New Delhi: India may be lagging behind China in terms of economic growth or becoming a global manufacturing hub, but it has outpaced the Communist giant in creating the maximum number of jobs among the BRIC nations.
The Organisation for Economic Cooperation and Development (OECD) in its Employment Outlook 2007 report released on 19 June said India, the world’s second-fastest growing economy after China, generated more than 11 million new jobs every year during 2000 and 2005 — higher than Brazil, Russia and China.
The four countries together created over 22 million net new jobs on an average per year during 2000 and 2005, which is more than five times the net employment gains recorded in the OECD area as a whole over the same period.
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.
Paris-based OECD comprises 30 developed countries including the US, UK, France, Germany and Japan.
The famour-four emerging nations club of BRIC account for about 42% of world population and 45% of the world’s total workforce. This is far more than the 19% share of the 30-member club of developed economies for both population and labour force, OECD said.
OECD economists said in the report “the rapid recent economic expansion in the BRIC countries has led to significant employment gains in these countries”.
These significant net employment gains have translated into higher employment rates in the BRIC region. The employment rates have gone up in Brazil, India and Russia, while it has remained high in China.
OECD also said the elasticity of employment to economic growth is relatively low in China and India.
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.
Already, China’s economy is growing at the rate of more than 10% a year, while India is close behind with 8-9% GDP growth rate.
The report also noted that while overall the employment trends have continued to improve, projections suggest that 32 million persons would be unemployed in 2007 across the world, down from 33.6 million a year ago.