Study says 8% growth, but 5 m job losses in 2004-10

Study says 8% growth, but 5 m job losses in 2004-10

Study says 8% growth, but 5 m job losses in 2004-10

Putting a question mark on whether there is any link between economic growth and job creation, a latest study has found that as many as five million jobs were lost between 2004-05 and 2009-10, during the time when the Indian economy witnessed a consistent 8 per cent growth “The Indian economy  went through a period of “jobless growth” when five  million jobs were lost between 2004-05 and 2009-10, while the economy was growing at an impressive rate of more than 8 per cent annually,” an Assocham study has said.

According to the Census India data, the number of people seeking jobs grew annually at 2.23 per cent between 2001 and 2011, but growth in actual employment during the same period was only 1.4 per cent, leaving a huge gap in the form of unemployment.

Experts argue that the growth of manufacturing will be the key for growth in income and employment for multiple reasons. For every job created in the manufacturing sector, three additional jobs are created in related activities. The other is that manufacturing in India is scalable and has higher labour absorption in comparison with services.

In a services-driven economy, which contributed 67.3 per cent to the GDP, but employed only 27 per cent of the total working population in 2013-14, enough jobs will not be created to absorb the burgeoning workforce.