According to a research done by Azim Premji University, the link between growth and job creation is weakening in India. As per the report the growth rate of 7 per cent in India is now leading to less than 1 per cent improvement in employment, while in 70s and 80s an expansion of 3 per cent and 4 per cent had resulted in much higher 2 per cent gain in jobs.
The main reason for worsening correlation between growth and jobs was mismatch between skills and good jobs. The share of the good jobs which includes formal employment with regular pay accounted for only 17 per cent of the country’s 467 million workforce.
The growth rate in the country averaged 7 per cent since economic reforms began in 1991. The recent figures show that the Gross Domestic Product (GDP) expanded to 8.2 per cent in the three months, which made the world’s fastest growing economy. But unemployment still remains high among Indian young educated.
According to the study more than 23 million people with graduation and higher studies, are actively searching for jobs.