Workers Search For Jobs in India's Booming Economy 

India's economy is expanding steadily and sectors suchone such company. Its radiator cap assembly line
as information technology are winning new jobs for theemploys just 33 workers, the same number as a
country.decade ago, even though production has doubled. The
For several years after finishing college, 32-year-oldfactory manager, R. Premkumar, says that holding the
Lakshmi Narayan looked for a job in an office. Whenline on hiring has helped the company remain
the hunt proved futile, he began driving a delivery van.competitive in the global market.
He said he had hoped to do something better, but"We are also relying on automation. We wanted to
nothing came his way. Now, he does not even try,have the overheads come down," he said. "More of
preferring to hold down the job he has.reliability is getting achieved than what could be done
For people like Mr. Narayan, headline-grabbing newsby the pure hand."
about information technology jobs flowing into IndiaOthers, such as the Tata group, one of India's largest
from Western countries has little meaning.conglomerates, have cut their work forces by nearly
India's booming IT and software sector employs aboutone-third in recent years despite expansion.
two million people. But R. Nagaraj, an economist atJayati Ghosh, an economics professor at Jawaharlal
Bombay's Indira Gandhi Institute for DevelopmentNehru University, says the situation is dismal in both
Research, notes that is a fraction of the country'surban and rural areas. In cities, an estimated 10 percent
work force of 400 million.of Indians are employed in the organized sector, the
"These jobs are concentrated in few pockets likerest are in unregulated jobs such as pulling rickshaws.
Bangalore, Hyderabad and Gurgaon where they areAnd, she says, in rural areas, most people find work
very visible and these young boys and girls get fairlyfor only half the year, when crops are sown and
high paying jobs, but these are only small specks in theharvested.
ocean of unemployed people in towns and villages," he"In the urban areas, there has been a switch from
said. "If you go to smaller towns, you find thatformal and organized work to unorganized sectors,
educated young people do not find adequate jobs."which means the work is more insecure, it is more
With one of the fastest-growing economies in thecasual, it is more self-employed and home-based
world, it may seem odd that India is struggling with highwork," explained Ms. Ghosh. "They have lost their
unemployment. That is India's paradox, say economists.regular jobs and now they are pushing a cart selling a
Its economy is growing fast, but not fast enough tofruit on the streets. Agricultural employment is lower
hand out jobs to 10 million people who enter the workthan it was, so you really have a complete stagnation.
force each year. And there is a huge backlog of"
people who lost jobs in recent years and have yet toEconomists and government planners say the problem
find new ones.is huge, but can be tackled. Mr. Nagarraj at the Indira
The official unemployment rate is about eight percentGandhi Institute says India's bulging foreign exchange
of the working population. Economists, however, sayreserves of $120 billion and food reserves offer an
the real rate is much higher, because millions of peopleopportunity.
have given up looking for jobs or have never"Two things we have positive: we have large stocks
registered as unemployed.of foreign exchange and food grain which we did not
In the decade since India liberalized its economy,have earlier, and this can be used effectively to create
companies have steadily laid off workers as theyemployment and industrial growth," he said. "A
focused on efficiency and technology to becomelarge-scale rural works programs is something which
globally competitive.has to be undertaken to make any dent in this mass
State-owned businesses pared their payrolls byunemployment."
offering early retirement plans to employees. The jobThe job shortage was considered a major factor in
losses went all the way from managers to factorythe election defeat of the previous Hindu nationalist
workers. An estimated 15 percent of all manufacturinggovernment last May. Aware that it must address the
jobs have been lost since 1997.problem, the new Congress government recently
The manufacturing sector is expanding but it is notintroduced a food-for-work program in the country's
creating new jobs. Many factory managers,poorest districts.
discouraged from taking on new employees by lawsBut government officials admit that creating enough
that make firing impossible, are using automation toemployment for India's billion plus people is a challenge
avoid adding staff.that has no easy or quick answers.
Sundram Fastners, a Madras exporter of car parts, is