Role of Private and Public employers in Economy

The economy undergoes a lot of change. Some of it is for the better while at times some may be for the worst. Overall the economy runs on the contribution of the private and public employers in the economy. Not only are the employments opportunities increased but also various others benefits accrue to the economy as well as to the society. The scope of both these sectors is a bit different but as a whole they play a vital role in the development of the economy.

Infusion of Capital

In a country like India the presence of both private and public employers are necessary which enables the economy to grow at a fast pace. Capital is essentially needed by the economy and it is through the hard work of employers of both these sectors that the capital is able to revolve in the entire economy. The private and public employer tries to attract as much capital into the country so that economy grows at a rapid pace.

Social Development

The major task of the public employer is to look after the social development. The social development will enable smooth running of the economy. On the contrary with the due passage of time it has been noted that the private employer are also venturing into it by the Corporate Social Responsibility (CSR). Hence the private employer too is concerned of the social development and is playing a vital role in it.

Job creation

Creation of jobs is one of the major activities which are played by both private and public employer. There are innumerable companies in the market and each and every day new ones are being incorporated which means the employers needs work force and staff to carry on the operations. The process of selection varies in both these sectors. Hence the economy is able to get the benefits as employment opportunities are created both by the public and private employer.

Creation of opportunities

Both private and public employers help to develop the economy and change it to better. They create opportunities which are advantageous to the entire economy. For example the roads are constructed, bridges are built, good communication system. These are particularly for the benefit of the industry but ultimately benefit the overall economy. The private as well as public employers always hunt for opportunities which will help them to earn revenue and in turn it adds to the benefits and prosperity of the economy.

Resource utilization

The biggest role of the public and private employers is that the resources are utilized to the optimum capacity. They make the best out of the available resource. This will enable the economy to get more returns. The growth will be at a rapid pace.

Conclusion

Hence it can be clearly understood from the above discussion that for the growth and development of the economy both public and private employer must work hand in hand. The advantage can be reaped by the entire economy. Moreover this will act as a catalyst in the growth process.