Organized Sector : (i) It is the one where the terms of employment are regular and people have assured work. (ii) They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, etc. (iii) It is called organized because it has some process and procedures. (iv) Workers in the organized sector enjoy security of employment. They are expected to work only a fix number of hours. If they work more, they have to be paid overtime by the employer. (v) They also get several other benefits from the employers like paid leave, payment during holidays, provident fund, pensions, gratuity, medical benefits, etc. Unorganized Sector: (i) These are small and scattered units which are largely outside the control of the government. (ii) There are rules and regulations but these are not followed. (iii) Jobs here are low-paid and often not regular. (iv) Employment is not secure as people can be asked to leave without any reason. (v) There is no provision for overtime, paid leave, holidays, leave due to sickness, etc. Examples: (i) In a developing country, the government has to take the responsibility for the provision of basic services for example, hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc. (ii) The development of agriculture and industry leads to the development of services such as trade, transport, storage, etc. Greater the development of the primary and secondary sectors, more would be the demand for such services. (iii) As income levels rise, certain sections of people start demanding many more services, such as eating out, tourism, shopping, private hospitals; private schools, professional training, etc. This change was quite sharp in cities, especially in big cities. (iv) Over the past decade or so, certain new services, such as those based on information and communication technology have become important and essential. (v) Government policy of Privatisation has also led to growth of this sector. (vi) A large number of workers are engaged in services,such as small shopkeepers, repair persons, transport persons, etc. (vii) However, the entire sector has not grown. Large numbers of people engaged as construction workers, maid, peons, small shopkeepers, etc., do not find any change in their life.