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Organized and Unorganized Sector

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Organized and Unorganized Sector - Lesson Summary

Economic activities can be classified into organised and unorganised sectors depending on their conditions of employment.
  • The organized sector is characterized by:
  • Fixed working hours
  • Job security
  • Paid leaves and various other benefits

The unorganized sector is characterized by:
  • Irregular work
  • Job security
  • No benefits

However, people work in the unorganized sector as:
  • The organized sector has less job opportunities
  • Companies from the organised sector operate in the unorganised sector to save taxes and avoid giving the employees their due benefits.
  • In the last decade, a lot of people in the organised sector have lost their jobs

People who need protection in the unorganised sector:
  • Landless farm labourers
  • Small and marginal famers
  • Traditional artisans like weavers and potters.

The vulnerable groups in urban areas include:
  • Casual labourers
  • Street vendors
  • Rag pickers
  • People employed in small-scale industries

People from the scheduled castes and tribes need extra protection as they face social discrimination. 

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