Growth of Employment and GDP


What are 2 Main Development Indicators of Economy?


2 Growth of Employment

Main Developing Indicators of Economy - Teachoo.JPG

Has Growth of Employment consistent with GDP in India?


During Period 1950-2010, Growth in GDP was higher than Employment growth

It means that though economy was growing, it was not generating sufficent jobs for the population


From 1990

Employment Growth Started Declining

It means that reform measures taken in 1990 boosted the economy but failed to generate jobs for workforce



Gap between GDP & growth of Employment is increasing

It means that though we are able to produce more goods and service without generating empoyement

This is called jobless growth


Has Growth of Employment is consistent with GDP in India - Teachoo.JPG

Effect of Reform Measures from 1991 onwards on Employment - Teachoo.JPG

Reason for Jobless Growth in India

1. India is an Agrarian country

Majority of people are still dependent upon agriculture

However, majority of reforms which were undertaken are in industrial and service sector

Hence,it has not benefitted those people who were working in agriculture in villages


2. Use of Modern Technology

New technology have been introduced in manufacturing and service sector

Modern machines require less manual work and less use of labor

Example - Computers work faster and can do work of many humans

This has led to growth of economy but very less job being produced


Reason for Jobless Growth in India - Teachoo.JPG

NCERT Questions


Do you think that during 1950-2010 employment generated in the country is commensurate with the growth of GDP in India?


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Other Books


What are the reasons of Jobless Growth in India?

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  1. Class 12 NCERT
  2. Indian Economic Development

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.