Growth of Employment and Gross Domestic Product, 1951–2012 (%)

• Revealing Economic Paradox: Jobless Growth in India (1950-2010)

  • From 1950 to 2010, India experienced positive GDP growth that was higher than employment growth, although GDP growth exhibited fluctuations. 
  • During this period, employment grew at a rate not exceeding 2 percent. 
  • The above figure highlights a disheartening development in the late 1990s when jobless growth took hold, with employment growth declining to levels similar to those seen in the early stages of planning.
  • The Emergence of “Jobless Growth” in India:
  • This period also witnessed a widening gap between GDP growth and employment, a phenomenon referred to as “jobless growth.” 
  • Essentially, the Indian economy produced more goods and services without generating proportionate employment opportunities.

• Transitioning Horizons: India’s Evolution from Agrarian Roots to Diversified Workforce (1972-2012)

  • India, being primarily agrarian, has a significant rural population dependent on agriculture as their main livelihood. 
  • Developmental strategies have aimed to reduce the proportion of people depending on agriculture, yet the period also witnessed the emergence of jobless growth. 
  • The distribution of the workforce across industrial sectors indicates a substantial shift from agriculture to non-farm work.
  •  In 1972-73, approximately 74 percent of the workforce was engaged in the primary sector, which reduced to about 50 percent in 2011-12.
  • The secondary and service sectors shares increased from 11 to 24 percent and 15 to 27 percent, respectively.

• Casualization of the Workforce:

  •  Regarding employment status, over the last five decades (1972-2018), people have moved from self-employment and regular salaried employment to casual wage work, although self-employment remains a significant employment provider. 
  • This shift is referred to as the “casualization of the workforce” , occurring against the backdrop of a broader economic landscape marked by the challenges of jobless growth.
  • There has been a growing trend of casualization of the workforce. 
• Additionally, there was a moderate rise in the share of regular salaried employees in 2017-18.

Trends in Employment Pattern (Sector-wise and Status-wise), 1972-2018 (in %)