Growth, Employment and Productivity in the Manufacturing Sector-A District-Level Analysis of Tamil Nadu: 2001-06

Using district-wise data on industrial production for the organised manufacturing sector (OMS) and unorganised manufacturing sector (UMS) in Tamil Nadu the paper shows that the relationship between employment and output growth has weakened during 2001-06 in the UMS compared to the OMS. In addition, there are districts where positive output growth has been found to be associated with zero or negative employment growth in both sectors, thus pointing to situations of jobless growth in a literal sense. For a number of districts for which estimates of elasticity of employment with respect to output growth in manufacturing could be found for the study period, the figures for the UMS were found to be lower, thus indicating a decline in the employment intensity of growth in the sector