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World Bank Highlights Employment Challenges in South Asia Despite Economic Growth

  • Writer: Current Affair Writer
    Current Affair Writer
  • Apr 3, 2024
  • 2 min read

Summary and important points:


Introduction to the World Bank Report

  • The World Bank's regional update emphasizes the gap between job creation and the growing working-age population in South Asia.

Economic Growth vs. Employment Trends

  • South Asia is expected to see strong economic growth rates of 6.0-6.1% in 2024-25.

  • Despite robust economic indicators, employment growth lags behind, particularly in non-agricultural sectors.

India's Employment Scenario

  • India's employment growth has remained below the average increase in the working-age population from 2000 to 2023.

  • A 3-percentage point rebound in employment was observed in 2023, partially addressing previous declines.

Regional Growth and Employment Potential

  • The region's overall output could be 16% higher if employment rates matched those of other emerging markets and developing economies (EMDEs).

  • The World Bank identifies the underutilization of the demographic dividend as a significant missed opportunity for South Asia.

Recommendations for Job Growth

  • Enhancing women's participation in the workforce.

  • Promoting trade openness.

  • Improving the quality of education to foster a more conducive environment for business growth and job creation.

Additional Information to Remember

  • The disparity between economic growth and job creation poses a risk to the long-term development and stability of the South Asian region.

  • Addressing employment challenges is crucial for fully leveraging the demographic dividend and achieving inclusive growth.


Keywords to Remember

  • Demographic Dividend: The economic growth potential that can result from shifts in a population's age structure, mainly when the share of the working-age population is larger than the non-working-age share.

  • Non-Agricultural Sectors: Industries and services excluding agriculture, where job growth has been particularly stagnant according to the World Bank report.

  • Emerging Markets and Developing Economies (EMDEs): Countries with social or business activities in the process of rapid growth and industrialization.


Reason it's important : India risking demographic dividend

Published in : The Hindu

Date appeared in newspaper : 03 April 2024

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