Growth Without Growth - The Jobless Growth In South Asia: A World Bank Report

India and its neighboring nations are experiencing high growth rates, but has this growth reflected in the number of suitable jobs created? A recent World Bank report on the region “Jobless Growth” provides a comprehensive picture

- Manav Seth

The South Asian markets today are growing at rates that are significantly higher than the world average. According to one IMF estimate, the world economy grew by 3.3 percent in the last two quarters of 2017. However, while the growth rate within the developed regions of the world was around two-to-three percent, it was the developing countries that grew at over six percent — chief among which has been the economic performance of South Asian countries.

In a recent World Bank’s South Asia Economic Focus report, the region is poised for a period of growth and is expected to remain one of the fastest growing regions in the world. According to the report, growth in South Asia is forecast to pick up to 6.9 percent in 2018, mainly due to India’s recovery post the impact of strenuous economic policies like demonetization. Predicting an overall improvement in the region, the report goes on to add that growth rate should be over seven percent on average in FY 2019-20.

But looking at just one half of the story is often erroneous. The World Banks report on the South Asia region, aptly titled as “Jobless Growth”, highlights the other half — the problem of unemployment.

A case of jobless growth?

The South Asian countries today are not only identifiable for their improving rates of growth but also for another peculiar reason, its soaring labor markets. Although the many of the South Asian countries, including India, have shown a positive change in how their economies have grown, many still haven’t been able to create enough jobs to ensure their growing percentage of working population can contribute to the growth story.