Contact Us
News

1.6 million new jobs to be created this year: Ma Foi

S Shyamala, Chennai , Financial Chronicle

March 31, 2011

Back

The organised sector in India is set to create about 16 lakh jobs this year, according to the Ma Foi Randstad Employment Trends Survey released on Thursday. The top three recruiters — healthcare, hospitality and manufacturing alone are estimated to create about seven lakh jobs this year.

E Balaji, MD and CEO of Ma Foi Randstad said: "The total organised sector labour market size is about 4.5 crore. We collated inputs from 650 companies in 13 industries across eight major cities for the study. Apart from the regular top recruiters, manufacturing sector (non-machinery products) was the surprise package this year. The heightened optimism in the industry is due to increase in consumer demand."

The sector is expected to create 2.23 lakh new jobs. In 2011, healthcare sector will continue to top the table and is expected to generate 2.48 lakh new jobs. Other top sectors include hospitality (2.18 lakh), real estate (1.44 lakh) and media and entertainment (1.26 lakh). On the other hand, IT, education, banking and financial services and energy are estimated to create 1.83 lakh, 1.07 lakh, 80,700 and 24,900 jobs respectively.

Bullish sectors such as energy are not expected to recruit more because most projects have not progressed beyond the blueprint stage, Balaji added. Large recruiters such as IT and ITES are also cautious post the downturn.

Moreover, the study predicts an increase in the number of lateral hires in recruitments. Companies are looking at high-end offerings such as consultancy services in the IT industry, which requires more experienced staff. The trend may be more pronounced over the next three to four years. The ratio between fresh and lateral hires is at 70 per cent to 30 per cent now.

"Though the organised sector is optimistic about hiring, the same is not the case about wage bills. Everybody (survey respondents) spoke about pressures on margins. Wage hikes are expected to be in the narrow 10 per cent to 13 per cent range. Even the sectors that traditionally favoured over 18 per cent increase are no longer that generous," he said.

Early 2010, the study predicted creation of about 10 lakh jobs for the year. Over 11 lakh net recruitments happened last year, he added. The top three recruiters were healthcare, hospitality and the real estate sector.

Like last year, Mumbai, Delhi and NCR (national capital region) and Chennai are expected to be the top cities. While they created about 2.55 lakh jobs in 2010, this year they are expected to generate a total of 2.73 lakh employment opportunities.

Back