How does informalization lead to casualization ?
Informalisation of workforce refers to the situation wherein there is a continuous decline in the percentage of workforce in the formal sector and a simultaneous rise in the percentage of workforce in the informal sector. Now, when the percentage of workforce in the informal sector increases, it results in a continuous rise in the percentage of casually hired workers in the total workforce overtime with a simultaneous decline in the number of self-employed and regular-salaried individuals.
For example: We know that a majority of the population in India is engaged in the agricultural sector. However, this sector suffers from disguised employment. This means that the number of workers engaged in farming is more than what is actually required on the farms. Thus, the slightest of opportunities encourages these agricultural workers to migrate to urban areas for better employment. However, owing to their low skills and education, they have to work as casual labourers. This increases the percentage of casual workers in the total workforce. Additionally, due to mass unemployment in urban areas, even the skilled and the educated accept to work as casual workers..
For example: We know that a majority of the population in India is engaged in the agricultural sector. However, this sector suffers from disguised employment. This means that the number of workers engaged in farming is more than what is actually required on the farms. Thus, the slightest of opportunities encourages these agricultural workers to migrate to urban areas for better employment. However, owing to their low skills and education, they have to work as casual labourers. This increases the percentage of casual workers in the total workforce. Additionally, due to mass unemployment in urban areas, even the skilled and the educated accept to work as casual workers..