Why did not shift out of primary sector happened in case of employment although there has been a change in the share of the three sectors in GDP?
A remarkable fact about India is that, while there has been a change in the share of the three sectors in GDP, a similar shift has not taken in employment.
- A similar shift out of primary sector did not happen in case of employment because not enough jobs were created in the secondary and tertiary sectors.
- Even though industrial output of the production of goods went up by eight times during the period, employment in the industry went up by only 2.5 times.
- While production in the service sector rose by 11 times, employment in the service sector rose less than three times.
As a result, more than half of the workers in the country were working in the primary sector mainly in agriculture producing only a quarter of GDP.