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LATEST NEWS UPDATES | Is higher economic growth eating up jobs in India? -Roshan Kishore

Is higher economic growth eating up jobs in India? -Roshan Kishore

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published Published on Apr 2, 2018   modified Modified on Apr 2, 2018
-Hindustan Times

Non-farm jobs was positive despite negative jobs growth in 2014-15 and 2015-16

The KLEM database released by RBI on 27 March, 2018 gives employment statistics for the Indian economy till 2015-16. It shows that total employment shrank by 0.2% and 0.1% in India in 2014-15 and 2015-16.

These statistics raise disturbing questions. India’s Gross Value Added (GVA) growth increased continuously between 2012-13 and 2015-16. Why did employment growth go into negative territory in these two years? Is higher economic growth leading to reduction in number of jobs in the Indian economy? Disruptions from demonetisation and goods and services tax (GST) adversely affected economic activity post 2015-16. If employment was already declining, have things deteriorated even more due to these disruptions?

A disaggregated analysis of KLEM employment numbers shows that the decline in total number of jobs is more likely to be a result of seasonal factors leading to a disproportionate decline in agricultural employment.

Between 2004-05 and 2015-16, total employment growth has been negative in three years: 2012-13, 2014-15 and 2015-16. All these are drought years.

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Hindustan Times, 30 March, 2018, https://www.hindustantimes.com/india-news/is-higher-economic-growth-eating-up-jobs-in-india/story-NEijWRymbhGzvEmWycBM7M.html


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