Question

State the trends in India's industrial employment and explain the measures of generating industrial employment.

Answer 1

Employment elasticity is a measure of the percentage change in employment associated with a 1% change in economic growth. It indicates the ability of an economy to generate employment opportunities for its population as per cent of its growth process. This implies that when employment generation is commensurate with the economic growth, there is positive employment elasticity. Negative employment elasticity indicates a slow employment growth in comparison to economic growth. Negative employment elasticity indicates that economy is not able to generate employment with the progress in economy. Low and negative employment elasticity show “jobless growth”.