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Growth and Changing Structure of Employment

Two indicators of economic development are the GDP and the growth in employment. The last fifty odd years of planned development has targeted expansion of the employment opportunities and hence the increase of the GDP. During the years 1960-2000, the rate of growth of GDP has been more than that of employment, but it has fluctuated. The employment growth has been steady at the rate of 2% per annum. During the late 1990a however, the growth of the employment rate started decreasing and almost reached the level which was at the stat of planning. Over the years there has been a wide gap in the growth rate of GDP and employment pointing out the fact that the economy has grown without generating employment. This kind of growth is termed as jobless growth.

We will now look at two indicators which will help us study this jobless growth that we have had. The employment of people in various sectors has to be considered. Our nation is an agrarian nation and the development strategies have been aimed at reducing the dependence of people on agriculture. The distribution of workforce in industrial sectors shows a significant decline in the workforce related to farm work. In 1972-73 more than 75% of the population was involved in the primary sector and by 1999-200 this had reduced to 60%. The increase of workforce in the services and secondary sectors proves that there is a promising future for the Indian workforce.

Over the last few decades people have moved from self employment and regular salaries to casual wage. Self employment still remains the major employment provider. The moving of workers into casual labour is called the casualization of workforce. This causes the workforce to be vulnerable.

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