Introduction

India’s economic growth in recent decades, particularly post-liberalization, has been remarkable, averaging around 6-7% annually. However, it is often criticized as "jobless growth" due to inadequate employment generation despite robust GDP expansion.

Body

1.Evidence Supporting Jobless Growth

The Periodic Labour Force Survey (PLFS) 2020-21 reported a rise in the unemployment rate to 6.1% in 2017-18, the highest in four decades, despite high GDP growth.

Automation and capital-intensive sectors like IT and manufacturing have dominated, creating fewer jobs. For example, the IT sector contributes 7.4% to GDP but employs only 2.7 million directly.

Informal sector employment has stagnated, and rural job creation has not kept pace with population growth, as reflected in declining labour force participation rates.

2.Counterarguments