Thursday, June 21, 2007

Super job creator, but

According to an OECD report India created the maximum number of jobs in the world from 2000 to 2005. Excerpts:

India generated 11.3 million net new jobs per year on an average during this period, higher than 7 million in China, 2.7 million in Brazil and 0.7 million in Russia. In contrast, the average was 3.7 million in the OECD area as a whole.

The OECD report said India also had the lowest percentage of jobless people among the BRIC nations. The country's unemployment rate stood at 6 per cent in 2005. In contrast, China's unemployment rate was at 8.3 per cent, Russia 7.9 per cent and Brazil 9.3 per cent during 2005.

But the employment to population ratio was also lowest in India, the world's second most populous nation after China, at 50.5 per cent in 2005. In comparison, this ratio stood at between 66-71 per cent in the other three countries.

"In China and India, the rural sector is characterised by excess labour and remains large: despite significant rural-urban migration, almost two-thirds of Chinese workers are employed in rural areas and 79 per cent in India."

Just a few months ago, there was a huge outcry in the blogosphere on jobless growth. Where did that go? Ha, here they are, the vultures are a circling...

It may be celebration time for Indians, but is this also the right time to reflect on aspects that could bring the party crashing down? Please to be taking notes.

Meanwhile, the report itself notes, This suggests that these economies need to grow rapidly in order to be able to absorb the relatively high number of young people who will enter the labour market over the next few years.

Growth is the prescription, not the cause, experts please note...

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