Growth of Employment and GDP
What are 2 Main Development Indicators of Economy?
- GDP
- Growth of Employment
Has Growth of Employment consistent with GDP in India?
No
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
Reason for Jobless Growth in India
-
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
-
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
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?
View answer
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
Other Books
Question 1
What are the reasons of Jobless Growth in India?
View answer
Reasons for jobless growth are:
-
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
-
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