NEAR JOBLESS GROWTH IN INDIA : AN ANOMALY OR AN OUTCOME OF ECONOMIC REFORMS

      We know that unemployment is one of the major problem of India and this problem is continuously increasing . In the time of Corona Virus (Covid-19) , this problem has magnified in a large proportion. But even before this , there was huge unemployment in India. And this happening despite India being one of the fastest growing economy in the world. So today we are going to discuss on the Topic NEAR JOBLESS GROWTH IN INDIA : An ANOMALY OR AN OUTCOME OF ECONOMICS REFORM . 

       So guys , this is a very interesting topic and also very relevant topic . Let us know do the brainstorming of the topic because brainstorming helps in generating lots of ideas and when we will expand those ideas our answer will be better. So the first question is WHAT IS THE MEANING OF JOBLESS GROWTH ?  IS JOBLESS GROWT IS DUE TO ANOMALY ? so we know the jobs have not being created is it because of some sought of anomaly not collecting the data.  IS JOBLESS GROWTH IS AN OUTCOME OF ECONOMIC REFORM ? THERE DATA SHOWING JOBLESS GROWTH ? WHAT ARE THE REASONS FOR JOBLESS GROWTH ? AND HOW WE CAN INCREASE JOB OPPORTUNITIES IN INDIA ? 

       So these are some relevant questions write answers when we write we will get the answers of this particular question . Now first of all we will define the meaning of the important term i.e jobless growth an anomaly .

JOBLESS GROWTH : Jobless growth is a situation where in the overall economy shows an expansion but the number of jobs created is very less or nil in comparison to the growth rate of the overall economy.

       So we know that India is one of the fastest growing economy . We have been growing 7-8% but the jobs are not Increasing so that the meaning of jobless growth i.e When the economy is increasing but the jobs are not rising in the same proportion. Or they are not rising at all. Now the second definition of ANOMALY . 

ANOMALY : It basically mean a deviation from the common rule , type , arrangement or firm ; an odd , peculiar , or strange condition , situation , quality etc an incongruity or Inconsistency.

       Now you don't have to remember this definition so accurately that's not important for us. But we have understand what is the meaning of ANOMALY hence for Example : Economy growth means job growth but in India it is not happening so if it is relating to that , that is basically for anomaly. 

      First of all we take a simple example we all know , India is the fastest growing major economy of the world with over 7 % growth rate of GDP when we even surplus China in recent time.

  1.  There are almost all 13 million people entering into job market everyday.

 2. And over 5 million men lost job between 2016-18 according to Azim Premi Universities Centre for sustainable Employment report. So on one side you are seeing that every year 13 million are entering to the job market and on the other side the net jobs are not growing . As a matter of fact 5 million men have lost their job during 2016-10 itself.

4.  The rate of unemployment is doubled in last one decades from 3% - 6% .

5. And today the unemployment in India is 45 years high and this is the rate before the Covid -19 . Now of course the unemployment rate is over 20% . And I hope that this is only a temporary phenomena and after this distress time is over and we get back to the normal times.

       Now we talk about the TRENDS OF UNEMPLOYMENT IN INDIA :

      As per National Sample Survey Office Data , the number of persons in the work force increased from 398 million in the financial year 2000 to 458 million in financial year 2005 , an increase of nearly 60 million or 15 % in five years. The increase between financial year 2005- financial year 2012 has been only 473 million i.e an increased of 15 million or 3.3 % over a span of seven years. And in this way we can establish that job creation are actually declining.

   Then in the period between 2005 -2012 there has been decline in the work force in the agriculture and allied sector by over 36 million . In the non-agricultural sector jobs increased by 51 million respectively. So it is a good sign that more jobs being created in the non-agricultural because we have their more opportunities , better income but the thing is that even this job creation is preety wrong. This India is witnessing a jo bless growth despite almost 7% growth rate in the GDP . So from this analysis we can see like the growth rate is very small harday 1% while you know the number which we requirement is much higher so job creation has been very small. 

    So why this is haplening when they economy is glowing the jobs are not growing and for that we have to understand the explain the concept of employment elasticity . So what is EMPLOYMENT ELASTICITY : Employment Elasticity is a measure of the 1% change in employment associated with % change in economic growth i.e GDP.   That means when GDP increase by 1% how much 1% job is increased so that is what is called Employment Elasticity.

      It indicates the ability of an economy to generate employment opportunities for its population as % of its growth process. So for example If the GDP is rising by 7% and employment elasticity is one that basically mean that 7% new job should be coming every year. But unfortunatly that is not the situation. If you talk about the employment elasticity in India in the last decades de lines from 0.44 in the first half of the de cases 1999-2000 to 2004-2005 , to as low as 0.01 during second half of the decades 2004-05 to 2009-10 . So high growth is thus a necessay but not a sufficient condition for increasing employment in a country. 

AN ANOMALY OR AN OUTCOME OF ECONOMICS REFORM :

    ECONOMIC REFORM : Some experts believe that the jobless growth is the results of the economics reforms in which india opened its market for the foreign companies and adopted the mineral import policies. This has led to the closure of many local industries causing huge unemployment. 

ANOMALY : part of the growth may as a result of growth in commodity price , productivity or boom in the stock market evaluations , increase in the real estate price etc. Which is not leading to the actual growth rate of supplies.

REASONS FOR SLOW GROWTH OF EMPLOYMENT :

1. Construction sectors is going through depression.

2. Industrial growth has came down significantly.

3. Increase in imports.

4. No significant increase in the real export of goods and services .

5. Impact of demonitization on the informal sector.

6. Stagnation in the IT sector .

7. Protective measure by US and other developed countries.

GOVERNMENT STEPS FOR IMPROVING EMPLOYMENT :

1. Mahatma Gandhi Rural Employment Guarantee (MGNREGA).

2. Startup India to promote entrepreneurship.

3. Self employment scheme : Mudra yojana , incentives and financial support.

4. Ski development like skill development India Mission.

5. Improve the quality of education.

6. Focus on the vocational courses.

7. Development of the infrastructure roads, building .

8. Filling up the vacant post in government organisation.

Thanking you.