ldquo A situation when percentage of total work force in formal sector tends to decline and percent...........

“A situation when percentage of total work force in formal sector tends to decline and percentage of total work force in Informal sector tends to rise is called informalisation”.What can be the possible reasons for such situation. Choose the correct alternative.

Restrictive labour laws.

Illiteracy and poor skills level

Increase in imports

All of the above

Explanation:

- Restrictive labour laws: Strict regulations can discourage employers from hiring in the formal sector, thereby pushing workers into informal employment.

- Illiteracy and poor skills level: Individuals lacking necessary education and skills may find it difficult to secure formal jobs, leading them to accept informal work.

- Increase in imports: A surge in imports can affect local industries, causing formal jobs to shrink as companies downsize or close and workers then move to informal jobs.

Correct Answer: Option: 4 - All of the above corresponds to various factors that lead to the rise of informal employment and the decline in formal sector employment.