Question | Write a short note on problems faced by workers of Informal sector |
Chapter | Employment |
Class | Class 12 |
Subject | Economics (Indian Economic Development) |
Category | Indian Economic Development Class 12 Sandeep Garg Solutions |
Question – Write a short note on problems faced by workers of Informal sector
Answer –
All the private sector establishments which employed less than 10 hired workers are called informal or unorganized sectors. For example-small farms, household industries, small enterprises, self-employed etc.
Problems faced by workers in informal sector are:
- Workers who are engaged/ employed in the informal/ unorganized sector are known, informal workers.
- These workers are not entitled to social security benefits such as provident fund, gratuity fund, pension etc.
- These workers cannot form trade unions and do not have strong bargaining power.
- Their rights are not protected by labour law so they are vulnerable to uncertainties of the market.
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