What is Jobless Growth?
FOR THE PAST MANY YEARS, I KEPT QUESTIONING MYSELF THAT DESPITE HAVING
WORLD’S THIRD-LARGEST ECONOMY IN TERMS OF GDP AND OF COURSE FOR
FOR SOME YEARS INDIA HELD THE RANK OF FASTEST-GROWING ECONOMY.
WHY STILL INDIA IS IN THE WEB OF UNEMPLOYMENT AND POVERTY?
SO, VOYAGE OF THIS WHY DRAGGED ME TO HAVE A LOOK ON RESEARCH
PAPERS, ARTICLES, NEWS, ECONOMIC SURVEY, ETC. AND THEN I ANALYZED THE
TREND OF GDP GROWTH OVER FEW DECADES.
THE SECTORAL COMPOSITION OF INDIA’S GDP GAVE ME A CRYSTAL CLEAR
PICTURE AND ROAD TO MY JOURNEY.
THE COMPOSITION SUGGESTED THAT INDIA HAS SHOWN A SHARP INCREASE IN
SERVICE SECTOR FROM 45.98% IN 2009 TO 49.88% IN 2019 WITH 26.68% AND 32.33%
WORKFORCE RESPECTIVELY.
MUCH TO MY EGREGIOUS AGRICULTURAL SECTOR WHICH CONSTITUTED ONLY
16.74% OF GDP IN 2009 HAS 51.52% OF WORKFORCE IMPLYING 50% OF
WORKFORCE IS JUST CONTRIBUTING MEAGRE TO GDP, WHILE THE
CORRESPONDING FIGURES IN 2019 TURNED TO 15.96% WITH 41.49% IN THE YEAR
2019.
Jobless Growth
MOVING ON TO THE CONTRIBUTION MADE BY THE INDUSTRIAL SECTOR AND THE
ENGAGEMENT OF THE LABOR FORCE IN THIS AREA SEEDED MY MIND WITH ONE OF
THE MAJOR CAUSE OF UNEMPLOYMENT AND POVERTY IN INDIA. I WAS
AWESTRUCK WITH THE DATA THAT THE INDUSTRIAL SECTOR CONTRIBUTED 31.12% IN
2009 WITH 21.81% OF WORKFORCE WHEREAS IN 2019 THERE IS A SLUMP IN
CONTRIBUTION TO 24.88% WITH 26.18% WORKFORCE.
SO, THIS IS THE MAJOR CAUSE OF JOBLESS GROWTH IN INDIA AS WE CAN
CONCLUDE FROM THE DATA THAT GDP HAS INCREASED BUT MAINLY DUE TO
THE CONTRIBUTION MADE BY THE SERVICE SECTOR WHICH REQUIRES LESS
WORKFORCE.
THEREFORE, THE SOLUTION TO THE JOBLESS GROWTH IS THE PROMOTION OF DOMESTIC
INDUSTRIES THAT CAN GENERATE GAINFUL EMPLOYMENT TO MANY OF THE
LABOR WHO ARE ENGAGED IN THE AGRICULTURE SECTOR AND ONLY ADDING TO
DISGUISED UNEMPLOYMENT.
INDEED “MAKE IN INDIA” IS ONE OF THE MAJOR STEPS IN THIS DIRECTION WHICH
WILL NOT ONLY GIVE A SPURT IN GDP GROWTH WHILE AT THE SAME TIME
CONTRIBUTING MUCH TO EMPLOYMENT AS WELL.