JOBLESS GROWTH

01 Jun JOBLESS GROWTH

(GS PAPER-3, ECONOMY

SOURCE- TE HINDU)

CONTEXT:

A jobless growth is an economic phenomenon in which a macro economy experiences growth while maintaining or decreasing its level of employment. The Indian growth experience of the last decade can be called the jobless growth as the rate of employment growth is less than population growth. 

The following aspects can be highlighted regarding this:

• While the share of employment has largely declined in the Agriculture sector, Service and Manufacturing sector have failed to absorb all the people shifting from the agriculture sector.
• Rapid rise of employment opportunities in the informal or unorganized sector in recent years is another aspect of employment generation in India, which further marginalizes labour.
• While the IT or Service Sector has been the spearhead of economic growth in India after the advent of globalization, they can’t absorb any significant labour. Because the sector requires highly skilled people only.
• During 2005-10, only 1 million net jobs per annum were generated in the organized sector, whereas 60 million people entered into the labour market of India.
• Large scale unemployment among engineering graduates, post graduates like MBA and doctorates are other examples of jobless growth. This is the reason why lakhs of students including engineers, MBA or Phd students applied for only 300 posts of peon in Uttar Pradesh.
  

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