Goa’s tourism sector has been growing at a brisk clip over the past few years, and so is its Gross State Domestic Product (GSDP). Therefore, when the Ministry of Statistics and Programme Implementation’s National Sample Survey Office (NSSO) came out with a dismally-high unemployment rate for Goa, it set the cat among the pigeons.
It makes one wonder if Goa’s economy and tourism sectors are registering a jobless growth. Why was the State’s growth not throwing up new jobs? There could be many reasons why growth is not being reflected in the employment figures.
First, being a tourist State, Goa is predominantly a consumer economy, which is primarily driven by tourist spending. Earnings from consumer tourism constitutes a big part of the State’s tourism revenues.
A relatively new concept, ‘consumer tourism is an area of study that encompasses the activities, decisions and experiences of consumers as they obtain, consume and dispose of tourism products and services’.
A relatively new concept, ‘consumer tourism is an area of study that encompasses the activities, decisions and experiences of consumers as they obtain, consume and dispose of tourism products and services’.
This means that any uptick in the tiny State’s total income from various economic activities may not necessarily be mirrored in its job numbers as it is purely propelled by consumer spending. Close to 40 percent of Goa’s GSDP comes from tourism-related activities.
Second, and more pertinently, a high proportion of jobs created in the tourism sector – especially the private sector – are being taken up by labour force from outside the State. They are coming from states like Odisha, Jharkhand and from even as far as Nepal.
As for jobs in the public sector, informal chats with local economists reveal most government departments and offices are overstaffed and are stuck in a financial quagmire.
They are barely able to pay salaries of the existing workforce on time and pension costs are killing them. Several positions in government offices have been lying vacant for many years now.
As for jobs in the public sector, informal chats with local economists reveal most government departments and offices are overstaffed and are stuck in a financial quagmire.
Third, there is a mismatch between the kind of economic activities being undertaken and skills available in the State. A lot of jobs being created at the moment are for blue-collar workers, or in areas where most Goans do not possess adequate skills or do not want to take them up.
Today, waiters, cooks, housekeeping and front office staff at most hotels and resorts are people from outside the State, either, because they cost less or there are not enough qualified candidates available in the State.
Fourth, most entrepreneurial efforts in the State are being undertaken by migrants, who are very cost-conscious and import skills from other states if not available within Goa.
Lastly, the employment data could be slightly off-mark because of inefficient data collation, where many private sector employees remain registered at employment exchanges as they scout for government jobs or those employed in informal sector are not included in the numbers.
All this seems to have divorced the State’s economic growth from job growth.
This is what was indicated in the Periodic Labour Force Survey (PLFS) 2023-24 report, recently published by the NSSO. It shows Goa’s unemployment rate at 8.7 percent was way higher than the national average of 4.5 percent.
If the situation has to change, Goans need to take things in their hands. Plunge themselves into the entrepreneurial ventures and create jobs in the fields of their interests.
The government, on its part, can develop an ecosystem in the State that promotes entrepreneurship among Goans, and support industries that tap the skills and talents of locals.
