This Study Module with Revision Notes for Class 9 Economics Chapter 2 – People as Resource is prepared strictly according to the NCERT syllabus. It covers all the main concepts – Overview, Economic activities by men and women, Quality of population and Unemployment – in a simple and exam-oriented language suitable for CBSE Class 9 board exam level.

1. Overview – What Do We Mean by “People as Resource”?

In Economics, the word resource means anything that can be used to produce goods and services. Land, water, minerals, forests and physical capital (machines, buildings, tools) are all resources. In the same way, people are also an important resource – when they are healthy, educated and skilled, they help in the development of the country. That is why the chapter uses the phrase “People as Resource”.

When we look at people as a resource, we focus on their abilities, knowledge and skills instead of only counting them as “population”. Population is just a number, but people as resource shows their contribution towards the production of goods and services.

1.1 People as Asset vs People as Liability

A person can be an asset or a liability for the family and the country.

• People as asset: When people are educated, trained and healthy, they are able to work better, use modern technology, earn income, and contribute to national production. They increase the wealth of the country.
• People as liability: When people are illiterate, unskilled, unhealthy and unemployed, they cannot contribute much to production. Instead, they become a burden on their families and on the economy.

1.2 Human Capital – The Turning Point

Human capital refers to the quality of people in terms of their education, skills and health. Just like machines are physical capital, educated and healthy people are human capital.

• Investment in human capital means spending on education, training, skill development and health facilities.
• These investments do not give benefit immediately, but in the long run they raise the productivity and earnings of individuals.
• As productivity increases, national income also increases. This is how human capital formation brings economic growth.

For example, if a poor family spends money on the education of their children, it may be difficult in the short term. But once those children complete their education and get better jobs, their income increases and the family becomes economically secure.

2. Economic Activities by Men and Women

Every day people are engaged in different activities – some earn income, some manage the home, some go to school, and some may be unemployed. Activities which result in production of goods and services and bring income are called economic activities.

2.1 Types of Economic Activities – Primary, Secondary and Tertiary

Economic activities are broadly divided into three sectors:

• Primary sector: Includes activities that use natural resources directly. Examples: agriculture, fishing, mining, animal husbandry, forestry. Most of India’s rural population is involved in this sector.
• Secondary sector: Includes manufacturing and industrial activities where raw materials are converted into finished goods. Examples: making clothes from cotton, sugar from sugarcane, bread from wheat, small-scale factories and workshops.
• Tertiary (service) sector: Includes services that support primary and secondary sectors. Examples: transport, banking, teaching, nursing, shopkeeping, communication, administration, tourism etc.

In the chapter, both men and women are shown working in these sectors, but their roles, wages and recognition are often different.

2.2 Market and Non-Market Activities

Economic activities can also be classified as:

• Market activities (economic activities) – These are activities performed for a pay or profit. The person is paid in cash or kind (for example, wages, salary, profit). Such work is included in the country’s national income.
  Example: A farmer selling crops in the market, a teacher working in a school and receiving salary, a worker employed in a factory.
• Non-market activities (non-economic activities) – These activities involve production of goods and services, but they are mainly for self-consumption or done without payment. Therefore, they are not counted in national income.
  Example: A woman cooking food for her family, a girl helping in household chores, a farmer growing crops only for his family’s own use.

2.3 Women’s Work and Gender Inequality

The chapter highlights that women’s work is often undervalued:

• Women participate in both domestic work and in economic activities (especially in rural areas), but their work is rarely recognised in terms of wages or social status.
• In many rural families, girls are kept out of school to help with household chores or to look after younger siblings. This reduces their opportunities for future employment.
• Women often receive lower wages than men for the same kind of work, especially in informal sectors like agriculture and casual labour.

Thus, while both men and women contribute to the economy, gender inequality limits the full use of human resources, especially the potential of women.

3. Quality of Population

The quality of population depends on people’s education, health and training. A population with high quality is more productive, earns higher income and contributes more to the nation’s development.

3.1 Role of Education

Education is a powerful tool to turn people into a valuable resource:

• It adds to the skills and knowledge of the people so that they can work more efficiently.
• Educated people can adopt new technologies, manage resources better and produce more in the same time.
• Education increases the earning capacity of individuals. A trained and educated worker can earn more than an unskilled worker.
• Education also improves awareness about health, hygiene, civic duties and rights, which further improves the quality of life.

The government invests in education through schools, colleges, universities, scholarships and programmes like Sarva Shiksha Abhiyan and the Right to Education (RTE), to ensure that every child receives at least elementary education.

3.2 Role of Health

Health is equally important in determining the quality of population. A person may be educated and skilled, but if he or she is unhealthy, productivity will be low.

• A healthy person can work regularly, with higher energy and efficiency, and is less likely to fall ill.
• Good health reduces the burden of medical expenses on families and on the government.
• A healthy population also means lower infant mortality, higher life expectancy and better overall development indicators.

The government spends on healthcare by building hospitals, primary health centres, dispensaries and running programmes for vaccination, nutrition and disease control. This is another form of investment in human capital.

3.3 How Education and Health Together Improve Quality

Education and health are interconnected:

• Educated people understand the importance of hygiene, clean drinking water and nutrition.
• Healthy children are able to attend school regularly and learn better.
• A combination of good education and good health raises productivity and makes the population a strong asset.

Therefore, improving the quality of population requires continuous investment in both the education system and the health system of the country.

4. Unemployment

Unemployment is a situation where people who are willing to work and are available for work at the current wage rate do not get work. It is a serious problem for any economy, including India.

4.1 Effects of Unemployment

Unemployment has many negative effects:

• It leads to loss of income for individuals and families, causing poverty and lower standard of living.
• Human resources remain under-utilised – people who could produce goods and services are sitting idle.
• It creates a feeling of frustration, hopelessness and insecurity, especially among youth.
• Unemployment reduces the overall production of the country and slows down economic growth.

4.2 Types of Unemployment (as per NCERT)

The chapter mainly focuses on the following types of unemployment:

a) Disguised Unemployment

This type of unemployment is common in the agricultural sector of rural areas.

• It occurs when more people are employed on a job than actually required.
• Even if some workers are removed, total production does not decrease.
• Thus, these extra workers appear to be employed but are actually unemployed in disguise.

Example: A small field needs only 3 workers, but 6 family members are working on it. The extra 3 members are disguisedly unemployed – they could be engaged in other productive activities.

b) Seasonal Unemployment

Seasonal unemployment is common in agriculture and seasonal industries.

• People get work only during a particular season or time of the year.
• During off-season (for example, between sowing and harvesting), they remain unemployed.
• This is seen in regions where there are few non-farm job opportunities.

c) Open Unemployment

Open unemployment refers to the situation where people are openly without work. They are ready to work and are looking for jobs but are unable to find any.

• It is more visible in urban areas, especially among unskilled labourers.
• It can also be seen when educated youth do not find jobs according to their qualifications.

d) Educated Unemployment

In many cities and towns, a large number of educated youth with school, college or technical degrees are unemployed.

• The number of educated people is higher than the number of suitable jobs available.
• This creates frustration and wastage of human resources.
• It shows a mismatch between the education system and the needs of the labour market.

4.3 Unemployment in Rural and Urban Areas

Rural areas:

• Disguised and seasonal unemployment are most common.
• Most people depend on agriculture, but land is limited.
• There are very few non-farm activities like small industries or services.

Urban areas:

• Open unemployment and educated unemployment are more visible.
• Many educated youth migrate to cities in search of better jobs but do not find suitable employment.
• Some people work in the informal sector with very low and insecure earnings.

4.4 How Can Unemployment Be Reduced?

To reduce unemployment, the country needs to:

• Develop more non-farm activities in rural areas – dairy, poultry, small-scale industries, shops and services.
• Encourage growth of small and cottage industries that can absorb more labour.
• Improve education and skill training so that people are employable in different sectors.
• Promote self-employment through easy loans and support to small entrepreneurs.

When more employment opportunities are created, people become productive and start contributing to national income – thus, they truly become a valuable resource.

5. Summary – Key Revision Points for Exams

• People as Resource: Viewing people in terms of their ability, knowledge and skills. When properly educated and healthy, population becomes an asset, not a liability.
• Human capital: Human beings with education, training and good health. Investment in education and health is called human capital formation.
• Economic activities: Activities that produce goods and services and generate income. Classified into primary, secondary and tertiary sectors.
• Market activities: Done for pay or profit – counted in national income.
  Non-market activities: Done for self-consumption or without payment – not counted in national income.
• Quality of population: Depends on education and health. Higher quality means higher productivity and higher income.
• Unemployment: People willing and able to work at current wages who do not get work. Types include disguised, seasonal, open and educated unemployment.
• Disguised unemployment: More workers employed than required; removal of some workers does not reduce output.
• Seasonal unemployment: People are employed only during certain seasons, especially in agriculture.
• Educated unemployment: Educated people unable to find jobs matching their qualifications.
• Solution to unemployment lies in more investment in human capital, development of non-farm activities and creation of new job opportunities.

These Revision Notes for Class 9 Economics Chapter 2 – People as Resource summarise all important concepts of the NCERT chapter in a clear and simple way. Regular reading and quick revision of these points will help you write accurate, to-the-point answers in your CBSE school and board examinations.