Which of the following option explains the situation where percentage of work force in the formal sector declines and that in the informal sector rises?

Informalisation

The correct answer is option 3: Informalisation

Explanation:

Informalisation refers to the process where the percentage of the workforce in the formal sector declines while the percentage in the informal sector rises. This typically happens as jobs in the formal sector decrease or as more workers find employment in informal, unregulated jobs without formal contracts or benefits.

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.