[《India's jobs crisis—when emerging technologies are reducing jobs while
new ones are hard to come by due to low private investment—has once again
been highlighted. The ***railways has received more than two crore
applications for about one lakh vacancies*** [emphasis added], with five
days still remaining for the online registration to end.
So many people chasing so few low-level government jobs points out that
there is a dearth of jobs in the private sector and people fall back on
government jobs due to uncertainty in the jobs market.
Despite the government's thrust on generating jobs through entrepreneurs by
giving easy small loans, 200 people chasing one job shows that the jobs
crisis in India is deep.》

(Source: '200 applicants for 1 post: India's jobs crisis gets a grim
reminder from Railways' at <
https://economictimes.indiatimes.com/jobs/200-applicants-for-1-post-indias-jobs-crisis-gets-a-grim-reminder-from-railways/articleshow/63527790.cms?utm_source=AMPusers&utm_medium=fbshare&utm_campaign=socialsharebutton&from=mdr
>.)

《The strange thing is that these were years of high growth, with real gross
domestic product (GDP) growing by 7.4% in 2014-15 and 8.2% in 2015-16. But
that hasn’t led to growth in employment. There has been much talk of
jobless growth, but what we’ve had recently seems to be job-destroying
growth.
The fall in employment in agriculture is par for the course, as people move
out of unviable marginal farming into other occupations. Throughout the
world, development has always involved people moving out of
low-productivity agriculture into higher-productivity work, thus boosting
their incomes. Unfortunately, the data indicates that not all the people
moving out of farming in India have been able to find employment in other
sectors, let alone productive sectors. Why else would total employment go
down in 2014-15 and 2015-16?》

(Excerpted from below.)]

https://www.livemint.com/Politics/sYBQOalLczD2rlAqE0xoWL/Forget-job-growth-employment-in-India-fell-between-2014-and.html

Forget job growth, employment in India fell between 2014 and 2016
Data from the latest KLEMS India database shows that employment in the
Indian economy shrank by 0.1% in 2015-16 and by 0.2% in 2014-15

Last Published: Thu, Mar 29 2018. 06 08 PM IST

Manas Chakravarty

The KLEMS India data indicates that not all the people moving out of
agriculture in India have been able to find employment in other sectors,
let alone productive sectors. Photo: Pradeep Gaur/Mint

Mumbai: Employment in the total Indian economy shrank by 0.1% in financial
year 2015-16 and by 0.2% in 2014-15. Far from more jobs being created,
employment has actually contracted.

That is the finding from the latest KLEMS India database, a research
project supported by the Reserve Bank of India (RBI) to analyse the
productivity of the Indian economy. It is part of the World KLEMS
initiative, supported by several central banks, universities and research
institutions to analyse growth and productivity patterns across the world.
The data is available on RBI’s website.

Graphic: Mint
Click here for enlarge

The data, recently updated till 2015-16, shows that employment fell in
several sectors. ‘Agriculture, forestry, fishing’, mining, manufacture of
food products, textiles, leather products, paper, transport equipment and
trade are some sectors in which employment contracted in both 2014-15 and
2015-16.

The strange thing is that these were years of high growth, with real gross
domestic product (GDP) growing by 7.4% in 2014-15 and 8.2% in 2015-16. But
that hasn’t led to growth in employment. There has been much talk of
jobless growth, but what we’ve had recently seems to be job-destroying
growth.

The fall in employment in agriculture is par for the course, as people move
out of unviable marginal farming into other occupations. Throughout the
world, development has always involved people moving out of
low-productivity agriculture into higher-productivity work, thus boosting
their incomes. Unfortunately, the data indicates that not all the people
moving out of farming in India have been able to find employment in other
sectors, let alone productive sectors. Why else would total employment go
down in 2014-15 and 2015-16?

Where did those who left agriculture find employment? In the two years to
2015-16, 70% of them found employment in the construction industry.

The number of people in the construction sector has been steadily
increasing. No doubt they have been employed in building roads and other
public works, given the poor health of the real estate sector.

The problem is that productivity in the construction industry has been
declining. The KLEMS database shows that total factor productivity in the
construction industry has been falling every year since 2006-07. People are
moving out of agriculture into another area of low and declining
productivity.

The problem of growth without commensurate employment is not new for India.
In the 10 years to 2015-16, the compound annual growth rate of employment,
according to the KLEMS database, has been a mere 0.53%. But in recent
years, it has got even worse. Surprisingly, as the accompanying chart
shows, the employment rate was much higher in the eighties and early
nineties, despite GDP growth being lower.

The question is: if employment actually shrank when GDP growth was
relatively high, what would happen to it in 2016-17 and 2017-18, when we
had lower growth and disruption in the informal sector as a result of
demonetisation and the introduction of the goods and services tax (GST)?

First Published: Thu, Mar 29 2018. 07 35 AM IST



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