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5 million jobs lost during high-growth years, says study
Arunav Sinha,TNN | Aug 23, 2015, 02.58 PM IST
Experts argue that the growth of manufacturing will be key for growth in income and employment for multiple reasons.
LUCKNOW: Nearly 5 million jobs were lost between 2004-05 and 2009-10, paradoxically during the time, when India and its economy witnessed the highest and consistent 8% growth, throwing a big question whether growth should be linked to employment generation.
According to a study conducted by Assocham, on one hand, about 1.3 crore youth are entering the labour force every year, while on the other hand, the gap for the employment and growth got only widened during the period of study, which noted that over-emphasis on services and neglect of the manufacturing were mainly responsible for this "jobless growth" phenomenon.
The Indian economy went through a period of "jobless growth" when 5 million jobs were lost between 2004-05 and 2009-10, while the economy continued to grow at an impressive rate of more than 8% annually.
According to the Census India data, the number of people seeking jobs grew annually at 2.23% between 2001 and 2011, but growth in actual employment during the same period was only 1.4%, leaving a huge gap in the form of unemployment.
The study also observed that it may seem, India's "demographic dividend" is also a "demographic cross" as the new generation youth is more demanding and aspirational.
"This large work force needs to be productively engaged to avoid socio-economic conflicts," Assocham secretary general DS Rawat said.
He further stated that the changing demographic patterns suggest that today's youth is better educated, is probably more skilled than the previous generation and also is highly aspirational.
Experts argue that the growth of manufacturing will be the key for growth in income and employment for multiple reasons. For every job created in the manufacturing sector, three additional jobs are created in related activities. The other is that manufacturing in India is scalable and has higher labour absorption in comparison to services.
In a services-driven economy, which contributed 67.3% (at constant price) to the GDP, but employed only 27% of the total working population in 2013-14, enough jobs will not be created to absorb the burgeoning workforce.
In 2013-14, the manufacturing contributed 15% to the GDP and employed about the same percentage of total workforce, demonstrating that the sector has a better labour absorption ability as compared to services.
http://timesofindia.indiatimes.com/...owth-years-says-study/articleshow/48640527.cm
s
Arunav Sinha,TNN | Aug 23, 2015, 02.58 PM IST
Experts argue that the growth of manufacturing will be key for growth in income and employment for multiple reasons.
LUCKNOW: Nearly 5 million jobs were lost between 2004-05 and 2009-10, paradoxically during the time, when India and its economy witnessed the highest and consistent 8% growth, throwing a big question whether growth should be linked to employment generation.
According to a study conducted by Assocham, on one hand, about 1.3 crore youth are entering the labour force every year, while on the other hand, the gap for the employment and growth got only widened during the period of study, which noted that over-emphasis on services and neglect of the manufacturing were mainly responsible for this "jobless growth" phenomenon.
The Indian economy went through a period of "jobless growth" when 5 million jobs were lost between 2004-05 and 2009-10, while the economy continued to grow at an impressive rate of more than 8% annually.
According to the Census India data, the number of people seeking jobs grew annually at 2.23% between 2001 and 2011, but growth in actual employment during the same period was only 1.4%, leaving a huge gap in the form of unemployment.
The study also observed that it may seem, India's "demographic dividend" is also a "demographic cross" as the new generation youth is more demanding and aspirational.
"This large work force needs to be productively engaged to avoid socio-economic conflicts," Assocham secretary general DS Rawat said.
He further stated that the changing demographic patterns suggest that today's youth is better educated, is probably more skilled than the previous generation and also is highly aspirational.
Experts argue that the growth of manufacturing will be the key for growth in income and employment for multiple reasons. For every job created in the manufacturing sector, three additional jobs are created in related activities. The other is that manufacturing in India is scalable and has higher labour absorption in comparison to services.
In a services-driven economy, which contributed 67.3% (at constant price) to the GDP, but employed only 27% of the total working population in 2013-14, enough jobs will not be created to absorb the burgeoning workforce.
In 2013-14, the manufacturing contributed 15% to the GDP and employed about the same percentage of total workforce, demonstrating that the sector has a better labour absorption ability as compared to services.
http://timesofindia.indiatimes.com/...owth-years-says-study/articleshow/48640527.cm
s
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