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LATEST NEWS UPDATES | Poorer states creating most jobs -Subodh Varma

Poorer states creating most jobs -Subodh Varma

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published Published on Jun 17, 2013   modified Modified on Jun 17, 2013
-The Times of India


Most of the poorer, less industrialized states like Jharkhand, Chhattisgarh and Bihar appear to have done well in increasing their work force in the past decade according to recently released Census 2011 data. Surprisingly, richer or more urbanized states like Punjab, Haryana and Kerala have lagged far behind in job creation.

But if you take away natural population growth, the picture changes dramatically. It becomes clear that the workforce increase in the poorer states is mainly because of their higher than national average population growth. But again surprisingly, the richer states still remain at the bottom of job creation rankings.

In terms of increase in total workers' population, the top five states were Jharkhand, Chhattisgarh, Rajasthan, Assam and Bihar, counting only major states, that is, those with over 2 crore population. The increase in their respective workforce was considerably higher than the national average. The states with the least increase over the past decade were Haryana, Punjab, Andhra Pradesh, Kerala and Gujarat.

Since there is a natural growth in population, these figures do not give a correct picture of the changes in job opportunities in these states. A rough idea of what is the actual change in employment can be had by deducting the growth in population from the growth in workers. This reveals that Odisha, Assam, Kerala, Jharkhand and Rajasthan are the top five states in terms of job creation during 2001 and 2011. While Orissa, Assam and Kerala appear to benefit from a much reduced population growth rate, Jharkhand and Rajasthan seem to have genuinely boosted jobs creation.

After adjusting for population growth, the states with least job creation were Haryana, Punjab, Gujarat, Bihar and Uttar Pradesh. The latter two were hamstrung by still high population growth rates but the other three are laggards in job creation, reflecting stagnation and increased mechanization. These three also showed an absolute decline in the female workforce over 2001 and 2011.

Census counts short term workers - those doing less than six months' work in a year - separately. A look at how the cookie crumbles across the states in terms of short term work and longer term, more regular work throws up some bizarre results.

While Maharashtra, Assam, Karnataka, Rajasthan and Gujarat created the most long term workers ('main workers'), Bihar, Jharkhand, Punjab, West Bengal and Orissa added the least. On the other hand, short term, marginal workers increased by a jaw dropping 93% in Bihar, followed by Jharkhand, Chhattisgarh, Orissa, UP. This is the fragile nature of job growth in states which may appear to be adding jobs in the past decade.

The rural-urban divide is starkly shown up in job creation, reflecting the doldrums that Indian agriculture is in. Across India, rural job growth was just 13% compared to 44% in urban areas. Some of the most agriculturally advanced states like Haryana and Punjab showed a decline in rural workforce while others like Andhra Pradesh and Gujarat had very small increases.

The situation flips for urban areas where most states showed a healthy increase in the workforce. But Punjab, along with the two most urbanized states in the country, Tamil Nadu and Maharashtra, still remained at the bottom.


The Times of India, 17 June, 2013, http://timesofindia.indiatimes.com/india/Poorer-states-creating-most-jobs/articleshow/20623042.cms


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