rejects such an optimistic view.<\/strong>\u00a0The failure of the newcomers\u2019 efforts to find stable, decently paid and dignified work is in this alternative perception due mainly to a development strategy that, in the face of excess supply, seeks to keep the price of labour as low as possible, allows no room for collective action to reduce these people\u2019s vulnerability and refuses to provide this footloose workforce with public representation.\u00a0In short,<\/strong>\u00a0the lack of registration, organization and protection does not have its origin in the free play of social forces, but it\u2019s the deliberate product of economic interests that benefit from the state of informality in which a wide range of activities in all branches of the economy are kept, systematically and on a large scale, through evasion of labour laws and taxation.<\/span><\/li>\nIndeed, the informal sector is not a separate and closed circuit of work and labour.<\/strong>\u00a0There is the interaction, between the formal and informal sectors, and dependence of the latter on the former and even its subordination to it. Now with the neo-liberal economic policies there is the widespread informalization of the formal sector through downsizing, casualisation and contractualisation. In short the capitalist leaches become richer and richer by squeezing the life blood of the working force.<\/span><\/li>\n<\/ol>\nInformal Sector In India:<\/span><\/h3>\nThe Indian Economy is characterized by the existence of a vast majority of informal or unorganized labour employment<\/strong>. The Ministry of Labour, Government of India, has categorized the\u00a0Informal or unorganized labour<\/strong>\u00a0force under four groups in terms of Occupation, nature of employment, specially distressed categories and service categories.<\/span><\/p>\n\nIn terms of Occupation:<\/strong>\u00a0Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category.<\/span><\/li>\nIn terms of Nature of Employment:<\/strong>\u00a0Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this.<\/span><\/li>\nIn terms of Specially distressed categories:\u00a0<\/strong>Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and unloaders come under this category.<\/span><\/li>\nIn terms of Service categories:<\/strong>\u00a0Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors, News paper vendors etc. belong to this category.<\/span><\/li>\n<\/ol>\nIn addition to these four categories, there exists a large section of Informal or unorganized labour force\u00a0<\/strong>such as cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery workers, Power loom workers and Urban poor.<\/span><\/p>\nThough the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
The Indian Economy is characterized by the existence of a vast majority of informal or unorganized labour employment<\/strong>. The Ministry of Labour, Government of India, has categorized the\u00a0Informal or unorganized labour<\/strong>\u00a0force under four groups in terms of Occupation, nature of employment, specially distressed categories and service categories.<\/span><\/p>\n\nIn terms of Occupation:<\/strong>\u00a0Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category.<\/span><\/li>\nIn terms of Nature of Employment:<\/strong>\u00a0Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this.<\/span><\/li>\nIn terms of Specially distressed categories:\u00a0<\/strong>Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and unloaders come under this category.<\/span><\/li>\nIn terms of Service categories:<\/strong>\u00a0Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors, News paper vendors etc. belong to this category.<\/span><\/li>\n<\/ol>\nIn addition to these four categories, there exists a large section of Informal or unorganized labour force\u00a0<\/strong>such as cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery workers, Power loom workers and Urban poor.<\/span><\/p>\nThough the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
In addition to these four categories, there exists a large section of Informal or unorganized labour force\u00a0<\/strong>such as cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery workers, Power loom workers and Urban poor.<\/span><\/p>\nThough the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
Though the availability of statistical information on intensity and accuracy vary significantly, the extent of unorganized workers is significantly high among agricultural workers, building and other construction workers and among home based workers. According to the Economic Survey agricultural workers constitute the largest segment of workers in the unorganized sector (ie. 52% of the total workers).<\/strong><\/span><\/p>\nAs per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
As per the National Sample Survey Organization (NSSO), 30 million workers in India are constantly on the move (migrant labour) and 25.94 million women workforce has been added in the labour market from the year 2000 onwards.<\/strong>\u00a0All the more every day 13000 Indians turn 60 years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians save for old age. The tragedy is that the existing social security legislations cover only 8% of the total work force of 459 million in India.<\/span><\/p>\nThe latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
The latest report of the NSSO about the casual workers in India between 2004-05 and 2009-10 compared to that of the period between 1999 \u2013 2000 and 2004-05 very clearly shows that there is significant increase in the number of casual workers and decline in the number of regular workers.<\/strong><\/span><\/p>\nThis report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
This report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour force which can be broadly divided in to self employed, regular, and casual workers.\u00a0<\/strong>(casual workers are employees who do not enjoy the same benefits and security as tenured employees. All daily wage employees and some categories of contract employees are casual labourers.)<\/span><\/p>\nAll these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
All these NSSO reports are clear evidences to prove that the labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment (in terms of job security, terms and conditions at work),\u00a0<\/strong>Weakening of worker organizations and collective bargaining institutions, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization process and the resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer analysis suggests that the growing informalisation of labour market has been central to most of these transformations, which inter alia highlights the utility of understanding the growth of unorganized sector in India and its implications.<\/span><\/p>\nMany thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
Many thought that India\u2019s growth could do no wrong, and took the administrative versions and interpretations for granted. Now it comes to a point that none of these can be taken for granted.\u00a0<\/strong>Growth is slow, inflation is structural and structure of employment is not enough to cater to the growing labour force.<\/span><\/p>\nGrowing prominence of Informal (unorganized) sector in India:<\/span><\/h4>\nPredominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
Predominance of informal employment has been one of the central features of the labour market scenario in India. This national level pattern of informal workers occupying around 90% of the workforce is more or less similar in the case of most of the prominent states in the country. Among the unorganized sector workers, a considerable proportion (about 65%) is engaged in agricultural sector, which in turn indicates the prominence of rural segment in the informal economy.<\/span><\/p>\n\nThe growth of formal employment in the country has always been less than that of total employment, indicating a faster growth of employment in the informal sector. Available data suggests that within the formal sector also the proportion of informal \/ unorganized workers are on the increase. For instance, by providing a comparison of the NSSO Employment Data for 55th and 61st Rounds (for 1999-2000 and 2004- 05 respectively) the NCEUS (2007) explains that the country is currently in a state of \u201cinformalisation of the formal sector\u201d, where the entire increase in the employment in the organized sector over this period has been informal in nature.<\/span><\/li>\nIt is widely acknowledged that the\u00a0informal sector in India suffers from a low productivity syndrome, compared to the formal sector<\/strong>. The prominent features of the sector are lower real wages and poor working \/ living conditions.<\/span><\/li>\nFurther,\u00a0the sector is characterized by excessive seasonality of employment (especially in the farm sector), preponderance of casual and contractual employment, atypical production organizations and work relations, absence of social security measures and welfare legislations, negation of social standards and worker rights, denial of minimum wages and so on.<\/strong>\u00a0Poor human capital base (in terms of education, skill and training) as well as lower mobilization status of the work force further add to the vulnerability and weaken the bargaining strength of workers in the informal sector.\u00a0
![\"https:\/\/triumphias.com\/sociology-offline.php\"](\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/01\/WhatsApp-Image-2025-01-06-at-2.36.11-PM-150x150.jpeg\")
<\/a><\/p>\n