Where are Most People Employed
While there has been a marked shift in the relative importance of three sectors to GDP over the past four decades, this trend is not reflected in the employment numbers.
- Employment is highest in the primary industry. Employment in manufacturing increased by a factor of three over this time while industrial output increased by a factor of eight.
- Employment in the service sector increased by only a factor of five despite a 14-fold increase in tertiary sector production. More than half of the labor force is thus engaged in the primary sector, primarily agriculture, which accounts for just 25% of GDP. This results in an oversupply of labor in the primary sector and, consequently, underemployment.
Primary Sector | Secondary Sector | Tertiary Sector |
About more than half of the workers in India are employed in the primary sector, mostly agriculture. | These sectors employ less than the half of people in comparison to the primary sector. | |
The primary sector contributes to only a quarter of the GDP. | Both these sectors contribute to four-fifths of the product. |
CBSE Notes Class 10 Economics Chapter 2 : Sectors of the Indian Economy
An economy is understood better when we study its components or sectors. So, in the CBSE Notes Class 10 Economics Chapter 2- Sectors of the Indian Economy, we will learn important aspects of the 3 types of classification of the economy; primary, secondary, and tertiary, organized/unorganized, and public/private sectors. To understand this chapter better, we will relate the topics to daily life and these topics will help us to familiarise ourselves with some fundamental concepts like employment, Gross Domestic Product, and so forth.