Check sibling questions

Growth of Employment and GDP

What are 2 Main Development Indicators of Economy?

  1. GDP
  2. Growth of Employment

Main Developing Indicators of Economy-GDP and Employment Growt Difference.JPG

Relation between GDP Growth Rate and Employment Growth Rates.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


Note :-

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.JPG

Effect of Reform Measures from 1991 onwards on Employment.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 Indian Economy.JPG


NCERT Questions

Question 17

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

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Other Books

Question 1

What are the reasons of Jobless Growth in India?

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Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years and a teacher from the past 17 years. He teaches Science, Economics, Accounting and English at Teachoo