Quest Journals
Journal of Research in Business and Management
Volume 11 ~ Issue 4 (2023) pp: 16-23
ISSN(Online):2347-3002
www.questjournals.org
*Corresponding Author: Anil Kumar Mohanty 16 | Page
Research Paper
A Study on Employment Generation in India:
Opportunities and Challenges
Anil Kumar Mohanty
1
Dr. Anup Kumar Roy
2
1
Research Scholar, Department of Commerce, Guru Ghasidas Vishwavidyalaya (A Central University),
2
Assistant Professor, Department of Commerce, Guru Ghasidas Vishwavidyalaya, Bilaspur, CG-495009,
Corresponding Author: Anil Kumar Mohanty
ABSRACT:
Sustaininga balance among population growth, labor force,and employment generation is challenging for a
developing country. It is possible only through productive economic policies and their effective implementation
to strengthen the country. This study descriptively analyzes the employment status (i.e., Labor Force Rate,
Employment Rate, Unemployment Rate) and economic growth(GDP Growth) in India with the help of
information collected from different sources like the Economic Outlook database, CEIC database, MOSPI
database, RBI database, etc. The entire study found better growth in employment generation in the post-reform
period as compared to the pre-reform period and in the recent past, all above-said rates are highly imbalanced
due to the lockdown during COVID-19. However, in the current situation, India is quite stable but has to make a
balance between the growth of the population, a balanced investment in rural as well as urban, and the
generation of employment with a special preference for the rural sector.The country should use the
unprecedented health and economic crisis to truly build a new social contract, it is a commitment to India @ 75
(Azadi Ki Amrit Mahotsav).
KEY WORDS: Labor Force Rate, Employment Generation, GDP Growth
Received 22 Mar., 2023; Revised 02 Apr., 2023; Accepted 05 Apr., 2023 © The author(s) 2023.
Published with open access at www.questjournals.org
I. INTRODUCTION:
India is the second most populated country withthe second largest labor productivity in the world. With
the second largest productivity, India should economically grow with the creation of adequate income for the
labor force. For the generation of income source of the labor force, the concerned ministry of the country should
not only make new policies in changing environment but also should review and amend its existing policies as
per need to generate good quality and quantity of jobs consistently.
According to International Labor Organization (ILO), the indicators that measure an economy’s ability
to generate sufficient employment opportunities for its population can provide valuable insights into the
economy’s overall development performance. These indicators include unemployment rates, the employment to
population ratios, labor force participation rates, and the growth of employment with respect to output i.e., how
much employment growth is associated with a 1% point of economic growth.
The recent pandemic has devasted the livelihood of people at large in the world. As a highly populated
country, India also suffered a lot to escape from the massive disaster situation. Usually, the survival of the
people in India depends upon the sources of income they earned. India is a labor and employment-oriented
country. The employment opportunities in India are debatable concern always i.e., during COVID-19 and pre-
pandemic periods. Basole (2022), found the weakest relationship between economic growth and employment
generation and still has even. In recent, the recovery of the gap inthe generation of employment in India during
COVID-19 and post-COVID-19 become a big challenge.
The economy of India is facing a declining elasticity of employment forever due to the low rate of labor
force participation in the productivity of the country. For that reason, the labor market is facing problems and
hampering the country's economic growth. The outputs are high levels of informality and unemployment and
high levels of open unemployment among skilled youth (Basole, 2022).