Economic Growth and Employment Generation - A Glaring MismatchAccording to the recently released report of Labout Bureau, economy of India is growing at 7% per year but the increase in employment had been a dismal 1% last year. This report is based on inputs from eight key sectors of the non-farm economy. It is really an alarming situation. This has happened in spite of various initiatives taken by the Government of India for skill development and employment generation. Unfortunately, some middle class may have another jerk following reported shedding of jobs by many IT and BPO leading companies. It is expected because of the expected slow down in the IT sector as also the proposed visa restrictions.
It is three years now that the present Government is in power. It takes time to initiate some positive measures for employment generation. Let us hope that the stage is set now to implement the schemes floated during this period and reduce the gap between economic growth and employment generation.