Sectoral Linkages of Output and Employment; Reflections on the Indian Economy

Abstract

Altaf Hussain Padder and B Mathavan

Economic development is defined as a sustained increase in output per capita, as well as structural changes in productive capacity and employment. A major aspect of current growth is a shift in labour from agricultural to non-agricultural output. As a result of structural transformation, which is pulling labour away from agriculture and into non-agricultural sectors at a rate determined by the labour absorbing intensity of the industrial and service sectors, the rate of employment growth is rapidly increasing. India's employment growth in agriculture and industry has slowed in a high-growth economy. The present paper tried to analyze the sectoral changes in employment across the broad economic sectors in the Indian economy during the pot-reform period. The study is based on the secondary data collected from the World Development Indicators from 1991 to 2020. Proportionate analysis and polynomial regression function were used to identify the nature and growth of sectoral employment in the Indian economy. In this study, a comparison of growth of income, employment and labour productivity will be made to assess the nature of sectoral changes in the Indian economy.

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