In the economy, activities are classified on the basis of employment in following way:

a) Organized sector: This sector refers to the sector where the terms of employment are regular and people have assured work. In this sector all the occupations are registered by the government and followed the rules set up by them. Workers of organized sectors enjoy security of employment.

b) Unorganized sector: This sector refers to the small and scattered units which are largely outside the control of the government. Rules in this sector are set up by the government as in organized sectors but these rules are not followed by any of workers in this sector.