All Things Policy Why More Jobs Might Not Mean More Growth
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Jan 9, 2026 Sridhar Krishna, a senior scholar specializing in labor markets and productivity, joins Arindam Goswami, a research analyst on technology and economic policy. They discuss why focusing on job counts might mislead economic growth, highlighting that productivity is more crucial. The duo explores India's transition from low-wage to high-value innovation. They warn that while jobs are essential, simply increasing employment without enhancing productivity can keep many in poverty. The conversation emphasizes the need for comprehensive reforms and new metrics for success.
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Jobs Are Not The Same As Prosperity
- Job counts mislead if they ignore productivity; many people can be employed yet remain poor.
- Sridhar Krishna warns that raising labor productivity matters more than simply increasing headcount.
Employment Can Mask Low Value Creation
- India has massive employment in low-productivity agriculture contributing little to GDP.
- Arindam Goswami says counting bodies without value creation preserves poverty despite high employment.
Headcount Incentives Favor Capital Over Wages
- Firms that optimise for headcount tend to favour cheap labour over efficiency, shifting gains to capital not workers.
- Arindam notes manufacturing absorbed capital inefficiently while wages stagnated.