# Class 12 Economics Chapter 6 Notes | SwaVid NCERT Class 12 Economics notes: key ideas, definitions, common mistakes and 3 quick checks with worked answers, written by SwaVid from the NCERT textbook. Canonical: https://www.swavid.com/cbse/class-12/economics/chapter/employment-growth-informalisation-and-other-issues Source: https://www.swavid.com/cbse/class-12/economics/chapter/employment-growth-informalisation-and-other-issues # Employment: Growth, Informalisation and Other Issues ## Definitions, formats and formulas ## Key ideas ## Common mistakes ## Quick checks ## Keep going ## Questions parents ask ## Class 12 Economics on SwaVid ### Workers and employment ### Worker-population ratio ### Self-employed and hired workers ### Jobless growth and casualisation ### Informalisation of the workforce ### Types of unemployment ### Government employment generation policies ### Next chapter ### Related chapter ### Related chapter ### Related chapter ### All chapters SwaVid › CBSE › Class 12 › Economics › Employment: Growth, Informalisation and Other Issues Notes written by SwaVid from the NCERT textbook. Class 12 Economics, Chapter 6. Key ideas, definitions and common mistakes. CBSE does not print marks for a single chapter. Short answer. This chapter examines the structure of India's workforce, trends in employment growth, and the patterns of informalisation. It explains how economic growth without proportionate job creation has led to jobless growth and persistent casualisation of labour. Source: NCERT Indian Economic Development (Reprint 2026-27) , Chapter 6, Employment: Growth, Informalisation and Other Issues A worker is an individual engaged in an economic activity that contributes to the Gross National Product. Workers include self-employed individuals, regular salaried employees, and casual wage labourers, as well as those temporarily absent from work due to illness or injury. The worker-population ratio measures the proportion of a country's population actively contributing to the production of goods and services. A higher ratio indicates a higher proportion of people involved in economic activities, with rural areas generally showing higher participation rates than urban areas. Workers are categorized into self-employed individuals who own and operate an enterprise, and hired workers who sell their labour. Hired workers are divided into regular salaried employees who get steady wages and social security, and casual wage labourers who are hired on daily contracts without job security. Jobless growth refers to an economic situation where GDP expands without a corresponding increase in employment opportunities. Casualisation of the workforce describes the steady shift of workers from regular or self-employed categories into casual daily-wage labour over time. Informalisation is the process whereby the proportion of workers in the informal sector increases relative to the formal sector. Formal sector enterprises hire 10 or more hired workers and provide social security benefits, whereas informal sector units operate with fewer workers and offer no statutory social security. India faces various forms of unemployment, including open unemployment, seasonal unemployment mainly found in agriculture, and disguised unemployment where more workers are engaged than actually needed. Disguised unemployment occurs when the marginal productivity of an extra worker is zero. The government generates employment directly through administration and public sector units, and indirectly by purchasing goods and services from private enterprises. It also runs targeted poverty alleviation and wage-employment programmes like the Mahatma Gandhi National Rural Employment Guarantee Act. Try each question first. Then tap it to see the answer. Worker-population ratio = (Total number of workers / Total population) × 100 Worker-population ratio = (18,000 / 50,000) × 100 Worker-population ratio = 0.36 × 100 = 36% 36% Total hired workers = 8 + 3 = 11 An establishment with 10 or more hired workers belongs to the formal sector Since 11 is greater than 10, the firm moves into the formal sector Formal sector Change in total output = 100 quintals - 100 quintals = 0 quintals Marginal product = Change in output / Change in workers = 0 / 2 = 0 Excess labour with zero marginal product indicates disguised unemployment Disguised unemployment with marginal product of 0 quintals Environment and Sustainable Development . Rural Development . Human Capital Formation in India . Liberalisation, Privatisation and Globalisation: An Appraisal . The 13 chapters of Class 12 Economics . CBSE does not give marks to one chapter. It prints marks for units or parts, and the chapter list page shows them all. No. They are written by SwaVid from the NCERT textbook. The CBSE curriculum is the reference for what is assessed. Environment and Sustainable Development. SwaVid is an AI tutor for Indian students in Classes 6 to 12. It finds the earlier ideas a child missed, then teaches today’s chapter. Start free to see how it works. - Ch 6 NCERT book - 80 marks, theory paper - 3 quick checks - Treating domestic unpaid household work as economic activity . Exclude unpaid domestic work inside one's own household from economic activity, as it does not contribute directly to measured Gross National Product. - Confusing casualisation with informalisation . Casualisation refers to the rise in casual wage labourers relative to total workers, whereas informalisation refers to the expansion of employment in the informal sector without social security. - Classifying a unit with exactly 10 hired workers as informal . Any enterprise employing 10 or more hired workers belongs to the formal sector. A unit must employ fewer than 10 hired workers to be in the informal sector. - Assuming disguisedly unemployed workers are visibly idle . Recognise that disguisedly unemployed people appear actively engaged in work, but their withdrawal causes zero reduction in total output. ## Key Links - [CBSE](https://www.swavid.com/cbse) - [Class 12](https://www.swavid.com/cbse/class-12) - [Economics](https://www.swavid.com/cbse/class-12/economics/chapters) - [Start free →](https://www.swavid.com/signup) - [All 13 chapters](https://www.swavid.com/cbse/class-12/economics/chapters) - [NCERT Indian Economic Development (Reprint 2026-27)](https://ncert.nic.in/textbook.php) - [Open notes](https://www.swavid.com/cbse/class-12/economics/chapter/environment-and-sustainable-development) - [Open notes](https://www.swavid.com/cbse/class-12/economics/chapter/rural-development) - [Open notes](https://www.swavid.com/cbse/class-12/economics/chapter/human-capital-formation-in-india) - [Open notes](https://www.swavid.com/cbse/class-12/economics/chapter/liberalisation-privatisation-and-globalisation-an-appraisal) - [Class 12 Economics](https://www.swavid.com/cbse/class-12/economics/chapters) - [Start free →](https://www.swavid.com/signup)