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India biggest job-spinner among BRIC nations: OECD

Press Trust Of India  |  New Delhi 

India may be lagging behind China in terms of economic growth, but it has outpaced the Communist giant in creating the maximum number of jobs among the BRIC (Brazil, Russia, India and China) countries.
 
The (OECD) in its Employment Outlook 2007 report, released today, said India, the world's second-fastest growing economy after China, generated more than 11 million new jobs every year during 2000 and 2005 which is higher than the figures for Brazil, Russia and China.
 
The four countries together created over 22 million net new jobs on average per year between 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.
 
Paris-based OECD comprises 30 developed countries including the US, the UK, France, Germany and Japan.
 
India generated 11.3 million net new jobs per year on average during this period, higher than 7 million in China, 2.7 million in Brazil and 700,000 in Russia. In contrast, the average was 3.7 million in the OECD area as a whole.
 
"The famous-four emerging nations club of BRIC account for about 42 per cent of world population and 45 per cent of the world's total workforce. This is far more than the 19 per cent 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 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. This ratio was in the range of 66-71 per cent in the other three countries.
 
"In China and India, the rural sector is characterised by excess labour: despite significant rural-urban migration, almost two-thirds of Chinese workers are employed in rural areas and 79 per cent in India," the report said.
 
Labour surplus in rural areas might be around 170 million workers in China and 130 million in India, the report added.
 
According to the OECD, another major employment challenge in the BRIC region lies in the significant incidence of "employment informality" in most of these countries.
 
Employment in the informal sector represents about 45 per cent of total employment in Brazil, 53 per cent in China and over 90 per cent in India.

 
 

First Published: Wed, June 20 2007. 00:00 IST
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