Question:

The distribution of workforce in different sectors indicates that over the last five decades (1972-2018), people have moved from self-employment and regular salaried employment to casual wage work. What is this process called?

Updated On: May 13, 2025
  • Informalisation of workforce
  • Regularisation of workforce
  • Formalisation of workforce
  • Casualisation of workforce
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The Correct Option is D

Approach Solution - 1

The redistribution of the workforce from self-employment and regular salaried jobs to casual wage work is a phenomenon observed over the past several decades. This shift is identified by a significant increase in casual or temporary employment which lacks job security and benefits associated with regular employment. This process is known as the Casualisation of workforce.

Explanation:

  • The casualisation of the workforce involves a shift towards less permanent forms of employment where workers receive wages based on the work they perform without long-term commitments or assurances from employers.
  • A casual workforce typically experiences fluctuations in income and lacks benefits like health insurance, retirement plans, and paid leave.
  • Over time, economic changes, technological advancements, and globalization have been significant factors driving this shift, as they pressure companies to minimize costs and maintain flexible labor arrangements.
  • This trend indicates a move away from traditional employment models, influencing the socio-economic landscape.

Given the options provided:

  • Informalisation of workforce: Refers to jobs in informal sectors without formal contracts.
  • Regularisation of workforce: The opposite, formalizing irregular jobs into steady employment.
  • Formalisation of workforce: Transforming informal jobs into formal, structured employment roles.
  • Casualisation of workforce: Fits the scenario described, indicating an increase in temporary, flexible jobs with reduced job security.

Thus, based on the description provided, the correct answer is: Casualisation of workforce

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Approach Solution -2

The trend of transitioning from regular salaried jobs to casual or temporary work is referred to as the casualisation of the workforce. This shift represents a significant change in the labor market, where an increasing number of workers are employed on a short-term or contract basis rather than having permanent, full-time positions.

The rise of gig economy jobs, outsourcing, and flexible work arrangements has contributed to this trend. Many workers in industries such as retail, hospitality, and IT are now finding themselves in casual employment situations, which often lack job security, benefits, and long-term stability.

While casualisation offers certain advantages like flexibility and autonomy for workers, it also raises concerns about job insecurity, lack of worker benefits (such as healthcare, pensions, etc.), and the erosion of workers' rights. This shift can lead to an increase in income inequality and a more fragmented labor market.

Policymakers and labor advocates are concerned about these issues and are working to address the challenges posed by casualisation through legislation and reforms that aim to protect workers' rights while adapting to the changing nature of work.
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