Correct Option
The correct option is 2 only.
Explanation
Globalization has significantly altered the structure of employment in India. While it has generated new opportunities, it has also intensified competition, compelling industries to adopt cost-cutting measures. This has led to structural changes in how labor is employed, particularly affecting job security and the nature of contracts in both the organized and unorganized sectors.
Statement-wise Analysis
- Statement 1 is Incorrect: Globalization has generally led to decreased job security in the organized sector. To remain competitive in the international market, firms require the ability to adjust their workforce according to fluctuating demand. Consequently, there has been a shift from permanent, secure employment to contract-based or casual employment, reducing overall job security.
- Statement 2 is Correct: Employers increasingly prefer employing workers on a 'flexible' basis. This flexibility allows companies to hire workers when demand is high and lay them off when demand falls, thereby reducing fixed labor costs and avoiding long-term commitments such as provident funds and gratuity. This "flexibilization" of labor is a distinct feature of the post-globalization economy.
- Statement 3 is Incorrect: While the organized sector is theoretically defined by its adherence to labor laws, the pressure of globalization has led to the "informalization of the formal sector." Many organized sector enterprises now outsource work to the unorganized sector or hire contract laborers who do not enjoy the protection of labor laws. Therefore, strict adherence to labor laws has weakened rather than being maintained.
Key Takeaway
Key Takeaway: Globalization has induced labor flexibility, leading to the erosion of job security and the informalization of the organized sector, where formal firms increasingly rely on contract or casual labor to cut costs.