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8/11/2019 Changes in Occupational Structure
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Changes in occupational
structure
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Occupational structure: occupational
structure refers to the distribution of
working force into various sectors of
economic activity.
An occupation is defined as an economic
activity which provides means of
livelihood to those engaged in it.
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Relationship between economic
development and occupational
structureThere is a close relationship betweendevelopment of an economy and itsoccupational structure.
As a country develops, there is a shift ofworkers from the primary sector to thesecondary and tertiary sector.
Increased in manufacturing employmentabsorbs a major part of the populationreleased from agriculture.
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sector 1951 1971 1991 2002 2004 2008
primary 72.1 72.1 66.8 60.4 58.4 52.1
Secondary 10.7 11.2 12.7 15.8 18.2
Tertiary 17.2 16.7 20.5 23.8 23.4
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Analysis from the above table is as
follows The rate of structural change in occupational distribution
appears to be very slow. The share of primary sector inthe total work force has declined from 72.1%in 1951 to52.1% in 2008-09
The share of secondary sector is increasing but with avery slow rate.
the share of tertiary sector is rising from just 17.2%in1951 to 23.4% in 2004-05
It is clear that secondary and tertiary sectors have notbeen adding much to employment opportunities due touse of modern capital intensive technology.
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The whole period beginning from 1901,
can be divided into sub-periods. During
the first sub-period. Lasting till as late as
1971, the occupational structure of Indiadid not change at all. The secondary
period covers the period since 1971, over
the last three decades, some definitechanges have taken place.
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The process of modernization of theeconomy is underway. But the pace ofmodernization is so slow that is does not
leave a mark on the occupationalstructure. The number of workers inmodern industries is on an increase . Alsothere is an impressive expansion of job
opportunities in services like education,health, science, railways, communicationsetc.
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By 1981-82, agriculture and allied activities were thedominant sector in India as they accounted for 41.1%ofthe net domestic product (NDP). The service sectorwhich is quite heterogeneous steadily grew over this
period and by 1981-82 emerged as one of the leadingsectors accounting for 35.6% of the NDP
Some development economists argue that the growth ofservices sector in India in recent decades reflects thestructural transformation that normally occurs in a
developing economy as it moves to a somewhat higherlevel of economic development.
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Growth of service sector in this country is a
positive development and it should be further
encouraged as it may transform India into a
agrarian economy into modern developedeconomy. According to economists the future of
the Indian economy rests with services-led
growth. Some other economists believe that
services are hugely important, but cannot bythemselves assure rapid and sustained growth
of the Indian economy.
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In rural areas
71% of workforce in primary sector
11% of workforce is in secondary sector
12% of workforce is in tertiary sector
In urban areas
10% workforce is in primary sector
31% of workforce is in secondary sector
59% of workforce is in tertiary sectors