Economic Reforms and Employment Growth in India

AbstractThis paper seeks to analyze the implications of economic reforms on employment trends within India’s organized sector over the last four decades. While the absolute number of jobs has risen, the relative growth rate of employment has remained disappointingly low. The private sector showed modest gains, whereas the public sector experienced a significant contraction in employment levels. During the reform era, the role of the public sector as a major employer has diminished, with noticeable job losses in recent years. Though economic liberalization has propelled GDP growth, it has not translated into parallel employment expansion, highlighting a growing disconnect between output growth and job creation.