question_answer 18)

Is it necessary to generate employment in the formal sector rather than in the informal sector? Why?

Answer:

Yes, it is necessary to generate employment in the formal sector rather than in the informal sector because labour is exploited in the informal sector. In the formal sector, labour laws, enable the workers to protect their rights in various ways. The workers in the formal sector form trade unions bargains with employers for belter wages and other social security measures. They earn more than those in the informal sector. Workers and enterprises in the informal sector do not get regular income; they do not have any protection or regulation from the government Workers are dismissed without any compensation. Thus, in order to provide decent livelihood to its people, government must try to generate employment in the formal sector rather than in the informal sector.