Tertiarisation of the Indian labour market: a new growth engine or sending distress signals?

Tertiarisation of the labour market has been associated globally with economic progress. In developing countries, labour market deformities may push people into the service economy out of distress. This paper examines the tertiarisation process in the Indian labour market to identify the reasons behind such trends and the likely impact of such movements. It is observed that the employment growth in the tertiary sector had been dynamic and growth-induced during the 1980s, but in recent times has become distress-driven. Sub-sectors within the tertiary sector are behaving differently, indicating the heterogeneity of this sector. Policymakers should note these issues and take appropriate steps not only to boost high-end jobs but also to improve productivity and returns in low-end jobs. Only then will a tertiary sector revolution in India be beneficial to the workers en masse and be sustainable. [ABSTRACT FROM AUTHOR]