IIM Lucknow study proposes strategies for inclusive job growth

A study by Prof. D. Tripati Rao of Indian Institute of Management Lucknow, in collaboration with researchers from Birla Institute of Technology and Science, Pilani, and the Ministry of Agriculture & Farmers Welfare, reveals that despite India’s impressive economic growth from 2004-05 to 2017-18, employment generation has lagged the country’s growing working-age population.
According to a press release by IIM Lucknow, the researchers found that the agricultural sector, though employing the most youth, contributed low value-added to the overall economy, resulting in significant employment challenges. Non-farm sectors, with greater economic potential, exhibited a lower inclination to hire, despite their capacity to uplift the economy.
Sharing his views on the research, Prof D Tripati Rao, Faculty of Economics in Business Environment, IIM Lucknow, said, “Apparently, economic growth, rather than creating more jobs, has resulted in net labour displacement. Alongside the number of jobs created, it is equally important to examine the quality and decency of jobs, as there is a strong linkage between productivity and job decency.”
Despite a remarkable economic growth phase from 2004–05 to 2017-18, job creation remained lacking, leading to a period of ‘jobless growth,’ where workers remained underutilized despite the increased working-age population (ages 15 to 64), mentioned the press release.
The analysis suggests a key policy intervention: a conscious effort to make the manufacturing sector more labour-intensive for inclusive growth. This, the researchers argue, will create high linkage effects, uplifting various industries, informed IIM Lucknow.
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