The employment intensity of output growth: a comparison of BRICS countries

Abstract

The relationship between growth, productivity and employment is not always as plain as we would like to think. In this comparative analysis of employment in the BRICS countries, the writer shows how different sectors in a country perform with regard to job creation: some sectors show growth but fewer jobs are created while others record both growth and an increase in employment. He explains these differences according to “employment elasticities” – the percentage change in employment that results from the degree of capital or labour intensive production and how this affects productivity in different sectors.