The correct option is 1 and 3 only.
Explanation
The economy is classified into organised and unorganised sectors based on the nature of employment conditions and adherence to government regulations. The unorganised sector encompasses enterprises that are not registered with the government and where employment terms are not fixed or regular.
Statement-wise Analysis
- Statement 1 is Correct: The unorganised sector is characterized by small and scattered units (such as street vendors, small repair shops, or domestic workers) which operate largely outside the direct control and supervision of the government. They are typically not registered.
- Statement 2 is Incorrect: It is factually incorrect to state that no rules and regulations apply to this sector. Laws such as the Minimum Wages Act or the Unorganised Workers' Social Security Act are technically applicable. However, the defining characteristic of this sector is that these rules are not followed or enforced effectively, rather than being non-existent.
- Statement 3 is Correct: Employment in the unorganised sector is characterized by job insecurity. Jobs are often low-paid, irregular, and lack additional benefits such as paid leave, holidays, or medical facilities. Workers can be asked to leave without any reason.
Key Takeaway
The primary distinction between the organised and unorganised sectors lies in registration and the enforcement of labour laws. While the organised sector follows government rules and provides job security, the unorganised sector evades formal regulation, resulting in poor working conditions.