Study the following chart of Employment and Gross Domestic Product. Analyse the trend of the two variables between 1990-2012. Analysis of the trend between 1990-2012:
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Between 1990 and 2012, the trend of Employment and Gross Domestic Product (GDP) shows a structural transformation. While GDP experienced significant growth due to economic liberalization and industrial expansion, employment growth remained relatively slow, indicating a shift towards capital-intensive production and increased productivity rather than labor absorption.
The chart shows the growth rates of Employment and GDP over the period 1951-2012. Focusing on the period between 1990-2012: 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 1990-2012, 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.
