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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.
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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
