Labour is one of the two primary factors determining the level and growth of output. Historically, every episode of growth acceleration has been associated with labour force growth and, even more importantly, with improvements in the quality of the labour force in terms of skills and also in terms of health and living conditions. Employment is the principal means through which individuals acquire a right to an income and the fruits of growth. The extent to which the growth process delivers employment on the scale needed to absorb the increase in the labour force and the manner in which the operations of the labour market and the capital market distribute the fruits of growth between workers, employers and owners of capital is a crucial factor in the state of welfare of the population. Hence, what follows explores the links between employment and two key objectives of development—growth and equity. © 2018, Indian Society of Labour Economics.
