Question

Examine how should be the economic policy of a country whose economic growth is maintained with jobless growth.

Answer 1

Jobless growth refers to a scenario where economic growth is seen in Gross Domestic Product but the economy fails to generate equivalent jobs. This scenario can be observed in developed nations as UAE and developing nations such as India. In countries like UAE, they manage to earn well through exports. But economic policy for countries like India, Brazil are the countries where the government focuses on the growth of the economy regardless of growing as a whole.

The economic policy of such economies must include following points to grow together:

1. Generation of jobs

The economy needs to boost up more jobs so that those who are willing to work can contribute their possible share to economic growth.

2. Gender unbiasedness

The developing economies re still striving to generate jobs for half of the population. Females are either underpaid or preferred less when compared to men. Incentives need to be included in the policies that employer must get if they hire women for the job.

3. More of Education sources

Not all sectors of the economy manage to get education. However, those who are well educated are given more of work and are paid more. Employers make the strategy of taking work from 1 employee, pay him 1.5 times of his salary for work of 2 employees. This increases the workload of a single employee. Therefore, we see a rise in GDP but one potential employee remains jobless. The economic policy should fix working hours in favor of the employees such that employers are forced to hire more employees that are necessary for an organization.

The jobless growth of an economy leads to economic disparity which reflects the rich becoming richer and poor becoming poorer. It is essential for such an economy to alter an economic policy to bring all the willing citizens of the economy into the pool of those who are employed.