Dec 3, 2004

Paradox of India's growth - Not enough jobs!

From Fireaxe's Blog:

India's booming IT and software sector employs about 2 million
. But R. Nagaraj, an economist at Bombay's Indira Gandhi
Institute for Development Research, notes that is a
fraction of the
country's work force of 400 million
."These jobs are concentrated in few
pockets like Bangalore, Hyderabad and Gurgaon where they are very visible and
these young boys and girls get fairly high paying jobs, but these are only small
specks in the ocean of unemployed people in towns and villages," he said. "If
you go to smaller towns, you find that educated young people do not find
adequate jobs."With one of the fastest-growing economies in the world, it may
seem odd that India is struggling with high unemployment. That is India's
paradox, say economists. Its
economy is growing fast, but not fast
enough to hand out jobs to 10 million people who enter the work force each year
. And there is a huge backlog of people who lost jobs in recent
years and have yet to find new ones.The official
unemployment rate is
about 8 percent
of the working population. Economists, however,
say the real rate is much higher, because millions of people
have given up looking for jobs or have never registered as unemployed.