What is employment intensity/elasticity of growth? It refers to the relationship between economic growth and job creation. A higher employment intensity indicates that more jobs are created for a given increase in GDP.
How is employment intensity achieved? This is accomplished through policies that encourage labor-intensive sectors, incentivize job creation, and promote technologies that favor employment over automation.
What policies does Budget 2024-25 have for increasing employment intensity? The budget outlines fiscal incentives aimed at hiring first-time job seekers and seeks to enhance the employment intensity of economic growth through direct job creation initiatives.
How do these fiscal incentives work? These incentives offer financial benefits to companies that hire additional employees, particularly first-time job seekers, thus making labor a more attractive option compared to automation.
What is the main focus of the employment initiatives in this budget? The primary aim is to assist first-time job seekers in overcoming the 'no experience, no jobs' barrier prevalent in the labor market.
How does this budget differ from previous ones in terms of employment? Unlike prior budgets that relied primarily on indirect effects from economic growth, this budget provides a direct push for job creation.
Why is increasing employment intensity important for India? It is viewed as an economic imperative to ensure that economic growth translates into job creation, thus addressing the pressing challenges of unemployment.
What challenges remain in increasing employment intensity? Key challenges include balancing technological advancement with job creation, ensuring fiscal incentives are effective, and addressing structural issues within the labor market.
How might these policies affect different industries? While these policies may not drastically change the nature of industries, they could influence decisions regarding automation versus hiring, particularly for entry-level positions.
What is the expected impact of these measures? The government anticipates that these initiatives will boost the rate of employment growth relative to GDP growth, although the actual impact may differ across various sectors.
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