-The Hindu
Study: divergence between growth and jobs has risen
With higher growth rates not having translated into more jobs and increases in productivity failing to spur a commensurate rise in wages, the government ought to formulate a National Employment Policy that takes these trends into account, the State of Working India 2018, a new study released by Azim Premji University’s Centre for Sustainable Employment, recommends.
Study: divergence between growth and jobs has risen
With higher growth rates not having translated into more jobs and increases in productivity failing to spur a commensurate rise in wages, the government ought to formulate a National Employment Policy that takes these trends into account, the State of Working India 2018, a new study released by Azim Premji University’s Centre for Sustainable Employment, recommends.
Confirming the spectre of jobless growth, the study contends that this divergence between growth and jobs had increased over time. “If you look back at the 1970s and 80s, when GDP growth was around 3-4%, employment growth was about 2%,” lead author Amit Basole wrote in the study, released on Tuesday. “Currently, the ratio of GDP growth to employment growth is less than 0.1.” That means that a 10% increase in GDP results in a less than 1% increase in employment.
The study uses government data to show that total employment actually shrank by seven million between 2013 and 2015, and cites private data to posit that an absolute decline has continued in the years since.
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