A research from IIM Lucknow suggests tactics for equitable employment creation

Notwithstanding India’s remarkable economic growth from 2004–05 to 2017–18, as demonstrated by a study led by Prof. D. Tripati Rao of the Indian Institute of Management Lucknow and involving researchers from the Ministry of Agriculture & Farmers Welfare and Birla Institute of Technology and Science, Pilani, employment generation has not kept pace with the nation’s expanding working-age population.

The researchers discovered that, although employing the greatest number of young people, the agricultural sector offered little value to the economy as a whole, creating serious employment problems, according to a news release from IIM Lucknow. More economically viable non-farm industries showed less willingness to employ even if they may stimulate the economy.

Professor D Tripati Rao of the Faculty of Economics in the Business Environment at IIM Lucknow shared his thoughts on the study, saying, “It appears that economic growth has resulted in net labor displacement rather than the creation of more jobs.” Given the substantial correlation between productivity and job decency, it is equally crucial to assess the quality and decency of newly generated employment in addition to their quantity.

According to the press release, there was a period of “jobless growth,” when workers were underused despite a rise in the working-age population (ages 15 to 64), despite a time of extraordinary economic expansion from 2004–05 to 2017–18.

The research recommends a crucial policy intervention: a deliberate attempt to increase the labor intensity of the manufacturing sector in order to promote equitable development. According to the experts, this would have strong linking effects that will boost many sectors, as reported by IIM Lucknow.