Employment in informal sector

The informal sector encompasses large parts of agriculture, small and household industry [and] trade professional services, and covers more than 90% of the total labour force in [India]. Due to current trends in modernisation and automation the capacity to absorb the additional workforce in the formal sector is severely restricted. This additional labour force will essentially need to be adjusted in the informal sector through casual, self employed and household activities. Despite efforts made by our government over the past several decades, the informal sector still suffers from a number of problems and exploitation by middle men mainly because of the lack of knowledge regarding market and consumer preference, the low level of technology, poor quality of products and low labour productivity. These factors have resulted in 90% of the labour force in the informal sector contributing only 49% of the gross domestic product. For efficient and effective utilisation of labour, upgrading of their skills is of vital importance. Therefore, to face the challenges of emerging trends, holistic training and education for the informal sector is vital to tone up the unorganised sector and improve its value. The solution lies in providing non-formal and flexible education and training methodologies comprising of functional literacy, vocational skills, and capacity building of the workforce. To enhance productivity, competitiveness and income levels, special efforts are required to encourage the establishment of cooperatives and self-help groups, through peoples' participation and their empowerment.

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The informal sector encompasses large parts of agriculture, small and household industry [and] trade professional services, and covers more than 90% of the total labour force in [India]. Due to current trends in modernisation and automation the capacity to absorb the additional workforce in the formal sector is severely restricted. This additional labour force will essentially need to be adjusted in the informal sector through casual, self employed and household activities. Despite efforts made by our government over the past several decades, the informal sector still suffers from a ...  [+] Show more