September 2010

The higher growth rate of the Indian economy is being reflected in a significant increase in employment generation as well. According to a finance ministry official, the latest figures based on a sample survey of eight sectors show that as many as 10.66 lakh jobs were added between March, 2009, and March, 2010. The sectors include information technology (IT), information technology enabled services (ITeS), gems and jewellery, handloom, textiles, leather, metals, engineering goods and automobiles. These are labour-intensive sectors that cater mainly to the export markets and had seen massive job losses in the aftermath of the global financial meltdown triggered in October 2008. The automobile sector, which is dependent essentially on the domestic market, has shown a spectacular growth rate on the back of new models being launched and buoyant demand. This, in turn, has led to the generation of more employment. According to earlier studies carried out by the ministry of labour, employment had declined by 4.91 lakh during the October- December, 2008 quarter. Employment had then increased by 4.97 lakh during the July-September, 2009 quarter as the economy started showing some greenshoots of growth. A later survey showed that employment had improved by about 6.38 lakh during December 2009 over September 2009 due to substantial increase in employment of 5.7 lakh in the IT and BPO sectors. The labour ministry’s figures also show a net addition of 12.6 lakh during December 2008 to December 2008. While jobs had been axed and salaries slashed as firms tightened their belts to survive during the economic downturn, the revival of the industrial growth rate has led to more employment being generated once again. The total employment in the Indian economy during 2009-10 has been estimated at 506 million with an average annual growth rate of 1.97 per cent for the period 2004-05 to 2009-10. The total labour force in the country for 2009-10 has been estimated at 520 million and the figure is expected to go up to 574 million in 2014- 15, which means that 10 to 11 million new entrants are expected to join the labour force each year. The estimates indicate that employment must grow at least at 2.5 per cent a year for the next five years so that most of the open unemployment, including the additions to the labour force due to the increasing population, may be taken care of. According to projections worked out by the labour ministry a nine per cent economic growth rate of the Indian economy results in a 2.5 per cent increase in employment at the current level of absorption. Thus, while the government talks of inclusive growth it is essential to ensure a high growth rate of the economy as well if a worthwhile livelihood is to be provided to the people. Meanwhile, the government’s chief economic adviser Kaushik Basu said on Friday that he expected the economy to comfortably clock an 8.5 per cent growth rate during the current financial year. “The economy has grown at 8.8 per cent during the April-June quarter of the current financial year. I expect second quarter (Q2) growth to be lower than this and the Q3 growth again to be high and the year to end with a growth of 8.5 per cent,” Basu said. “The reason why the mediumto long- term growth prospects are even better for India is that the manufacturing sector is experiencing buoyancy rarely seen before,” he remarked. Job generators: Information technology (IT), information technology enabled services (ITeS), gems and jewellery, handloom, textiles, leather, metals, engineering goods and automobiles Bouncing back: These are labour-intensive sectors that cater mainly to the export markets and had seen massive job losses in the aftermath of the global financial meltdown triggered in October 2008. Latest surge: The total employment in the Indian economy during 2009- 10 has been estimated at 506 million with an average annual growth rate of 1.97 per cent for the period 2004-05 to 2009-10. Total count: The total labour force in the country for 2009- 10 has been estimated at 520 million and the figure is expected to go up to 574 million in 2014- 15, which means that 10 to 11 million new entrants are expected to join the labour force each year. The projection: According to the labour ministry, a nine per cent growth rate of the Indian economy results in a 2.5 per cent rise in jobs. Government’s economic adviser Kaushik Basu said the economy will grow at 8.5 per cent. courtesy : Indiatoday URL: http://8bt.in/QXMWRo Share