We know that there are 3 types of workforce

  1. Self Employed
  2. Regular Salaried
  3. Casual Wage Labourers

Majority of workers in India are Self Employed

This is because majority of them are farmers who are working in their small farms or are small businessman

Share of Self employed is consistently declining from Independence (61%) till date (52%)

It is because people are moving away from agriculture into other sectors

Reason for High Share of Self Employed in India.JPG

Casualisation of Workforce

It means

Share of Casual Wage labourers is increasing

People are moving from Self employed and Regular Salaried Employment to Casual Wage Work

Main reason is People moving away from agriculture and small businesses and coming to cities to work as labour

Casualisation of Workforce-Meaing Example.JPG

Casualisation of Workforce-Important Points-Meaning Reasons Effect.JPG

Advantages of Casualisation

It increases income of people

There is more flexibility


Disadvantages of Casualisation

It makes people vulnerable to income fluctuations

(No income earned in case of lockdown)

Positive and Negative Effects of Casualization of Workforce.JPG

Other Books

Question 1

What do you mean by casualisation of workforce?

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Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years and a teacher from the past 18 years. He teaches Science, Economics, Accounting and English at Teachoo