Study the following chart of Employment and Gross Domestic Product. Analyse the trend of the two variables between 19902012. Analysis of the trend between 19902012:
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Countries with rapid GDP growth often exhibit lower employment elasticity, indicating economic expansion without proportional job creation. Sectoral shifts, such as a move from agriculture to services, impact overall employment trends.
The chart shows the growth rates of Employment and GDP over the period 19512012. Focusing on the period between 19902012: GDP Growth: The GDP growth rate shows a fluctuating pattern. It started low in the early 1990s, but from 1995 to 2005, there was a rapid increase, peaking at over 8 percent. This period represents strong economic growth. However, after 2005, the GDP growth rate started to moderate. Employment Growth: Employment growth has been consistently lower than GDP growth. In the early 1990s, employment growth was quite low, and although it improved over time, the increase was modest compared to the rapid GDP growth. Jobless Growth: Between 2000 and 2012, the GDP growth rate surpassed the employment growth rate significantly, indicating a "jobless growth" situation where economic output increased, but the creation of jobs did not keep pace. Conclusion: Between 19902012, the trend highlights a period of high economic growth, especially in the 2000s, but employment did not grow at a similar pace. This suggests that while the economy grew, it was not accompanied by a proportional increase in jobs, a situation that is often referred to as jobless growth.
