Benefits Of Unorganised Sector

Introduction:

Informal sector accounts for about 94 per cent of the total workforce in the country. In Indian context, unorganized sector refers to the vast numbers of women and men engaged in different forms of employment. These forms include home-based work (for example: rolling papads and beedis, self-employment (for example: selling vegetables), employment in household enterprises, small units, on land as agricultural workers, labour on construction sites, domestic work, and a myriad other forms of casual or temporary employment. Employees of enterprises belonging to the unorganized sector have lower job security and poorer chances of growth as well as no leaves and paid holidays. They have lower protection against employers indulging

The National Commission on Enterprises in the Unorganised Sector (NCEUS, 2007) defines unorganised sector as follows: “The unorganised sector consists of all unincorporated private enterprises owned by individuals or households engaged in the sale and production of goods and services operated on a proprietary or partnership basis and with less than ten total workers” . The NCEUS defines unorganised workers as “those working in the unorganised enterprises or households, excluding regular workers with social security benefits, and the workers in the formal sector without any employment/social security benefits provided by the employers

In urban areas while such considerations are much less, it cannot be said that it is altogether absent as the bulk of the unorganized workers in urban areas are basically migrant workers from rural areas.

 Workers in the unorganized sector are usually subject to indebtedness and bondage as their meager income cannot meet with their livelihood needs.

 The unorganized workers are subject to exploitation significantly by the rest of the society. They receive poor working conditions especially wages much below that in the formal sector, even for closely comparable jobs, i.e., where labour productivity are no different. The work status is of inferior quality of work and inferior terms of employment, both remuneration and employment.

 Primitive production technologies and feudal production relations are rampant in the unorganized sector, and they do not permit or encourage the workmen to imbibe and assimilate higher technologies and better production relations. Large scale ignorance and illiteracy and limited exposure to the outside world are also responsible for such poor