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International Journal of Research in Social Sciences
Year : 2016, Volume : 6, Issue : 10
First page : ( 361) Last page : ( 393)
Online ISSN : 2249-2496.

Employment trends and employment elasticity in India after post globalization

Rani Simta

Doctorate Program, Department of Economics, Babasaheb Bhimrao Ambedkar University (A Central University), Lucknow, Uttar Pradesh

Online published on 19 November, 2016.

Abstract

The development strategy that was adopted by India after independence based on central planning, which is failed to make conscious effort to promote labour intensive employment growth. Employment trends in industries can be better understood by employment growth and employment elasticity. The low employment elasticity is the sensation of low growth in employment in comparison to output growth. Developing countries focused on low employment elasticity because of low level of job growth after economic reforms. This study focuses on the employment elasticity in industrial sectors which include Agricultural sector, Mining and Quarrying, Manufacturing, electricity, construction, wholesale retail trade, transport storage, other services in India for the period 1993–1994, 2004–2005 and 2011–2012. The study is based on secondary data. The analysis used recent available data from Census of India, NSSO reports, RBI reports to fulfill the objective. The employment elasticity's with respect to gross domestic product by industrial classification in major states has been calculated. It has been found that the employment elasticity in agriculture is found to be very low and highest employment elasticity in construction sector. The study concluded that on an aggregate level high employment elasticity is a result of increasing output but not employment in some sectors.

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Keywords

Employment growth, Industrial Sector, Gross Domestic Product, Employment Elasticity, Agricultural Sector.

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