Employment : Growth, Informalisation And Other Issues

Question

Do you think that in the last 50 years, employment generated in the country is commensurate with the growth of GDP in India? How?

Answer

During the last fifty years, gross domestic product of India grew positively and higher than the employment growth. During this period, employmnet grew stabilly at about 2 percent. In the late 1990s employment growth had started declining and reached the level of growth that India had in the early stages of planning. During this period the gap between the growth of GDP and employment has widened.

This means, in the Indian economy without generating employment, we are able to produce more goods and services. This is called jobless growth.

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