Question

The nature of economic growth in india in described as jobless growth. Do you agree with this view? Give arguments in favour of your answer

Answer 1

Yes, India’s economic growth has been jobless growth in recent times mainly due to the negative / almost zero employment elasticity. The number of workers did not only decrease in farm sector but also manufacturing. The government explained this by quoting that labour intensive technology has been replaced by capital intensive technology and more and more labour force has been accommodated in unorganized sectors or new jobs in the informal sector, with many others went converted into successful small scale entrepreneurs. This is used to explain that the highest employment elasticity has been shown by the Construction and utilities sector (which includes energy, water and waste management).