By Jonathan Woetz
As India’s labor market shifts, it is time to focus on improved quality of work and the income derived from it, not simply the number of jobs being lost or created.
Statistics showing that India’s overall labor-force participation declined between 2011 and 2015 have prompted a heated public debate about whether the country is experiencing jobless growth. Scratch the surface, however, and it becomes clear that Indian labor markets are in fact undergoing a significant structural shift, away from agriculture and towards the non-farm sector, particularly construction, trade, and transport. Employment in agriculture shrank by 26 million in 2011 to 2015, while non-farm jobs rose by 33 million over this period (exhibit).
Exhibit