What is the present occupational structure in India?

Labour force is defined as those able-bodied workers in the age group of 15 to 59.

The proportion of working population to total population is called work participation rate. In Underdeveloped Countries (UDC’s) the work participation rate of labour force is low.

According to 1981 census, the work participation rate in India was 36.7 percent. In 1991, it increases to 37.7%. According to 2001 census, the work participation rate increased to 39.2 percent. It means out of our total population of 102.7 crore, about 40 crore people constitute the work force.

Similarly in 1991, out of total population of 84.6 crore, about 32 crore people constituted the labour force. We will observe how many of our labour force were employed in agriculture and how many engaged in industrial and service sector. The following table presents the comparative analysis of occupational pattern since 1901.

An in depth analysis of the table indicates that occupational distribution of India’s work force shows the backwardness of the Indian economy. From 1901 to 1970, there was no change in the occupational pattern especially in primary sector agriculture and allied activities. In 1901, 71.7% of the labour force was engaged in primary sector.

In 1971, almost the same proportion (72.2%) of the labour force was in agriculture only in 1981 there has been small decrease in the proportion of work force engaged in agriculture. In 1991, 66.8% of the labour force was employed in agriculture. A recent estimate shows that 56.7 percent of our labour forces are employed in agriculture. This slow decrease in the proportion of work force employed in agriculture in the reference of increasing population growth shows large disguised unemployment in Indian agriculture.

Occupational structure is mainly divided into three categories: viz., primary, secondary and tertiary. The primary occupations include all those essential activities such as agriculture, animal husbandary, forestry, fishery, poultry farming etc. Secondary activities include manufacturing industries composed of both large and small scale and mining. Tertiary activities include all other activities like transport, communication,banking,insurance,trade etc. The occupational structure indicated the distribution as well as absorption of population into these various types.

Now discussing about the present occupational structure in India...In India, the planned economic development anticipated a rapid progress in the expansion of irrigation,power,basic industries and the expansion of tertiary activities in the service sector like expansion of trade,banking,insurance, transportation and communication etc. But after two decades of planning occupational structure in India could not show any remarkable change. Although both secondary and tertiary sector expanded and their absorption capacity also increased. But another important condition that is a significant increase in agricultural productivity could not fulfilled. Again the allied activities of the primary sector and development of village industries could not make much headway in engaging the surplus population from the agricultural sector. All these led to growing pressure of population on agricultural sector and resulted in widespread disguised unemployment in rural as well as urban areas in India. And this scenario made the youth filled with disatifaction and anger.