Why our services not absorbing the labour released by Agriculture and Manufacturing sector?
The service sector, in general, is growing at a very fast pace. It involves more use of technology and their productivity is high so that their employment generation potential is low like IT, BPO and etc.
However, on the other hand, some Services, in particular, which have better employment generating potential are growing at a low pace.
Technological Improvements have reduced employment generation potential to some extent.