Ramesh works in the organised sector because he has fixed working hours, regular salary, job security and benefits like PF, leave, and insurance. Suresh is in the unorganised sector as he lacks stable income, formal contracts, social security and protected working conditions.
A research student interviewed two workers, Ramesh (a bank employee) and Suresh (a street vendor), about their jobs. Based on their responses, the student concluded Ramesh works in the organised sector while Suresh is in the unorganised sector. Analyse the key differences between these sector that helped the student reach this conclusion.
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The student concluded correctly that Ramesh works in the organised sector and Suresh in the unorganised sector because there are several major differences between the two sectors in terms of job security, working conditions, benefits and regulation.
The organised sector includes all enterprises that are registered with the government and follow its rules and regulations, such as those related to wages, working hours and employee welfare. For example, Ramesh, a bank employee, works in a formal setup where his job is permanent and secure. He receives a fixed monthly salary, along with benefits like paid leave, provident fund (PF), pension, medical facilities and insurance. His working hours are fixed and his rights as an employee are protected by labour laws. He can also approach the court or labour department in case of unfair treatment.
On the other hand, the unorganised sector consists of small and informal jobs or enterprises which are not registered with the government. Workers here often face low and irregular wages, no job security and no fixed working hours. For instance, Suresh, being a street vendor, earns based on how much he sells each day. He does not receive paid leave, provident fund, or medical benefits and his income is uncertain, depending on weather, customers, or police interference. There are no written contracts or laws to protect him from exploitation or sudden loss of income.
In conclusion, the key differences that helped the student reach this conclusion were:
These factors clearly separate the organised and unorganised sectors in India’s economy.