Nature, growth and structure of manufacturing sector employment in Punjab: Implication for industrialization

Manufacturing Sector is one of the premier sectors in terms of its contribution in generating income and employment for the economy. The present study is an attempt to discover the status and potential of employment in manufacturing sector of Punjab. The study based on the data pertaining to the period 1991–92 to 2013–14, analyses employment opportunities in the manufacturing sector. The study reveals that, though capital is labour displacing but the productivity of capital did not contribute significantly to the value addition. No doubt labour productivity grew positively during study period, and positive employment elasticity reflects labour-intensive nature of the sector but still the manufacturing in Punjab economy did not show ample potential to generate employment. Technology Parks as an alternative strategy has been suggested, that not only has the capacity to raise employment, but also income and foreign exchange earnings for the economy.