2022 GS3 Answer

Q. Economic growth in the recent past has been led by increase in labour activity.” Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity.

Question from UPSC Mains 2022 GS3 Paper

Model Answer: 

Economic growth is a measure of the increase in the production and consumption of goods and services within an economy. It is influenced by various factors, including technological advancements, capital investment, government policies, and labor activity. In recent times, labor activity has been identified as a crucial driver of economic growth.


Labor activity refers to the level of participation of the workforce in economic activities such as production, manufacturing, and service delivery. When the level of labor activity increases, there is a corresponding increase in the production of goods and services, leading to economic growth. This can be attributed to several reasons:

Increased labor supply: As the population grows, there is an increase in the number of people available for the workforce, leading to a higher labor supply. This results in increased production and consumption of goods and services, thus driving economic growth.

Technology and labor complementarity: Technological advancements have made labor more productive, leading to increased output. For example, automation in manufacturing has led to increased efficiency and output, which has contributed to economic growth.

Entrepreneurial activity: The rise of entrepreneurship has led to the creation of new businesses and jobs, leading to increased economic activity.

Growth pattern to create more jobs without compromising labor productivity:

While labor activity is a crucial driver of economic growth, it is important to ensure that job creation is not at the expense of labor productivity. This can be achieved through the following growth patterns:

Investment in education and training: Investing in education and training programs will equip the workforce with the skills required to improve labor productivity. This will lead to increased production and, in turn, job creation.

Investment in infrastructure: Investing in infrastructure such as transportation, communication, and energy will create new job opportunities while improving labor productivity.

Encouraging entrepreneurship: Encouraging entrepreneurship will create new businesses and job opportunities. This can be achieved through policies that provide incentives for startups and small businesses.

Investment in research and development: Investment in research and development will lead to technological advancements that will increase labor productivity and job creation.


In conclusion, labor activity is a crucial driver of economic growth. However, it is important to ensure that job creation is not at the expense of labor productivity. The growth patterns outlined above provide a blueprint for creating more jobs while improving labor productivity, leading to sustainable economic growth.

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