Indian Economic Development: Employment – Growth, Informalisation and Other Issues · Class 12 · CBSE · Commerce Economics
A manufacturing company replaces many regular employees with contract workers who perform similar tasks but do not receive job security, provident-fu…
Practice question from Indian Economic Development: Employment – Growth, Informalisation and Other Issues (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
hard · MCQ · Q-D08FC8
A manufacturing company replaces many regular employees with contract workers who perform similar tasks but do not receive job security, provident-fund benefits or paid leave. This change is an example of:
- A.Formalisation of employment
- B.Informalisation of the workforceCorrect answer
- C.Increase in self-employment
- D.Reduction in labour force participation
Solution
Informalisation occurs when an increasing proportion of workers lack the benefits and protection associated with formal employment. Contractual employment without social security or job security reflects this process.
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