Joblessness and Informalization: Challenges to Inclusive Growth in India

01 Dec, 2012


  1. Total employment in manufacturing in India increased from 44 million in 1999-2000 to 55 million in 2004-05, falling to 51 million by 2009-10

  2. Between 2004-05 and 2009-10, there has been an increase of 5 percentage points in employment in enterprises employing 20 workers and more along with a decline in employment in smaller companies with less than 6 workers from 75 to 65.6 per cent

  3. The 2009-10 employment-unemployment National Sample Survey (NSS) shows an addition of merely 2.76 million work opportunities, whereas there was an addition of 60 million to the workforce during 1999-2000 and 2004-05

  4. The total contribution of services to employment is 25.3 per cent, while that of industry is 21.5 per cent , of which 11 per cent is accounted for by manufacturing

  5. In the year 2009-10, out of 44 million employed in the construction sector, 31 million were in unorganised and the remaining 13 million were in organised enterprises


Employment intensity of growth or elasticity of employment with respect to output is a numerical measure of how employment varies with economic output. This paper tries to assess the employment intensity of output growth through an examination of employment elasticity, and potential for employment generation and decent work during the 12th Five Year Plan (2012-17)


Santosh Mehrotra, Ankita Gandhi, Partha Saha, Bimal Kishore Sahoo
Institute of Applied Manpower Research, Planning Commission, Government of India