Padhi, Balakrushna and Rani, Suman
Demystifying employment and growth patterns in India’s service sector: Three decades of economic reforms - Economic & Political Weekly - 61(28), Jul 11, 2026: p.40-50
This paper examines the evolution of service-sector growth and employment across Indian states during three decades of economic reforms. Using data from the Employment–Unemployment Survey, Periodic Labour Force Surveys, and gross value added estimates, it analyses interstate variations in service-sector output and employment performance. The findings show that service-sector output has grown faster than employment, resulting in low employment elasticity. Growth has been driven largely by capital-intensive activities, limiting job creation. Significant interstate disparities persist in both output and employment outcomes. Fixed-effects estimates of labour productivity in the service-sector underscore the need for state-specific strategies to promote inclusive service-sector growth and employment generation.- Reproduced
https://www.epw.in/journal/2026/28/special-articles/demystifying-employment-and-growth-patterns-indias.html
Demystifying employment and growth patterns in India’s service sector: Three decades of economic reforms - Economic & Political Weekly - 61(28), Jul 11, 2026: p.40-50
This paper examines the evolution of service-sector growth and employment across Indian states during three decades of economic reforms. Using data from the Employment–Unemployment Survey, Periodic Labour Force Surveys, and gross value added estimates, it analyses interstate variations in service-sector output and employment performance. The findings show that service-sector output has grown faster than employment, resulting in low employment elasticity. Growth has been driven largely by capital-intensive activities, limiting job creation. Significant interstate disparities persist in both output and employment outcomes. Fixed-effects estimates of labour productivity in the service-sector underscore the need for state-specific strategies to promote inclusive service-sector growth and employment generation.- Reproduced
https://www.epw.in/journal/2026/28/special-articles/demystifying-employment-and-growth-patterns-indias.html