Class 12 Indian Economic Development Notes · CBSE
Growth and Distribution of Employment
Sectoral distribution of employment across primary, secondary and tertiary sectors, the concept of jobless growth, and gender-wise and rural-urban distribution of employment. CBSE Class 12 IED notes
Notes
Jobless Growth — GDP vs Employment
Fifty years of planned development have always aimed at the expansion of the economy through an increase in national product and employment. But GDP and employment did not grow hand in hand.
GDP Growth
8.7%
annual average growth, 2005-2010 — the fastest stretch in the table below.
Employment Growth
0.28%
annual average growth, 2005-2010 — barely a ripple.
The Widening Gap
GDP grew 8.7% while employment grew only 0.28% during 2005-10. The economy produced more, but jobs did not follow. This widening gap is termed Jobless Growth.
⭐ Definition — Jobless Growth
Jobless Growth refers to a situation when the economy is able to produce more goods and services without a proportionate increase in employment opportunities — the economy rises due to technology without any increase in the level of employment.
Real-life: a printing press that installs digital machines produces the same orders with half the staff. Output up, jobs down — that is jobless growth at the shop-floor level.
Key Trend: Employment never crossed 2%
From 1951 to 2012, employment growth stayed below 2% across every five-year plan — while GDP fluctuated between 2.8% and 8.7%. In the late 1990s, employment growth started declining back to the levels of the early planning years. That is the jobless-growth story of modern India.
Changing Structure of Employment — Sectoral Shift
India is an agrarian nation — a major section of our population lives in rural areas and depends on agriculture. Developmental strategies in many countries, including India, have always aimed at reducing the proportion of people depending on agriculture. Has it worked?
1972-73
1993-94
2011-12
2022-23
Primary Sector
74.3% → 46.1%
Substantial shift from farm work to non-farm work between 1972-73 and 2022-23.
Secondary Sector
10.9% → 24.9%
Factories and construction now employ nearly a quarter of the workforce.
Tertiary Sector
14.8% → 29.0%
Services are the fastest growing employer — from banking to food delivery apps.
Casualisation of Workforce
Over the last three decades (1972-2023), there has been a considerable shift of self-employed and regular salaried employees to casual wage work. This process — moving from self-employment and regular salaried employment to casual wage work — is known as casualisation of the workforce.
Self-Employed
57%
was 61.4% in 1972-73
Regular Salaried
21%
was 15.4% in 1972-73
Casual Workers
22%
was 23.2% in 1972-73
Follow the dominoes — each reason pushes another group of workers into casual work.
Distribution of Employment — Gender, Region, Sector
Where do India’s workers work? The picture changes depending on how you slice it. Switch tabs to see employment patterns by gender, region and sector.
Self-Employment
Men 54% | Women 62%
A major source of livelihood for both men and women.
Casual Work
Men 23% | Women 21%
The second major source of employment for both genders.
Regular Salaried
Men 23% | Women 17%
Men hold a greater proportion of regular salaried jobs.
Why fewer women in regular salaried employment?
- •Lack of mobility among women due to social constraints.
- •Regular salaried employment requires job skills.
- •Low level of education amongst women.