Employment & Labour — Indian Economy

Q.1

WBCS prelims 2024

Which of the following is not a problem of the unorganized sector?

A. Low productivity

B. High taxation

C. Low technology

D. Low wages

Explanation

Why Correct: High taxation is not a problem of the unorganized sector because enterprises in this sector largely operate outside the formal tax net, often evading or being exempt from direct taxation. The unorganized sector is characterized by the absence of formal registration, regulation, and tax compliance, so high taxation is not a characteristic problem.
Distractor Analysis: Low productivity is a genuine problem of the unorganized sector because these enterprises typically use outdated methods and lack economies of scale. Low technology is a real issue as unorganized sector units generally rely on traditional, labour-intensive techniques rather than modern machinery. Low wages are a defining problem of the unorganized sector, where workers often receive wages below minimum standards and lack social security benefits.
Takeaway: The unorganized sector employs about 80-90% of India's workforce but contributes only about 50% to the GDP, highlighting the productivity gap. The National Commission for Enterprises in the Unorganised Sector (NCEUS) was established in 2004 to examine the problems of this sector and recommend policy measures.

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Q.2

WBCS prelims 2017

The unorganised sector of India is characterised by

A. more currency transaction

B. more bank transactions

C. more batter transaction

D. more foreign exchange transactions

Explanation

Why Correct: The unorganised sector in India is characterised by a high volume of currency transactions due to lack of formal banking access and cash-based operations.
Distractor Analysis: More bank transactions are typical of the organised sector. There is no standard phrase 'more batter transaction'; it is likely a typo for 'barter transaction', but barter is minimal in modern India. More foreign exchange transactions are associated with the external sector, not domestic unorganised activity.
Takeaway: The unorganised sector covers about 90% of India's workforce and is marked by low productivity, lack of social security, and cash-dominated transactions.

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Q.3

WBCS prelims 2015

Marginal workers are people with

A. Less than 183 days of work in a census year

B. More than 183 days of work in a census year

C. Only 183 days of work in a census year

D. None of the above

Explanation

Why Correct: The Census of India classifies marginal workers as those who worked for less than 183 days (or six months) during the reference year preceding the census enumeration.
Distractor Analysis: Workers who worked for more than 183 days in the reference year are classified as main workers, not marginal. The 183-day threshold marks the boundary between main and marginal workers; working exactly 183 days qualifies as main worker status, not marginal. Since marginal workers work for less than 183 days, 'None of the above' is incorrect because the correct definition is available.
Takeaway: The Census of India also categorizes non-workers as those who did not work at all during the reference year, and the classification of workers into main and marginal is used to measure the workforce's stability and seasonality.

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Q.4

WBCS prelims 2013

India’s Informal Sector engages

A. 93 % of its work force

B. 68 % of its work force

C. 77 % of its work force

D. 16 % of its work force

Explanation

Why Correct: India's informal sector employs about 93% of the workforce, according to NSSO data.
Distractor Analysis: 68% is closer to the share of agriculture in employment. 77% is a common overestimate for non-agricultural informal employment. 16% roughly corresponds to formal sector employment.
Takeaway: The informal sector accounts for over 90% of employment and about 50% of GDP in India.

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Q.5

WBCS prelims 2009

In a factory that pays its employees on a piecework system, the schedule of reinforcement can be said to be

A. Fixed ratio

B. Fixed interval

C. Variable interval

D. Variable ratio

Explanation

Why Correct: Piecework payment delivers reinforcement after a constant number of responses — each completed piece earns a fixed wage — which matches a fixed ratio schedule in operant conditioning.
Distractor Analysis: Fixed interval delivers reinforcement after a set amount of time, such as a weekly salary. Variable interval delivers reinforcement after unpredictable time periods, like random quality checks. Variable ratio delivers reinforcement after an unpredictable number of responses, as in slot machines or sales commissions with varying targets.
Takeaway: Ratio schedules depend on the number of responses, while interval schedules depend on elapsed time; fixed schedules use a constant criterion, and variable schedules use an average or unpredictable criterion.

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Q.6

WBCS prelims 2007

Which of the following is included in the Employees’ State Insurance Act. 1948?

A. Unemployment insurance

B. Medical Benefit

C. Minimum Wages

D. None of the above

Explanation

Why Correct: The Employees' State Insurance Act, 1948 provides medical benefit to insured workers along with sickness, maternity, disablement, and dependent benefits.
Distractor Analysis: Unemployment insurance is governed by separate state-level schemes, not the ESI Act. Minimum Wages is regulated by the Minimum Wages Act, 1948.
Takeaway: ESI Act focuses on health and social security contingencies, excluding unemployment and wage regulation.

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Q.7

WBCS prelims 2001

Which industry provides maximum employment?

A. iron and steel

B. cotton textile

C. jute

D. food processing

Explanation

Why Correct: The cotton textile industry is the largest employer among these, providing direct employment to millions, especially after the handloom sector is included.
Distractor Analysis: Iron and steel industry is capital-intensive and employs fewer workers per unit output. Jute industry is concentrated in West Bengal but employs fewer than cotton textiles. Food processing industry is growing but historically employs less than cotton textiles.
Takeaway: Cotton textile industry remains the largest employer in India's manufacturing sector, with both mill and handloom segments.

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