India must make employment a key driver of its growth strategy as higher economic growth by itself does not create more jobs, according to a leading US research organisation advocating sustainable development.
“Indian policymakers cannot assume that higher economic growth will automatically lead to more jobs,” Sabina Dewan, founder and director of Just Jobs at the Washington based Centre for American Progress told IANS in an e-mail interview.
Currently headed by Indian-American policy wonk Neera Tanden, who has served in both the Obama and Clinton administrations as well as presidential campaigns and think tanks, CAP was founded in 2003 by John Podesta, who served as President Bill Clinton’s White House chief of staff.
Despite high levels of economic growth, India’s economy created 60 million jobs between 2000 and 2005, but only 2 million between 2005 and 2010, she pointed out citing data from the Institute of Manpower Research.
“The government must prioritise employment as a key driver of their growth strategy,” said Dewan, who currently leads the India operations of Just Jobs programme, “dedicated to creating better livelihoods for more people around the world.”
“This entails moving from more capital-intensive to more labour-intensive growth,” said Dewan whose research examines the nexus between economic opportunity and economic growth, development and stability.
“The government must undertake necessary reforms to improve the quality of education and skills development, streamline regulations, develop infrastructure, and improve access to credit and access to energy.”
Chosen excerpts by Job Market Monitor