The curious case of jobless growth (HD)

Checkout my websites: 1) The Floating School: http://thefloatingschool.com/ 2) The Astute Investor: http://theastuteinvestor.in/about/ Follow me on Quora Digest: https://www.quora.com/profile/Aditya-Jaiswal-58 Share the video: https://youtu.be/LkZNPndHTyA Subscribe to my channel: https://www.youtube.com/channel/UCKOKTFKpt9v0_1vXdZZjs9w/featured About this video: “The Indian economy today needs to generate 115 million non-farm jobs over the next decade to gainfully employ its workforce and reap its demographic dividend” Pranab Mukherjee, President of India. If you have been following the lectures since the beginning then you must have realized by now that India is indeed a bright spot in a slowing global economy. Its economic growth accelerated to 7.9 per cent in the first quarter of 2016, confirming India’s status as the world’s fastest expanding large economy and the most dynamic emerging market. However, the question that is often raised is, ‘Why is an economy which has been on the upswing not being able to create enough jobs?’ According to the NSSO data on employment published in 2011, the economy could add only one million jobs per year during FY 2004-2009. During this period, about 55 million citizens joined the labor force which means that about 50 million Indians failed to find employment! “Employment creation will be one of our greatest challenges for the next decade” Jayant Sinha, Minister of state for finance. The last quarterly survey by the Labour Bureau showed that India has never created so few jobs, since the survey started in 2009. The issue is alarming since almost one million new people are now entering the job market every month. The agriculture sector already employs about half of the country’s workforce but the performance of the manufacturing sector continues to disappoint. The government has put its thurst on the manufacturing sector through initiatives such as ‘Make In India’. But the Indian manufacturing sector not does not shows any positive signs, it contributes to economic growth but not necessarily to employment as most of the units are becoming more capital intensive. ‘This economic growth is capital-intensive, not labor-intensive’, Ajit Ranade, chief economic advisor to the Aditya Birla Group. In today’s lesson, we would first discuss how the of Nehru-Mahalanobis model failed to create enough employment opportunities till 1970s. Then we would discuss the issue of jobless growth and the challenges brought about by globalization. We would also discuss some concrete solutions to the problem.