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  • Category: Miscellaneous

    Economic Growth and Employment Generation - A Glaring Mismatch

    According 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.
  • #598726
    An excellent thread from Dr. Shukla. This is a much-debated issue. Without going into the details, i would only state that only manufacturing industry can provide bulk employment. Although Indian economy is growing very fast, that is entirely due to service sector. If different schemes announced by Indian Government (Scheme India, self-reliance in defence production, tourism development, etc.) are implemented successfully, Indian economy would grow much faster along with generation of bulk employment.
    Caution: Explosive. Handle with care.

  • #598739
    Yes. The difference is high. Employment creation is very less. But the present government has already started taking step for employment creation. If many companies under Make In India program starts working, many jobs will be created. Manufacturing Industries has to come more. Defence privatization has just started. Once they all come to a certain stage, lot of improvement is expected. Anyhow we have to wait to see the results.
    Now many are feeling the threat of losing the jobs because of IT slow down and visa restrictions. Now it is the time that government efforts should start giving fruits .

    drrao
    always confident

  • #598742
    Economic growth depends on many factors and during the process employment is also generated but the employement generation is very small when we compare it with our large population of qualified people and equally good number of unskilled labour force.

    Under such a scenario employement generation at village or town level is warranted so that a large number of people can be benefited. Small scale industries are one example of such areas.

    The automation and tendency of using minimal work force in industries and service sector is making the employement position worsen day by day.

    Knowledge is power.

  • #598755
    The author has brought in a real problem India has been facing on unemployment and this post clearly shows vast difference between economic growth and very decimal growth of employment. There are many reasons. Some departments have over staff and no recruitment, Some departments have enough staff whose retiring age and period is more and thus no new generation of job in those departments. And many government departments are computerized and that made the department heads to reduce the staff drastically and hence the demand and supply for government jobs has been widening.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease


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