“Economic growth in the recent past has been led by increase in labour productivity”.Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity.

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.