Identify those considered working in the informal sector.

A. A police constable

B. Cycle-rickshaw puller

C. The owner of a bakery employing six workers

D. A government school teacher

E. Worker in a shop which has four hired workers

Choose the correct answer from the options given below:

C, B and E only

The correct answer is option (2) : C, B and E only

We classify workforce into two categories: workers in formal and informal sectors, which are also referred to as organised and unorganised sectors. All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called formal sector establishments and those who work in such establishments are formal sector workers. All other enterprises and workers working in those enterprises form the informal sector. Thus, informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and people working in those enterprises as also the self-employed who do not have any hired workers. It also includes all non-farm casual wage labourers who work for more than one employer such as construction workers and headload workers.

• A police constable (A): Usually considered part of the formal sector due to their employment by government authorities with structured salaries and benefits.
• A government school teacher (D): Also part of the formal sector as they are employed by the government and receive regular salaries.