The correct option is 1 only
Explanation
The economy is classified into organized and unorganized sectors based on the nature of employment conditions and the extent of government regulation. The unorganized sector typically consists of small and scattered units which operate largely outside the formal legal framework.
- Statement 1 is Correct: The unorganized sector is characterized by small, scattered units that are largely outside the control of the government. Although there are rules and regulations, they are not effectively enforced. These units are generally not registered with the government.
- Statement 2 is Incorrect: Strict rules and regulations are a feature of the organized sector. In the unorganized sector, rules regarding minimum wages, working hours, and safety standards are frequently ignored or not followed.
- Statement 3 is Incorrect: Employment in the unorganized sector is characterized by job insecurity. Jobs are often low-paid and not regular. There is no provision for overtime, paid leave, holidays, or medical benefits. Workers can be asked to leave without any reason.
Key Takeaway: The unorganized sector is defined by the lack of job security, absence of formal employment benefits (like PF, gratuity), and non-adherence to government regulations, distinguishing it from the registered organized sector.