As per CARE RATINGS for India, in FY18 half of the formal sector firms are showing negative sales/growth but positive job growth? Explain please.


1 Answer 1


These measure different numbers. Dollar value of items sold can decrease while number of employed people can increase, so there is no contradiction here.

  • $\begingroup$ Workers are paid in dollars, too, right (or rather rupees)? $\endgroup$
    – E. Sommer
    Dec 22, 2018 at 18:18
  • $\begingroup$ @E.Sommer I am not sure what your point is. Not all workers are paid the same, and even if they were, it is possible that their product is being sold at a lower price than before. $\endgroup$
    – Giskard
    Dec 22, 2018 at 23:46
  • $\begingroup$ Sure. But workers are paid from revenues. That is, if revenue decreases and employment increases, this might call for an explanation. The fact that both are measured in different units does not appear to me as one. $\endgroup$
    – E. Sommer
    Dec 23, 2018 at 11:40

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