India having trouble creating enough new jobs for its massive workforce

Study shows link between growth and job creation became weaker

In India, the world’s fastest-expanding economy, the link between growth and job creation is weakening.

New research from the privately-run Azim Premji University shows that a growth rate of 7 per cent is now leading to less than 1 per cent improvement in employment, while in the 1970s and ’80s an expansion of 3 per cent to 4 per cent was resulting in a much higher 2 per cent gain in jobs. The outcome is an unemployment rate that’s hit 5 per cent in 2015, the highest in at least 20 years.

The main reason for the worsening correlation between