The organised sector in India has created 7,39,064 jobs between January-September 2010 and 3,94,700 more jobs are getting added in the current quarter,according to Ma Foi Randstad Employment Trends Survey (METS).
According to Ma Foi Randstad, a leading integrated HR services provider in the country, latest projection for October-December 2010 shows that India is almost back in track with the high growth rate it had achieved before the economic crisis.
At the beginning of this year METS predicted creation of 1 million new jobs in 2010. The latest METS survey reflects a more-than-anticipated growth in the hiring sector of India with a few sectors such as Healthcare, Real Estate & Construction; Hospitality and IT & ITES leading this momentum.
The latest projection for the October-December 2010 period, and estimates of actual job creation from January-September 2010, for the organised sector was arrived at, after surveying the employment trends in 660 companies across 13 industry sectors in eight major cities — Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune. These companies were queried about (a) hiring in the first nine months of the year and (b) hiring intentions over the next 3 months.
The METS findings show that while advanced economies are still going through the process of recovery from global recession, the Indian economy has shown strong signs of comeback and has gained momentum during the first two quarters of the fiscal year.
K Pandia Rajan, managing director, Ma Foi Randstad, said that “we see a strong positive growth in the overall picture of the organized employment in the country, as companies are recruiting more than what was anticipated during the beginning of this year. We see that the industries have regained their confidence and the increased momentum in the hiring process clearly signifies that the Indian economy and the sector players are preparing for further growth. We expect aggressive hiring in the coming months and also increase in salary levels.”
According to the survey, the employment trend across all sectors — BFSI, IT & ITES, pharmaceuticals; healthcare, trade, including consumer, retail and services; energy; transport, storage and communication; real estate & construction; hospitality; media & entertainment; non-machinery manufacturing; manufacturing — machinery & equipment; education, training & consulting — are growing at a robust pace which is expected to continue in the next quarter.
The sectors, covered under the survey include healthcare; real estate and construction; hospitality and IT & ITeS are among the top most sectors contributing to the country’s increasing employment base. Energy and Transport were relatively moderate performers as compared to other sectors of the economy.
The healthcare sector reported the largest employment generation in 2010 by generating 260,052 jobs and it emerged as one of the most progressive and largest service sectors in the country with an expected GDP spend of 8 per cent by 2012 from 5.5 per cent in 2009. It is believed to be the next big sector.
Sectors like hospitality, real estate and construction, IT and ITES have also joined the 100,000 plus jobs pack for 2010. Hospitality sector with a total number of 165,700 jobs in 2010 has grown tremendously during the last six months. This is due to a combination of factors like increase in foreign tourists arrival, massive investment in hotel infrastructure and open sky policies made by the government. A large number of approvals for new hotels is also likely to result in substantial job creation in the near future.
In spite of being hit hard by recession, IT & ITES sector has bounced back and reported more job creation at 116,700 compared to 97,000 jobs forecast a earlier. Inter-industry shifting of skilled workforce has increased significantly, as a result of growing demand.
The industry sectors like BFSI, Non-Machinery Manufacturing, Media & Entertainment and Education, Training & Consultancy have joined the 50,000 plus jobs pack.
Amongst the cities surveyed, Delhi and NCR has reported the greatest employment generation by creating 1,13,897 jobs in the year 2010. This region has created 44,183 jobs during the period of October to December 2010, the highest in the year so far. Large scale hiring was in place during the third quarter 2010. Commonwealth Games 2010 was also a significant contributor for the region in terms of hiring activities in the third quarter of 2010.
This was closely followed by Mumbai with 107,806 jobs in 2010. The hiring situation has improved significantly in the third quarter compared to the previous two quarters. BFSI, trade, real estate and hospitality have played a key role in this growth. In the current quarter, hiring situation is expected to be almost stable, though the growth rate may be lower due to the base effect.
