Question

Why is it not easy to maintain an employment growth rate of 2% for a country like India?

Answer 1

The rate of investment and choice of technology determine the growth rate of employment. The emphasis on growth of the economy through modernisation of production techniques has resulted in jobless growth in India. The modern techniques use capital intensive method of production, which is cost effective and gives more output by employing less labour. Therefore, it has been difficult to maintain an employment growth rate of 2% for our country.