Consider the following statements about the informal sector:
(A) Workers in this sector can be dismissed without any compensation.
(B) Workers in this sector get social security, though not a regular income.
(C) Workers and enterprises in this sector get no protection or regulation from the government.
(D) Enterprises in this sector use modern technology, though they keep no accounts.
(E) Many workers of this sector live in slums and are squatters.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (C) and (E) only
(A) Workers in this sector can be dismissed without any compensation. — Correct. They have no protection from the government.
(B) Workers in this sector get social security, though not a regular income. — Incorrect. Half of it is wrong: they get no regular income and no social security. Social security goes with formal jobs.
(C) Workers and enterprises in this sector get no protection or regulation from the government. — Correct. This is why they can be dismissed freely.
(D) Enterprises in this sector use modern technology, though they keep no accounts. — Incorrect. They keep no accounts, but their technology is outdated, not modern.
(E) Many workers of this sector live in slums and are squatters. — Correct. Low and uncertain income keeps them in slums.
NCERT (2026-27): “6.7 Informalisation of Indian Workforce … Workers and enterprises in the informal sector do not get regular income; they do not have any protection or regulation from the government. Workers are dismissed without any compensation. Technology used in the informal sector enterprises is outdated; they also do not maintain any accounts. Workers of this sector live in slums and are squatters. …” “… Those who are working in the formal sector enjoy social security benefits. They earn more than those in the informal sector. …” |