How many of the following statements about formal sector employment in India are correct?
(A) Data on formal sector employment are collected by the Union Ministry of Labour through employment exchanges.
(B) The private sector is the major employer in the formal sector.
(C) Women form the majority of the formal sector workforce.
(D) Economists say the reforms of the early 1990s led to a fall in the number of formal sector workers.
(E) Workers in the formal sector enjoy social security benefits.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Three
Statements (A), (D) and (E) are correct, so three are correct.
(A) Data on formal sector employment are collected by the Union Ministry of Labour through employment exchanges. — Correct. The Union Ministry of Labour collects it through employment exchanges.
(B) The private sector is the major employer in the formal sector. — Incorrect. The public sector is. In 2012 it employed about 18 of the 30 million formal workers.
(C) Women form the majority of the formal sector workforce. — Incorrect. Men form the majority. Women are only about one-sixth of formal workers.
(D) Economists say the reforms of the early 1990s led to a fall in the number of formal sector workers. — Correct. Economists link the reform process to a decline in formal sector jobs.
(E) Workers in the formal sector enjoy social security benefits. — Correct. They also earn more than informal sector workers.
NCERT (2026-27): “Box 6.1: Formal Sector Employment The information relating to employment in the formal sector is collected by the Union Ministry of Labour through employment exchanges located in different parts of the country. … In 2012, out of about 30 million formal sector workers, about 18 million workers were employed by the public sector. Here also men form the majority, as women constitute only about one-sixth of the formal sector workforce. Economists point out that the reform process initiated in the early 1990s resulted in a decline in the number of workers employed in the formal sector. …” “6.7 Informalisation of Indian Workforce … Those who are working in the formal sector enjoy social security benefits. They earn more than those in the informal sector. …” |