Eight labour intensive industries record three-quarter high employment in Q2 sequentially

The UPA government, struggling to perk up the economy, may get a bit  of  respite as the eight sectors, tracked by the Labour Bureau, reported increase  in employment by 143,000 persons during the second quarter of the current financial  year over the first quarter. This was the highest addition to employment in these sectors in three quarters. 

 

Only two of the eight sectors-- gems and jewellery and transport-- saw fall in jobs generated as the government  imposed curbs on gold  imports, showed data released by the Shimla-based bureau. On the other hand, employment in handloom-powerrloom sector was flat during  the period.  

 

It should be noted that the bureau conducted a sample survey of 2,303 units and hence did not provide exhaustive figures, but indicated a broad trend.  

 

Most of the jobs, 88% of the total, were generated by textiles and IT-BPO sectors. Of total employment created, these two sectors chipped in 1,27,000 jobs addition. While the textiles sector added to 66,000 jobs, IT-BPO sector gave employment to 61,000 additional  people in the second quarter of 2013-14 compared to the second quarter.

 

"The growth seems to be coming from the relative revival  of the US economy and to some extent the global economy as well," Shaibal Gupta, founder and member-secretary of Asian Development Research Institute in Patna, told Business Standard.

 

He said with inflation hitting the purchasing power  of the people,  domestic economy is unlikely to be giving this impetus. 

 

The US economy grew a two-year high of 4.1% in the July-September quarter of 2013. 

 

In fact, 62% of total jobs created in the textiles sector  were contributed by the exporting units. Exporters gave jobs to 41,000 people. 

 

Textiles sector was one of the few sectors showing a growth in the Index of Industrial Production figures. As per the latest official figures, while total  industrial production contracted 0.2% in April-November, textiles sector output rose  3.7%. 

 

Ironically, it was domestic sector in IT-BPO sector which added to growth in employment. Exporting units added just 10,000 jobs, while the domestic  sector  gave employment to 51,000 people. 

 

Since, the bureau has clubbed the IT and the BPO  sector, the exact addition by the BPO sector  could not be known which might have given a different picture so far as export sector is concerned.  
 

Even as a ban  on exports of iron ore is yet to be lifted, there was a marked fillip to employment generation by the metals sector. It added 11,000 jobs in the July-September quarter sequentially. In the first  quarter of 2013-14, the sector had seen a fall in jobs  by 38,000 workers. Exporting units provided jobs to 8,000 workers or 72% of the employment given by metals sector.

 

Even as automobiles sector was  in shambles, it added jobs for 7,000 people, most of which (6,000) came from exporters.

 

Gems and jewellery saw a fall in employment by 6,000 in the second quarter of 2013-14 sequentially, as the government successively hiked duty on gold imports  and allowed inbound shipment only when 20% of it is  exported. In fact,  gems  and  jewellery sector  catering to the  domestic  sector  saw  a greater fall of employment at 14,000 people. Exporters, in fact, added 6,000 jobs.    

 

Transport saw employment coming down by 2,000 persons. 

 

This was the 19th  round of the  survey, started by the Labour Bureau, for October-December, 2008 to assess the impact  of global  financial crisis on selected  labour-intensive sectors. About half  a million workers lost their jobs in that period, according  to  the survey. 

 

Employment has been a major concern for  the UPA government. Prime Minister Manmohan  Singh at his press conference had said that manufacturing was not able to generate much employment. End