ABSTRACT
A neo-liberal economic policy has resulted in substantial degree of internal and external economic liberalisation since the 1990’s. While a shift from a “mixed economy” to a “market-driven” economy has accelerated growth rates, these policies have suffered flaws in terms of labour market outcomes. Among the most worrisome labour market outcomes is the fact that the pace of employment generation has been completely out of tune with the rate of growth of GDP and there has been a significant fall in the elasticity of employment with respect to output. This chapter highlights that there has been a significant dip in the absolute count of the workers in organised segments of the economy. Much of the small increase in employment has been in the categories of casual and self-employment opportunities, which have extremely adverse distributional and social welfare implications. By drawing from relevant data sources, the chapter attempts to underscore the argument that there is hardly any strategy to realise the promise of “sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all” (Goal 8).
