DMPQ- What do you understand by the term unorganised sector? What are the problems associated with it?

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Unorganised sector: unorganised sector  is defined as a  production or service oriented enterprise owned by individuals or self employed workers (one who is not working for an employer and is engaged in an unorgnised sector job earning an income below a threshold or owning land below a notified limit) and if workers are employed, then the total number of workers cannot exceed 10.

Problems faced by unorganised sector:

  1. Workers in the unorganized sector do not have steady employment, secure or sustainable incomes and are not covered by social security protection.
  2. little awareness of workplace hazards, extended work hours, exploitation, no concept of occupational safety/services, lack of implementation of Health & Safety legislation, no concept of Trade/Labour Union, No guaranteed minimum wages, Vulnerable to diseases, etc.
  3. Desperately poor low wages, fraudulent contractors, disease-causing environments, Deplorable social conditions, sexual harassment, and women are underpaid compared to their male counterparts.
  4. The problem of child labour: Hazardous working conditions, Child trafficking, child exploitation.
  5. The alarming expansion of the informal sector, in recent times, has adversely affected employment and income security for the larger majority of the workforce, along with a marked reduction in the scale of social welfare/security programme.

Adjusted for inflation unorganized sector workers incomes have often fallen over the last two and half decades, driving them into deeper poverty

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