Question 22 of 36advanced🔍 AnalyzeEssay5 marks

For each of the sectors that we came across in this chapter why should one focus on employment and GVA? Could there be other issues which should be examined? Discuss.

Correct Answer

We classify economic activities into primary, secondary, and tertiary sectors to understand their role in the economy. Focusing on employment and GVA is essential because it highlights the contribution of each sector. The data shows that while the tertiary sector contributes the most to GDP, employment remains largely in the primary sector. This disparity indicates that the sector producing the most goods and services is not generating the most jobs, leading to issues like underemployment.

There are other critical issues that must be examined. We should analyze whether workers are in the organised or unorganised sectors. Since most people work in the unorganised sector, the key issue of protecting workers must be discussed. Workers in this sector need protection regarding wages, safety, and health.

Furthermore, we must examine the distinction between public and private activities. It is important to see if public activities are focusing on necessary areas for development. Finally, the problems caused by changes in sector roles, such as unemployment and the declining importance of agriculture, need to be studied. This helps in understanding what the government can do to solve such problems and increase employment opportunities.

Exercise: EXERCISES | Q: 7 | (Page 19)
For More Understanding

Explanation

The answer is derived from the 'Summing Up' section and the 'Another important issue' section of the provided context. The textbook explicitly states the mismatch between GVA contribution (tertiary sector) and employment share (primary sector) as a key reason for focusing on these metrics. For the second part of the question regarding other issues, the context lists the organised vs unorganised classification, the need for protection regarding wages/safety/health (from Q22 context), and the issues of unemployment and declining importance of agriculture.