Jobless Growth: A Comprehensive Analysis of India’s Economic Landscape

5 Dec 2023

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

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 %)

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

 

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
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हिंदी में भी उपलब्ध

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