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Economy Doubt: Growth rate and Labour Growth

In today's 7th Feb The Hindu, Lead Editorial,
While explaining the low job creation, the writer notes,

"Our job growth rate has been lower than the entrants to the labour force."

Adding on to this, does anyone have any idea how is Growth rate of a country linked to Labour Absorption? Are there any general mathematical linkages?

Reference: http://www.thehindu.com/opinion/lead/the-manufacturing-muddle/article22671001.ece
Here, for the second time.

Comments

  • In today's 7th Feb The Hindu, Lead Editorial,
    While explaining the low job creation, the writer notes,

    "Our job growth rate has been lower than the entrants to the labour force."

    Adding on to this, does anyone have any idea how is Growth rate of a country linked to Labour Absorption? Are there any general mathematical linkages?

    Reference: http://www.thehindu.com/opinion/lead/the-manufacturing-muddle/article22671001.ece

    If you read properly it is talking about job growth rate and not growth rate of GDP. Have I answered your query?
  • edited February 7
    Normally, growth of a country is measured by GDP growth. A surging GDP is a good indicator of nation's economy.

    GDP is due to factors of production like land, labour, capital and businesses.

    Taking other factors as they are, labour is a very dynamic economic identity. The variance within the 'labour' is too significant to be ignored. An illiterate fella as well as a PhD, both are labour.

    A nation can have good growth without fully utilising her labour. This is when we have a condition of joblessness. Eg. An African agricultural country can equally have good growth if she adopts new technology in place of man-labour.

    With significant improvement in our literacy rates, the traditional vehicles of growth in India can't absord the newly educated labour entrants to the job market. Neither are these people willing to take jobs in agriculture and construction sector, currently the growth vehicles. Result is, they remain unemployed because there's not enough avenues in govt or private white collar sectors

    This is a situation of jobless growth. Growth without corresponding employment generation.

    PS - Yet to come across any math equation.
  • In today's 7th Feb The Hindu, Lead Editorial,
    While explaining the low job creation, the writer notes,

    "Our job growth rate has been lower than the entrants to the labour force."

    Adding on to this, does anyone have any idea how is Growth rate of a country linked to Labour Absorption? Are there any general mathematical linkages?

    Reference: http://www.thehindu.com/opinion/lead/the-manufacturing-muddle/article22671001.ece

    How does growth happens?
    If a pakoda seller sells 100pakodas in a day, then growth of 10% mean he needs to sell 110per day.

    How will he achieve that.. many ways..

    Use more efficient cooking machine =>Means demand of the machine increases, so the industry producing such machines will go through this same logic..and ultimately you will see either <=10% increase in labour is required for producing more pakodas.

    Or hire a helper to quickly fry the pakodas in lesser time.

    Will need ~10% more flour/besan, so demand of flour will increase this will also require more farm labour.

    The activity of increasing 10% more pakoda will involve all primary(flour, oil, onion), secondary ( more Kadhayi, more LPG production, more cooking oil manufacturing, more flour mill ), and tertiary ( more transportation of flour, more delivery of pakodas, more customers service by waiters).. all these activities will involve more LABOUR!

    I hope you get the point how GROWTH in any economic activity does require more labour/capital/land. So this way growth rate does have direct relation with labor demand but which Economic model applies and how much is beyond me.

    Sorry for using pakodas, it is trending so...
  • Wakaao said:

    Normally, growth of a country is measured by GDP growth. A surging GDP is a good indicator of nation's economy.

    GDP is due to factors of production like land, labour, capital and businesses.

    Taking other factors as they are, labour is a very dynamic economic identity. The variance within the 'labour' is too significant to be ignored.

    A nation can grow without fully utilising her labour. This is when we have joblessness. Eg. An African agricultural country can have good growth if she adopts new technology in place of man-labour.

    With significant improvement in our literacy rates, the traditional vehicles of growth in India can't absord the newly educated labour entrants to the job market. Neither are these people willing to take jobs in agri kr construction sector. Result is, they remain unemployed.

    This is a situation of jobless growth.

    PS - yet to come across any math equation.

    +1
    I didn't notice this reply earlier...

    GDP growth does correlate with labor, but how this growth occured(which sector/domain grew) is very crucial factor in determining how much labour absorption was there.
    That's why you would keep reading labour-intensive vs capital-intensive sectors....
  • GDP growth=> investment growth =>new capacity building(factory or expansion)=>labour growth
    or
    GDP growth=> investment growth=>increase in salary(skill development)=>demand increase=>labour growth
  • Employment = mc2
    :trollface:
    Saw the passion in my vulnerabilities? Now see the strength in my resolution.
  • Good explanations @Wakaao @Forumnewbie .
    Thanks.
    Here, for the second time.
  • Employment = mc2
    :trollface:

    Ule.. best definition ever. :-D :-D
  • Simple thing gdp dependent on factors of growth: land/labour/capital/entrepreneurship...

    In investment terms : c+g+(x-m)

    Now vary the variables , and growth will vary. Ryt bosses ??
  • In today's 7th Feb The Hindu, Lead Editorial,
    While explaining the low job creation, the writer notes,

    "Our job growth rate has been lower than the entrants to the labour force."

    Adding on to this, does anyone have any idea how is Growth rate of a country linked to Labour Absorption? Are there any general mathematical linkages?

    Reference: http://www.thehindu.com/opinion/lead/the-manufacturing-muddle/article22671001.ece

    If you read properly it is talking about job growth rate and not growth rate of GDP. Have I answered your query?
    Only u hve answered it aptly.waah bhai.

    common sense is seriously lacking aajkal.hehe
    Rank 42 , CSE 2017

    Live intensely.
    Dont become.Be

    https://sudhirgahlot.wordpress.com
  • edited February 8
    federer said:

    In today's 7th Feb The Hindu, Lead Editorial,
    While explaining the low job creation, the writer notes,

    "Our job growth rate has been lower than the entrants to the labour force."

    Adding on to this, does anyone have any idea how is Growth rate of a country linked to Labour Absorption? Are there any general mathematical linkages?

    Reference: http://www.thehindu.com/opinion/lead/the-manufacturing-muddle/article22671001.ece

    If you read properly it is talking about job growth rate and not growth rate of GDP. Have I answered your query?
    Only u hve answered it aptly.waah bhai.

    common sense is seriously lacking aajkal.hehe
    Yeah.. but actually,
    He used "our job growth rate..." wala line just for 'intro'...
    Adding on to this, does anyone have any idea how is Growth rate of a country linked to Labour Absorption?

    It would be travesty of common sense, if someone asks (and also the one who answers :trollface: ) :- how job-growth rate relates with labour absorption...
  • federer said:

    In today's 7th Feb The Hindu, Lead Editorial,
    While explaining the low job creation, the writer notes,

    "Our job growth rate has been lower than the entrants to the labour force."

    Adding on to this, does anyone have any idea how is Growth rate of a country linked to Labour Absorption? Are there any general mathematical linkages?

    Reference: http://www.thehindu.com/opinion/lead/the-manufacturing-muddle/article22671001.ece

    If you read properly it is talking about job growth rate and not growth rate of GDP. Have I answered your query?
    Only u hve answered it aptly.waah bhai.

    common sense is seriously lacking aajkal.hehe
    Yeah.. but actually,
    He used "our job growth rate..." wala line just for 'intro'...
    Adding on to this, does anyone have any idea how is Growth rate of a country linked to Labour Absorption?

    It would be travesty of common sense, if someone asks (and also the one who answers :trollface: ) :- how job-growth rate relates with labour absorption...

    Hehehe.right bro
    Rank 42 , CSE 2017

    Live intensely.
    Dont become.Be

    https://sudhirgahlot.wordpress.com
  • federer said:

    In today's 7th Feb The Hindu, Lead Editorial,
    While explaining the low job creation, the writer notes,

    "Our job growth rate has been lower than the entrants to the labour force."

    Adding on to this, does anyone have any idea how is Growth rate of a country linked to Labour Absorption? Are there any general mathematical linkages?

    Reference: http://www.thehindu.com/opinion/lead/the-manufacturing-muddle/article22671001.ece

    If you read properly it is talking about job growth rate and not growth rate of GDP. Have I answered your query?
    Only u hve answered it aptly.waah bhai.

    common sense is seriously lacking aajkal.hehe
    Yeah.. but actually,
    He used "our job growth rate..." wala line just for 'intro'...
    Adding on to this, does anyone have any idea how is Growth rate of a country linked to Labour Absorption?

    It would be travesty of common sense, if someone asks (and also the one who answers :trollface: ) :- how job-growth rate relates with labour absorption...

    how job-growth rate relates with labour absorption ?? are these synonymous , pardon me i dont understand english much
    signature
  • edited February 9

    federer said:

    In today's 7th Feb The Hindu, Lead Editorial,
    While explaining the low job creation, the writer notes,

    "Our job growth rate has been lower than the entrants to the labour force."

    Adding on to this, does anyone have any idea how is Growth rate of a country linked to Labour Absorption? Are there any general mathematical linkages?

    Reference: http://www.thehindu.com/opinion/lead/the-manufacturing-muddle/article22671001.ece

    If you read properly it is talking about job growth rate and not growth rate of GDP. Have I answered your query?
    Only u hve answered it aptly.waah bhai.

    common sense is seriously lacking aajkal.hehe
    Yeah.. but actually,
    He used "our job growth rate..." wala line just for 'intro'...
    Adding on to this, does anyone have any idea how is Growth rate of a country linked to Labour Absorption?

    It would be travesty of common sense, if someone asks (and also the one who answers :trollface: ) :- how job-growth rate relates with labour absorption...

    how job-growth rate relates with labour absorption ?? are these synonymous , pardon me i dont understand english much

    Sorry, then understand english much.

    And if you were serious, then yes, job growth means there has been incremental increase in number of jobs in the economy. so labor absorption is natural, because there is a large workforce. Has this quote been for a country like Russia which is under populated then labour absorption may not have been fully possible.
  • edited February 9
    @Forumnewbie Read the Question properly, the doubt was not directly an explanation of Hindu's line but was an added one. Dont be in rush to pass judgements.
    Good luck.
    Here, for the second time.
  • @Forumnewbie Read the Question properly, the doubt was not directly an explanation of Hindu's line but was an added one. Dont be in rush to pass judgements.
    Good luck.

    Lol. You need good comprehension then.

    I defended you ffs.
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