Causes Of Jobless Growth

Jobless growth is in a way a self-explanatory term, which is described as a phenomenon in which the economy experiences growth while decreasing or maintaining the employment levels. It is one of the top concerns of the global economy and the persistence of this trend has forced leaders and economists to come up with possible solutions to combat it. The reason why we need to be worried about this issue is that we always see growth as an expansion and therefore we’re wired to believe that as an economy grows the opportunities also increase for everyone. Fundamentally, the level of employment needs to rise especially in the case of the developing economies, but when this fails to happen we observe what we call a jobless growth or a jobless

This results in layoffs and a reduced probability of being employed, as companies cannot afford to maintain the staff. Now, as the economy stabilizes and productivity increases, it so happens that there is no need for more labour/employees as the whole framework has changed.

So to sum up there is growth happening as evidenced by increased production and other statistics but no employment opportunities are created. If we add to this, another factor of population growth, the situation tightens, as there is now a larger workforce which results in increased competition for limited positions.

The situation works well for some people if the change in the working of industries is in favour of their skill set but the majority suffers as their work experience is rendered obsolete and only new new training will help them to be employed again. Hence, most of the time we can say that the economy is functioning at a pareto efficient state but the inequalities are visibly

There was almost a jump from the primary to the tertiary sector because of which the development of the manufacturing sector was hindered. Our literacy rate at 74.04% and lack of vocational skills also contribute to this trend making it increasingly difficult to find suitable work. The recently launched ‘Make in India’ initiative aims to support the manufacturing industry, added to this the latest skill development programmes can have a positive impact on the employment rates. The current government promises employment opportunities by promoting tourism and agro-based industries. It also aims to transform Employment Exchanges into Career Centers and connecting them with organizations through counseling and training. We can however not know how successful these efforts are going to