The correct option is 2 only.
Explanation
The economy is broadly classified into organised and unorganised sectors based on employment conditions and government registration. The unorganised (informal) sector is characterized by small and scattered units which are largely outside the control of the government, lacking job security and formal benefits.
Statement-wise Analysis
- Statement 1 is Incorrect. Workers in small-scale industries are not "always" covered under the organised sector. In fact, a significant portion of small-scale industries falls under the unorganised sector because they often operate without formal registration or employ fewer than the threshold number of workers required for formal regulation (e.g., under the Factories Act).
- Statement 2 is Correct. In urban areas, the unorganised sector predominantly comprises workers in small-scale industry, casual workers in construction, trade, and transport, as well as those who work as street vendors, head load workers, garment makers, and rag pickers. These workers typically lack employment security and social security benefits.
- Statement 3 is Incorrect. Street vendors are a classic example of the unorganised or informal sector. They operate outside the formal regulatory framework, do not have formal employment contracts, and are not considered part of the formal service sector.
Key Takeaway
The urban unorganised sector primarily consists of casual labourers in construction, trade, and transport, as well as self-employed individuals like street vendors and rag pickers, who operate without formal registration or social security protection.