Mumbai, 31 March 2011: (Ajay Rawal) The organized sector in India is set to create about 1.6 million new jobs in the year 2011,
reveals the latest results of Ma Foi Randstad Employment Trends Survey (MEtS), the largest study on the Indian employment trends
According to MEtS, the survey of 650 companies across 13 industry sectors in eight major cities indicates that most employers are optimistic with their hiring plans for the current year.
In early 2010, MEtS predicted creation of 1 million jobs for the year. And 1,131,643 jobs were created during the year, with Healthcare (254,655), Hospitality (160,300) and Real Estate (129,312) sectors leading the pack.
The three metros – Mumbai, Delhi & NCR and Chennai took the top three places generating a total of 255,797 jobs.
In 2011, Healthcare sector will continue to top the table and is expected to generate 248,500 new Jobs. In addition to top performers like Hospitality (218,200), Real Estate (144,700) and Media & Entertainment (126,100), Manufacturing – Non-Machinery Products sector is expected to perform well, creating 223,400 new jobs.
Mumbai, Delhi NCR & Chennai will retain their top slots generating a total of 273,634 jobs among them.
Commenting on the results of the survey, Mr. E. Balaji, MD & CEO, Ma Foi Randstad said, “We are happy to see that 1million plus jobs will be created in the organised sector for the second consecutive year. The changing market scenario across the globe and the growing significance of emerging markets like India & China has led to many global corporates including these countries, in their growth and workforce strategies. This will have a positive impact and increase our growth momentum.
While there is positivity in the air, we as market leader also envisage an urgent demand to address, the biggest challenge of “Employability” that is threatening the growth. I do hope that steps will be taken in the right direction by both the government and the industry to address this issue quickly and effectively.”
Banking Financial Services & Insurance:
Total Employee Base: 907,960 New Jobs: 80,700
The stable and positive sentiments at the economic front and greater efforts towards financial inclusion have helped the BFSI sector to grow further in the last quarter of 2010. The growth of micro-finance industry, insurance sector and the increase in bank credit to commercial sector are some of the factors that are riding the growth of this industry. This year the sector is expected to add 80,700 jobs and grow at a rate of 8.9%.
Education, Training and Consultancy:
Total Employee Base: 9,794,000 New Jobs: 107,500
Education sector remained as one of the top job generators in 2010 and is expected to grow at similar rate during the first two quarters of 2011. The tendency of students to opt for job oriented education and the expansion by private players to Tier II & Tier III cities will create more number of jobs in this sector. This sector is expected to add 107,500 jobs and grow at a rate of 1.1%.
Total Employee Base: 895,500 New Jobs: 24,900
Energy sector remained weak during the year 2010, though marginal improvement was noticed in the 4th quarter in terms of employment generation. The expectations, as reported by the companies for the next two quarters, as well as for the entire 2011, are not encouraging for new job generation. The positive measures announced by the government to boost the growth of renewable energy sector is expected to generate more number of jobs in the coming years. The sector is expected to grow at a rate of 2.8%, the lowest among all sectors & add 24,900 jobs during 2011.
Total Employee Base: 3,377,652 New Jobs: 248,500
Healthcare sector remained a leading employment provider in the country, contributing to more than 16% of total estimated employment in 2010. The industry in India is anticipated to reach US$ 75 billion by 2012, growing significantly in 2011. Thus, continuing as the major employment generating sector in India. Penetration of Health Insurance, expansion to Tier II & Tier III Cities and increase in foreign investment are opening up new avenues for employment generation. The increasing popularity of medical tourism & alternative therapies are also creating new job opportunities. This sector is expected to grow at a rate of 7.4% and also lead the table by creating 248,500 jobs in 2011.
Total Employee Base: 6,111,300 New Jobs: 218,200
One of the top performing sectors in 2010, this sector is expected to add two Lakh plus jobs this year. A large scale investment in hotel infrastructure in major cities as well as Tier II & Tier III cities has lead to the boom in the sector resulting in significant creation of jobs in all levels. This sector is expected to grow at a rate 3.6% and add 218,200 jobs.
Information Technology & Information Technology Enabled Services:
Total Employee Base: 1,918,865 New Jobs: 183,000
India’s one of the largest employment generators in the organized sector, the IT & ITES sectors have remained as one of the major job providers during the year 2010. The responses from the surveyed companies suggest that the sector will keep growing in 2011 as well. Companies in the sector are consciously moving up the value chain to stay competitive in the global arena. This, along with the increase in number of rural BPO’s has impacted the employment generation in the sector positively. The sector is expected to add a total of 183,000 jobs and will post a growth rate of 9.5%.
Manufacturing – Machinery and Equipment:
Total Employee Base: 1,134,800 New Jobs: 68,400
This sector experienced significant growth in terms of employment in the last Quarter of 2010 and is poised for further growth in 2011. The resurgence in sub-sectors has played a key role in uplifting the employment base in this sector and the same is expected to continue at a significant level this year. However, higher inflation remains a cause of concern for a sustained long term growth and success. This sector is expected to add 68,400 jobs and grow at a rate of 6%.
Manufacturing – Non-Machinery Products:
Total Employee Base: 4,508,000 New Jobs: 223,400
The increase in market’s domestic demand has pushed this sector to recover early in India, compared to other emerging and developed countries. Sound macro-economic fundamentals and stimulus have also played its role in shaping the industry’s quick recovery. The growth of consumer goods sector, food, textiles, leather & related products and the increase in domestic demand is expected to create significant number of new jobs in this sector. This sector is expected to add 223,400 jobs and grow at a rate of 5%.
Media and Entertainment:
Total Employee Base: 1,356,300 New Jobs: 126,100
The employment growth in this sector was higher in the 4th quarter of 2010 and is expected to continue in 2011. Factors such as foreign investment regulation, impetus from the optimistic economy, digital lifestyle of urban population along with higher disposable income are key factors, providing a big lift to the industry. Development of technology is paving way for new job generation in this sector. This sector is expected to add 126,100 jobs and grow at a rate of 9.3%.
Total Employee Base: 2, 84,351 New Jobs: 49400
Indian Pharma sector has grown significantly and is expected to show double digit growth in 2011. Contract manufacturing is estimated to grow US $ 30 Billion, whereas contract research is estimated to reach US $ 6-10 Billion and this is paving way for new job opportunities being created in the Indian Pharmaceutical market. This sector is expected to grow at a rate 17.2% in 2011 and add 49,400 jobs.
Real Estate & Construction:
Total Employee Base: 859,312 New Jobs: 144,700
The stable economic growth has put the Real Estate and Construction sector on the high growth path again. Although the sector had experienced higher growth in 2010, it was still below the expectation. Construction sector remained a big booster for the employment growth and the current infrastructure development drive, is expected to generate substantial number of jobs in the sector. Higher level of retail and hospitality related activities is also expected to contribute to employment generation in this sector. This sector is expected to add 144,700 jobs and grow at a rate of 16.8%.
Trade including Consumer, Retail and Services:
Total Employee Base: 652,800 New Jobs: 38,600
Growth in world economy, increase in India’s export, International trade and the immense growth of the retail sector will lead to significant number of jobs being generated in this sector. The total retail sale in India is expected to reach 674.37 Billion by 2014 with expanding upper class consumer base. With the spread of retail chains, there will be more jobs created in the Tier II & Tier III cities. This sector is expected to grow at a rate of 5.9% in 2011 adding 38,600 jobs.
Transport, Storage & Communication:
Total Employee Base: 2,682,600 New Jobs: 93,300
Led by communication, this sector has performed strongly during the year 2010. Government’s initiatives such as 3G introduction and number portability will lead to higher employment generation in the coming months. Port sector has not picked the growth momentum yet and the transportation sector has shown mixed pattern. Railway traffic, Road transport and Civil Aviation are expected to play a role in creating new jobs in 2011. Increased activity in logistics related industries is another big booster for employment growth in this sector. The sector is expected to add 93,300jobs and grow at a rate of 3.5%.
Employment trends city-wise:
- The employment growth in Ahmedabad is expected to be stable during 2011 and the city is expected to generate 7,527 new jobs.
- The expectation reported by companies in Bangalore suggests further growth during 2011 and the city is expected to generate 20,794 new jobs.
- Positive momentum in job generation is expected in Chennai and the city is expected to generate 68,134 jobs in 2011 and be the third largest new job generator in the country.
- New Delhi & NCR is expected to generate 102,616 new jobs in 2011 making it the second leading city in new Job generation in the country.
- Many sectors have shown substantial growth in employment in Hyderabad and the city is expected to generate 13,489 new Jobs in 2011.
- Hiring activities have remained stable in Kolkata during fourth quarter of 2010. Similar growth is expected during 2011 with the city expecting to generate 31,759 new Jobs.
- Mumbai is expected to retain its number one position in 2011 too. The city is expected to create 102,884 new Jobs in 2011.
- Pune is expected to generate 14,720 new Jobs in 2011.