Macroeconomic expansion and labour dynamics: evaluating GDP, workforce participation, and unemployment
DOI:
https://doi.org/10.67497/ijrip.1.1.34Keywords:
GDP growth, labour force participation, unemployment, economic development, skill mismatch, jobless growthAbstract
This paper was an attempt to explore the complex connection between the growth of the Indian economy, labour force, and unemployment with the aim of understanding how the growth of the GDP would be reflected in the employment outcomes in the face of structural change. The study employed quantitative methods of analysis by using correlation and regression of longitudinal economic and labour market data over several decades. The major results indicated the existence of a significant positive relationship between GDP growth and labour force participation, and a strong negative relationship between the GDP growth and the changes in the unemployment rate. Such results imply that economic growth must be augmented by specific policies on skills development, industrial modernization with employment orientation, and social constraints to the inclusive labour market participation. The implications underline the need to have holistic and gender sensitive policy frameworks that would guarantee sustainable and equalized growth in employment. The study has an added value to the literature because it clarifies the inductive nature of the relationship between economic growth and labour market performance in India and offers future research and policymaking a direction to maximise the demographic dividend and lead to an inclusive approach to developing India.
Downloads
References
Agrawal, T., & Agrawal, A. (2017). Vocational education and training: A labour market perspective. Journal of Vocational Education & Training, 69(2), 246–265. DOI: https://doi.org/10.1080/13636820.2017.1303785
Ahmed, T. (2016). Labour market outcome for formal vocational education and training: Safety net and beyond. IIMB Management Review, 28(2), 98–110. DOI: https://doi.org/10.1016/j.iimb.2016.05.002
Ajithkumar, M.U. (2016). Training of teachers: Institutionalising training and development of academic faculty of TVET institutions for realising excellence. In M. Pilz (Ed.), India: Preparation for the world of work (pp. 183–210). Wiesbaden: Springer. DOI: https://doi.org/10.1007/978-3-658-08502-5_10
Bardhan, P.K. (1979). Labour supply functions in a poor agrarian economy. American Economic Review, 69(1), 73–83.
Chaturvedi, S., Gupt, R., Gupta, P., & Sharma, S. C. (2021). Impact Of Lean Supply Chain Management Strategy On Supply Chain Performance And Organizational Productivity. Turkish Online Journal of Qualitative Inquiry, 12(7).
Chauhan, R.K., Mohanty, S.K., Subramanian, S.V., Parida, J.K., & Padhi, B. (2016). Regional estimates of poverty and inequality, 1993–2012. Social Indicators Research, 127(3), 1249–1296. DOI: https://doi.org/10.1007/s11205-015-1006-6
Desai, S., & Jain, D. (1994). Maternal employment and changes in family dynamics: The social context of women’s work in rural South India. Population and Development Review, 20(1), 115–136. DOI: https://doi.org/10.2307/2137632
Durand, J.D. (2015). The labor force in economic development: A comparison of international census data, 1946–1966. Princeton, NJ: Princeton University Press. DOI: https://doi.org/10.1515/9781400868148
Export-Import Bank of India. (2020). Self-reliant India: Approach and strategic sectors to focus. Occasional Paper No. 199. Mumbai: EXIM Bank of India.
Fatima, A., & Sultana, H. (2009). Tracing out the U-shape relationship between female labor force participation rate and economic development for Pakistan. International Journal of Social Economics, 36(1/2), 182–198. DOI: https://doi.org/10.1108/03068290910921253
Goldar, B. (2013). Determinants of import intensity of India’s manufactured exports under the new policy regime. Indian Economic Review, 48(1), 221–237.
Gupta, R., & Sharma, S. C. (2025). Exploring The Role of Digital Transformation in Promoting Green Banking Via Environmental, Social, And Governance (ESG) Factors. International Journal of Research & Technology, 13(2), 302-317.
Gupta, R., Gupta, P., & Sharma, S. C. (2020). Role of institutional investors in corporate governance & social responsibility. Test Engineering & Management, 83(May-June), 22966-22975. ISSN: 0193-4120.
Hajela, R. (2012). Shortage of skilled workers: A paradox of the Indian economy. COMPAS: SKOPE Research Paper No. 111.
Himanshu. (2011). Employment trends: a re-examination. Economic and Political Weekly, 46(37), 43–59.
Hirway, I. (2012). Missing labour force: an explanation. Economic and Political Weekly, 47(37), 67–72.
Kannan, K.P., & Raveendran, G. (2012). Counting and profiling the missing labour force. Economic and Political Weekly, 47(6), 77–80.
Kannan, K.P., & Raveendran, G. (2019). From jobless to job-loss growth. Economic & Political Weekly, 54(44), 38–44.
Kapoor, R. (2015). Creating jobs in India’s organised manufacturing sector. The Indian Journal of Labour Economics, 58(3), 349–375. DOI: https://doi.org/10.1007/s41027-016-0032-5
Kapoor, R., & Krishnapriya, P.P. (2019). Explaining the contractualisation of India’s workforce. Working Paper No. 369, Indian Council for Research on International Economic Relations (ICRIER), New Delhi.
Klasen, S., & Pieters, J. (2015). What explains the stagnation of female labor force participation in urban India? World Bank Economic Review, 29(3), 449–478. DOI: https://doi.org/10.1093/wber/lhv003
Luci, A. (2009). Female labour market participation and economic growth. International Journal of Innovation and Sustainable Development, 4(2/3), 97–108. DOI: https://doi.org/10.1504/IJISD.2009.028065
Mehrotra, S. (2014). India’s skills challenge: Reforming vocational education and training to harness the demographic dividend. New Delhi: Oxford University Press. DOI: https://doi.org/10.1093/acprof:oso/9780199452774.001.0001
Mehrotra, S. (2020). ‘Make in India’: The components of a manufacturing strategy for India. The Indian Journal of Labour Economics, 63(1), 161–176. DOI: https://doi.org/10.1007/s41027-019-00201-9
Mehrotra, S., & Guichard, S. (Eds.). (2020). Planning in the 20th century and beyond: India’s planning commission and the NITI Aayog. New Delhi: Cambridge University Press. DOI: https://doi.org/10.1017/9781108859448
Mehrotra, S., & Parida, J.K. (2017). Why is the LF participation of women declining? World Development, 98, 360–380. DOI: https://doi.org/10.1016/j.worlddev.2017.05.003
Mehrotra, S., & Parida, J.K. (2019). India’s employment crisis: Rising education. CSE Working Paper 2019–04, Centre for Sustainable Employment, Azim Premji University, Bengaluru.
Mehrotra, S., Gandhi, A., & Kamaladevi, A. (2015). China’s skill development system: Lessons for India. Economic and Political Weekly, 50(28), 57–65.
Mehrotra, S., Parida, J., Sinha, S., & Gandhi, A. (2014). Explaining employment trends in the Indian economy: 1993–94 to 2011–12. Economic and Political Weekly, 49(32), 49–57.
Mincer, J. (1985). Inter country comparisons of LF trends and of related developments: An overview. Journal of Labor Economics, 3(1), 1–32. DOI: https://doi.org/10.1086/298074
Mitra, P.P. (2018). Skilling and employability: Understanding challenges with special reference to West Bengal. Indian Journal of Public Administration, 64(2), 143–158. DOI: https://doi.org/10.1177/0019556117750893
Narayanamoorthy, A. (2013). Profitability in crops cultivation: Some evidence from cost of cultivation survey data. Indian Journal of Agricultural Economics, 68(902-2016-66824), 104–121.
National Skill Development Corporation (NSDC). (2013). State wise and sector wise skill gap reports. New Delhi: NSDC.
Parida, J.K. (2015). Growth and prospects of non-farm employment: Reflections from NSS data. The Journal of Industrial Statistics, 4(2), 154–168.
Psacharopoulos, G., & Tzannatos, Z. (1989). Female labor force participation: An international perspective. World Bank Research Observer, 4(2), 187–201. DOI: https://doi.org/10.1093/wbro/4.2.187
Rangarajan, C., Kaul, P.I., & Seema. (2011). Where is the missing labour force? Economic and Political Weekly, 46(39), 68–72.
Rathore, D. C. Dr. Jyoti Prasad kalita; Dr. Satish Chand Sharma; Sadhana Tiwari; Dr. Priyanka Agarwal, Major Driving Forces for Indian SME Pharmaceutical Industry: Using Porter’s Five Force Framework for a Comparative Analysis.(2023). Int. J. Life Sci. Pharma Res, 13(4), L100-L108. DOI: https://doi.org/10.22376/ijlpr.2023.13.4.SP6.L100-L108
Schultz, T.P. (1990). Women’s changing participation in the labor force: A world perspective. Economic Development and Cultural Change, 38(3), 457–488. DOI: https://doi.org/10.1086/451811
Sharma, S. C., Gupta, P., & Gupta, R. (2020). A Comparative Analysis of the Benefits of Free Trade Agreements on FDI, between Developed Countries & Developing Countries. International Journal of Management (IJM), 11(12), 1841-1852. DOI: https://doi.org/10.34218/IJM.11.12.2020.169
Singh, S., Parida, J.K., & Awasthi, I.C. (2020). Employability and earning differentials among technically and vocationally trained youth in India. The Indian Journal of Labour Economics, 63(2), 363–386. DOI: https://doi.org/10.1007/s41027-020-00222-9
Sudarshan, R.M., & Bhattacharya, S. (2009). Through the magnifying glass: Women’s work and labor force participation in urban Delhi. Economic and Political Weekly, 44(48), 59–66.
Thomas, J.J. (2012). India’s labour market over the 2000s: Surveying the changes. Economic and Political Weekly, 47(51), 39–51.
Verma, D. V., & Sharma, S. C. (2012). Different Aspects of FDI in Retail Market in India. Global Research Analysis, 1(5), 126-128.
World Bank. (2008). Skill development: The vocational education and training system. Report No. 22, Human Development Unit, South Asia Region. Washington, DC: World Bank.
Downloads
Published
Data Availability Statement
Not applicableIssue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
All articles published in the International Journal of Research, Innovation and Practice (IJRIP) are published under the Creative Commons Attribution 4.0 International License (CC BY 4.0).
Under this license, Author(s) are permitted to:
-
Read, download, copy, distribute, print, search, or link to the full texts of articles
-
Use articles for lawful purposes, including teaching, research, and derivative works
-
Adapt, remix, transform, and build upon the material for any purpose, including commercial use
Provided that appropriate credit is given to the original author(s) and the source, a link to the license is provided, and any changes made are clearly indicated.
The author(s) retain full copyright of their work and grant International Journal of Research, Innovation and Practice the right of first publication. The views expressed in published articles are those of the authors and do not necessarily reflect the views of the journal, editors, or publisher.
Deprecated: json_decode(): Passing null to parameter #1 ($json) of type string is deprecated in /home/u204019262/domains/theglobalpublishers.org/public_html/journals/plugins/generic/citations/CitationsPlugin.php on line 68
