How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country?

Theme

T128 Employment: jobless growth, informality, unemployment measurement, labour productivity

What UPSC asks in this theme

UPSC asks whether unemployment is structural and how it is measured, jobless growth, globalisation reducing formal jobs, and labour productivity-led growth vs job creation.

What to cover

• Types of unemployment; PLFS methodology (usual status, CWS)
• Jobless growth debate and data
• Informalisation and its effects
• Labour productivity vs employment elasticity
• Labour-intensive sectors

Writing the answer

• Use data; propose a job-rich growth pattern

These notes are for the whole theme, built from all 4 of its PYQs. UPSC does not publish model answers.