Kolkata and Chennai may have been second to Mumbai and Delhi and often appear to be losing out to Bangalore and Hyderabad, but it seems the two laggards among the four big metros are catching up at last – in terms of confidence and job creation.
A recent survey by Teamlease, a Bangalore-based staffing solutions firm shows that Chennai has recorded a 19 per cent increase in their employment outlook index at 19 per cent and Kolkata has recorded the highest increase in the business outlook index at eight per cent.
The survey was conducted with human resources heads in companies across the country to judge their hiring needs for the April-June 2007 quarter and the findings were compared with the last two quarters.
The study has worked with four indices. Apart from the two mentioned above, the study also tracked an employment trend index and a business confidence index.
The employment outlook index, which has Chennai recording the highest growth (19 points) at 93, also shows Delhi dropping by 12 from 88 to 76 and Mumbai gaining three points to reach 93. Though Kolkata has recorded a seven-point increase, it is still at a lowly 64 compared to the others.
However, Kolkata scored high on the business confidence index, with it going up from 85 to 93 -- never mind the deaths at Nandigram where police fired on people opposing land acquisitions for setting up of a Special Economic Zone. Even the Singur opposition to the Tata Motors factory seem to have not had much adverse effect.
Mumbai remained at 97 where it was in the January-March quarter, but Delhi has dropped a big 15 points to 85 from 90. Bangalore too dropped from 97 to 89. Chennai, Pune, Hyderabad and Ahmedabad too recorded growth in business confidence.
Jobs, however remain concentrated in the urban areas with 95 per cent of the employers looking to hire from the metro cities and the class one cities. Only five per cent are keen to hire from smaller towns and out of that just one per cent is looking at hiring from the rural areas.
Retail, FMCG, media in lead
The retail-FMCG-media segment is the only one to have shown an increase in the business confidence index. It has also climbed up on the employment index along with two other sectors – infrastructure and manufacturing & engineering. In both the indices, retail-FMCG-media leads the growth.
Information technology, IT-enabled services and financial services have recorded lower points than the last quarter indicating lesser hiring.