IDEAS home Printed from https://ideas.repec.org/a/spr/ijlaec/v66y2023i4d10.1007_s41027-023-00462-5.html
   My bibliography  Save this article

Discerning the Long-Term Pace and Patterns of Employment in India

Author

Listed:
  • Balakrushna Padhi

    (BITS Pilani)

  • D. Tripati Rao

    (Indian Institute of Management Lucknow)

  • T. Triveni

    (Economics Statistics & Evaluation Division, Ministry of Agriculture & Farmers Welfare, Krishi Bhawan)

Abstract

This study examines the pace and pattern of employment in India during the last four decades using the Employment-Unemployment Survey (EUS) (1983 to 2011–12) and Periodic Labour Force Survey (PLFS) (2017–18 to 2020–21). The estimates reflect that, notwithstanding the impressive economic growth, aided by demographic dividend, the economy has witnessed a low sustained employment generation. The present analysis reflects a notable increase in both output growth and employment between the years 1983 and 2004-05. However, subsequent to this period, there exists a distinct phase of economic development characterised by a lack of job creation from 2004–05 to 2017-18 and a rebound thereafter. The concerning divergence between Gross Value Added (GVA) growth and employment growth is reflected in the continued dominance of agriculture in terms of employment share even when its GVA share is dismal. Besides, the low employment elasticities of non-farm sectors including industry and services indicate the inability of the non-farm sector to absorb additional labour force and hence sluggish employment opportunities. The slow rate of employment growth during the period of high economic growth failed to bring down overall unemployment. Consequentially, the findings serve as a rebuttal to the claim of ‘slow’ structural transformation. Not only that the labour market is characterising by significant gender disparity, but there is also a growing level of unemployment for the highly educated youth than the less educated. Apparently, economic growth rather than creating more jobs has resulted in net labour displacement as can be seen from the disaggregated analysis of Labour Force Participation Rate (LFPR), Work Force Participation Rate (WFPR), and unemployment rate. The discourse of falling and lower employment elasticities and strong GVA growth painting a discordant picture of the economy calls for an urgent policy redressal in expanding the human capacity to participate in the new economic and social opportunities.

Suggested Citation

  • Balakrushna Padhi & D. Tripati Rao & T. Triveni, 2023. "Discerning the Long-Term Pace and Patterns of Employment in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(4), pages 975-1004, December.
    • Handle: RePEc:spr:ijlaec:v:66:y:2023:i:4:d:10.1007_s41027-023-00462-5
    DOI: 10.1007/s41027-023-00462-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s41027-023-00462-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s41027-023-00462-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    2. Dani Rodrik & Arvind Subramanian, 2005. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," IMF Staff Papers, Palgrave Macmillan, vol. 52(2), pages 193-228, September.
    3. Clément Imbert & John Papp, 2015. "Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 233-263, April.
    4. Stephan Klasen & Janneke Pieters, 2015. "What Explains the Stagnation of Female Labor Force Participation in Urban India?," The World Bank Economic Review, World Bank, vol. 29(3), pages 449-478.
    5. Amaresh Dubey & Wendy Olsen & Kunal Sen, 2017. "The Decline in the Labour Force Participation of Rural Women in India: Taking a Long-Run View," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(4), pages 589-612, December.
    6. Balakarushna Padhi & Udaya S. Mishra & Urmi Pattanayak, 2019. "Gender-Based Wage Discrimination in Indian Urban Labour Market: An Assessment," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(3), pages 361-388, September.
    7. Paramjit Singh & Surinder Kumar, 2021. "Demographic Dividend in the Age of Neoliberal Capitalism: An Analysis of Employment and Employability in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(3), pages 595-619, September.
    8. Ajit K. Ghose & Abhishek Kumar, 2021. "India’s Deepening Employment Crisis in the Time of Rapid Economic Growth," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(2), pages 247-279, June.
    9. Santosh Mehrotra & Jajati K. Parida, 2021. "Stalled Structural Change Brings an Employment Crisis in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(2), pages 281-308, June.
    10. Cantore, Nicola & Clara, Michele & Lavopa, Alejandro & Soare, Camelia, 2017. "Manufacturing as an engine of growth: Which is the best fuel?," Structural Change and Economic Dynamics, Elsevier, vol. 42(C), pages 56-66.
    11. Anjani Kumar & Nijara Deka & Seema Bathla & Sunil Saroj & S. K. Srivastava, 2020. "Rural Non-farm Employment in Eastern India: Implications for Economic Well-being," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(3), pages 657-676, September.
    12. Marianne Bertrand, 2018. "Coase Lecture – The Glass Ceiling," Economica, London School of Economics and Political Science, vol. 85(338), pages 205-231, April.
    13. Zhang, Xiaobo & Yang, Jin & Wang, Shenglin, 2011. "China has reached the Lewis turning point," China Economic Review, Elsevier, vol. 22(4), pages 542-554.
    14. Jamaladeen Abubakar & Ibrahim Nurudeen, 2019. "Economic Growth in India, Is It a Jobless Growth? An Empirical Examination Using Okun’s Law," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(2), pages 307-317, June.
    15. World Bank, 2009. "Female Labor Force Participation in Turkey : Trends, Determinants and Policy Framework," World Bank Publications - Reports 13249, The World Bank Group.
    16. Sundaram, K., 2013. "Some Recent Trends in Population, Employment and Poverty in India: An Analysis," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 48(1), pages 83-128.
    17. Dalila Cervantes-Godoy & Joe Dewbre, 2010. "Economic Importance of Agriculture for Poverty Reduction," OECD Food, Agriculture and Fisheries Papers 23, OECD Publishing.
    18. Ravi Srivastava, 2019. "Emerging Dynamics of Labour Market Inequality in India: Migration, Informality, Segmentation and Social Discrimination," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(2), pages 147-171, June.
    19. Arup Mitra, 2013. "Insights into Inclusive Growth, Employment and Wellbeing in India," Springer Books, Springer, edition 127, number 978-81-322-0656-9, July.
    20. Amit Basole, 2022. "Structural Transformation and Employment Generation in India: Past Performance and the Way Forward," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(2), pages 295-320, June.
    21. Farzana Afridi & Abhiroop Mukhopadhyay & Soham Sahoo, 2016. "Female labor force participation and child education in India: evidence from the National Rural Employment Guarantee Scheme," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-27, December.
    22. Rhonda Breitkreuz & Carley‐Jane Stanton & Nurmaiya Brady & John Pattison‐Williams & E.D. King & Chudhury Mishra & Brent Swallow, 2017. "The Mahatma Gandhi National Rural Employment Guarantee Scheme: A Policy Solution to Rural Poverty in India?," Development Policy Review, Overseas Development Institute, vol. 35(3), pages 397-417, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gaurav Datt & Martin Ravallion & Rinku Murgai, 2020. "Poverty and Growth in India over Six Decades," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 4-27, January.
    2. Padhi, Balakrushna & Sharma, Himja, 2023. "Changing Contours of Growth and Employment in the Indian Labour Market: A Sectoral Decomposition Approach," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 220-233.
    3. Deininger,Klaus W. & Jin,Songqing & Nagarajan,Hari Krishnan & Singh,Sudhir K., 2020. "Political Reservation and Female Labor Force Participation in Rural India," Policy Research Working Paper Series 9350, The World Bank.
    4. Rodriguez, Zachary, 2022. "The power of employment: Effects of India’s employment guarantee on women empowerment," World Development, Elsevier, vol. 152(C).
    5. Tagat, Anirudh, 2020. "Female matters: Impact of a workfare program on intra-household female decision-making in rural India," World Development Perspectives, Elsevier, vol. 20(C).
    6. Bagavathinathan, Karan Singh & Chaurey, Ritam, 2020. "Workfare programs and children’s meals intake: Evidence from India," Food Policy, Elsevier, vol. 95(C).
    7. Anders Kjelsrud & Kristin Vikan Sjurgard, 2022. "Public Work and Private Violence," Journal of Development Studies, Taylor & Francis Journals, vol. 58(9), pages 1791-1806, September.
    8. Jorge Luis García, 2025. "Guaranteed Employment in Rural India: Intra-Household Labor and Resource Allocation Consequences," NBER Working Papers 33494, National Bureau of Economic Research, Inc.
    9. Thomas Chambers & Ayesha Ansari, 2018. "Ghar Mein KÄ m Hai (There is Work in the House)," Journal of South Asian Development, , vol. 13(2), pages 141-163, August.
    10. Mohanty, Smrutirekha, 2021. "A distributional analysis of the gender wage gap among technical degree and diploma holders in urban India," International Journal of Educational Development, Elsevier, vol. 80(C).
    11. Sarkar, Sudipa & Sahoo, Soham & Klasen, Stephan, 2019. "Employment transitions of women in India: A panel analysis," World Development, Elsevier, vol. 115(C), pages 291-309.
    12. Kaya Ezgi, 2021. "Gender wage gap across the distribution: What is the role of within- and between-firm effects?," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-49, January.
    13. Warn N. Lekfuangfu & Grace Lordan, 2023. "Documenting occupational sorting by gender in the UK across three cohorts: does a grand convergence rely on societal movements?," Empirical Economics, Springer, vol. 64(5), pages 2215-2256, May.
    14. Farzana Afridi & Kanika Mahajan & Nikita Sangwan, 2022. "Employment Guaranteed? Social Protection During a Pandemic," Oxford Open Economics, Oxford University Press, vol. 1, pages 1-15.
    15. De Paola, Maria & Lombardo, Rosetta & Pupo, Valeria & Scoppa, Vincenzo, 2021. "Do Women Shy Away from Public Speaking? A Field Experiment," Labour Economics, Elsevier, vol. 70(C).
    16. Mustafizur Rahman & Marzuka Md. Al-Hasan, 2019. "Women in Bangladesh Labour Market: Determinants of Participation, Gender Wage Gap and Returns to Schooling," CPD Working Paper 124, Centre for Policy Dialogue (CPD).
    17. Grace Lordan & Jörn‐Steffen Pischke, 2022. "Does Rosie Like Riveting? Male and Female Occupational Choices," Economica, London School of Economics and Political Science, vol. 89(353), pages 110-130, January.
    18. John Levendis & Aaron Lowen, 2023. "What Same-Sex Adoption Laws Can Tell Us About the Gender Wage Gap in the United States," Journal of Family and Economic Issues, Springer, vol. 44(2), pages 473-489, June.
    19. Chatterjee, Jagori & Merfeld, Joshua D., 2021. "Protecting girls from droughts with social safety nets," World Development, Elsevier, vol. 147(C).
    20. Narayan Chandra Nayak & Bimal Kishore Sahoo & Alok Ranjan Mohanty, 2023. "Do Mahatma Gandhi NREGA and convergence measures arrest distress migration? An empirical assessment of the migration-prone regions of Odisha, India," Letters in Spatial and Resource Sciences, Springer, vol. 16(1), pages 1-22, December.

    More about this item

    Keywords

    Employment; Labour force; Workforce; GVA; Employment elasticity;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ijlaec:v:66:y:2023:i:4:d:10.1007_s41027-023-00462-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.