Global financial firm Morgan Stanley has cautioned that India must sustain ~12% GDP growth annually to avoid slipping into a “jobs trap,” where job creation fails to keep pace with workforce expansion. The firm’s analysis underscores the critical link between economic momentum and employment growth.
In a report referenced by The Economic Times and ET HR, Morgan Stanley notes that while India has made gains in certain sectors (IT, services, digital), overall job creation remains fragile. Slower growth would disproportionately affect manufacturing, construction, and lower-skill sectors — key absorbers of new entrants into the workforce.
For employees and job seekers, the warning highlights the urgency for skills development, sectoral mobility, and upskilling to stay aligned with high-growth industries. Experts say the report should catalyze policy focus on boosting investment, promoting labour-intensive sectors, and creating more robust talent pipelines. |
