Question

There has been a big change in the three sectors of economic activities, but a similar shift has not taken place in the share of employment. Explain the statements on the basis of facts.

Answer 1

Primary sector employs around 50% of the population, but it contributes the most to disguised unemployment. Even when people appear to be employed, they are actually unemployed as their removal from the production process does not affect the said process. These people are engaged in activities but not to their full potential. This situation is called disguised unemployment or hidden unemployment.

Secondary and tertiary sectors have not created enough jobs to accommodate the people who have migrated from the agriculture sector. The employment in the manufacturing sector went up by only 3 times and in the services sector by 5 times.