It is because not enough jobs are created in secondary and tertiary sector . Even enough industrial output air production of goods went up by eight times during the period, employment in industry went up only 2.5 times.

Introduction:

The tertiary sector, also known as the service sector, is a significant contributor to GDP in many countries. This sector includes various industries such as finance, hospitality, healthcare, education, and transportation. While the tertiary sector has seen substantial growth and has become a dominant force in the economy, the same shift has not necessarily translated into a significant reduction in unemployment. There are several reasons for this.

Lack of Skill Match:

One of the primary reasons for the lack of a similar shift in unemployment is the lack of a perfect match between the skills demanded by the tertiary sector and the skills possessed by the unemployed population. The jobs in the tertiary sector often require specialized skills, knowledge, and experience, which may not be readily available among the unemployed workforce. As a result, even though the tertiary sector may be expanding, the unemployed individuals may not possess the qualifications required for the available positions.

Structural Unemployment:

Another reason for the unemployment not decreasing as much despite the growth of the tertiary sector is structural unemployment. Structural unemployment refers to a mismatch between the skills and location of the available jobs and the skills and location of the unemployed individuals. The tertiary sector tends to be concentrated in urban areas, whereas unemployment may be more prevalent in rural or economically disadvantaged regions. This mismatch in location can hinder the unemployed population from accessing job opportunities in the expanding tertiary sector.

Automation and Technological Advancements:

The growth of the tertiary sector is also accompanied by automation and technological advancements. Many tasks that were previously performed by humans are now being automated, leading to a reduction in the demand for certain types of jobs. For example, self-checkout machines in supermarkets reduce the need for cashiers. This technological displacement can result in unemployment, even as the tertiary sector expands.

Economic Inequality:

Additionally, the growth of the tertiary sector may not necessarily translate into employment opportunities for all segments of society. Economic inequality can limit access to the jobs created in the tertiary sector, especially for individuals with lower levels of education or limited resources. As a result, unemployment rates may persist despite the overall growth of the sector.

Conclusion:

While the tertiary sector contributes significantly to GDP, the shift towards this sector does not always lead to a corresponding decrease in unemployment. The lack of skill match, structural unemployment, automation, and technological advancements, as well as economic inequality, are some of the factors that can explain why unemployment rates may not decrease proportionally with the growth of the tertiary sector. To address this issue, it is crucial to invest in education and training programs that equip individuals with the skills needed in the service sector, ensure equal access to job opportunities, and promote inclusive economic growth.