More jobs? Forget IT, look at healthcare instead
Wednesday, January 8, 2014
Finance and information technology may be the sectors everybody wants to be in. But when it comes to jobs creation in a growing economy like India, these sectors are turning out to be laggards as they are less labour-intensive. Health and construction sectors are the ones that have the potential to create more jobs.
According to a Crisil report, India’s GDP growth during the boom years has largely been driven by information technology, financial and business services, but these sectors have not contributed significantly to employment. This is because these sectors require only 1-2 people to produce Rs 1 million (Rs 10 lakh) of real-value added GDP. In other words, high growth in these sectors have failed to create incremental employment as labour has been substituted by capital.