Question

Service sector in India employs two different kinds of people. Who are these?

Answer 1

Service Sector – Employment of Different Kinds of People

Many different kinds of people are employed in the service sector in India.

On one side of the service sector, there are a huge number of persons engaged in services such as repair persons, transport persons, small shopkeepers etc.

• Due to lack of alternative job opportunities these people perform these services although they barely manage to earn a living from the income generated through these jobs.

At the other end of the Services sector, there are highly educated and highly skilled workers, but the number of available jobs is very limited.

• Hence, the entire service sector is not growing in importance at a desired pace but only a part of this sector is growing.

Service Sector – Employment and Important Facts

• The tertiary sector whose activities generate services instead of goods, is also called the service sector.
• For example, we require doctors, teachers, people who provide accounting and administrative works, and people who provide personal services such as lawyers, cobblers, barbers, and washermen come under this category.
• Some essential services that may not directly help in the production of goods also come under the service sector.
• Taking into consideration the time frame 1970-71 to 2009-10, employment in the service sector increased only by around 5 times, even though the production in the service sector rose by more than 14 times.
• In recent times, certain new services based on information technology such as Software companies, call centres, ATM booths, internet cafes etc have gained a lot of prominence and importance.
• In terms of total production, the services sector has become the most important.
• In developed countries, a general pattern observed is most of the working people are employed in the service sector.

Service Sector – Underemployment

• Less than half the people are employed in the tertiary and secondary sectors although these sectors produce three-fourth of the produce.
• In the urban areas, in the services sector, there are thousands of casual workers who search for daily employment. For example, they are employed as repair persons, plumbers, painters many others do different kinds of odd jobs.
• Many of them don’t find work everyday.
• Other sectors also have this sort of underemployment.
• Similarly, we see other people in the service sector selling something on the street or pushing a cart. They earn very little although they spend the whole day working.
• Due to lack of better job opportunities, they are doing this work.