High on IT, job market in recovery mode
After the loss of five lakh jobs in a single quarter (October to December 2008), following the collapse of US economy, the last one-year — July 2009 to June 2010 — has seen an increase of 13.68 lakh in employment figures. Prasad Nichenametla reports.india Updated: Oct 17, 2010 00:02 IST
Revival of the jobs scene is not just limited to the recruitments in the IIMs.
After the loss of five lakh jobs in a single quarter (October to December 2008), following the collapse of US economy and repercussions in the country, the last one-year — July 2009 to June 2010 — has seen an increase of 13.68 lakh in employment figures.
The trend reflecting the upward projection of 8.5 to over nine percent GDP for the financial year comes riding on the jobs in the IT / BPO sector with 8.54 lakh added in the period.
According to the Labour Bureau survey report on the effect of economic slowdown on employment, the growth that slipped back in January-March, after impressive growth in previous two quarters, revived with June quarter again.
In comparison to the loss of of 1.31 lakh jobs in April-June (over the previous quarter) in 2009, the corresponding period this year recorded an increase of 1.62 lakh jobs. This is the seventh such quarterly report of the bureau under Ministry of Labour and Employment, compiled in October says.
But overall, the impressive revival is limited to IT/BPO with transport, textiles and looms looking grim and fluctuating even now. For example, textiles recorded a decline of 63,000 jobs in April-June over what there were in January – February.
“The revival of job market is much to do with quick come back of the IT/BPO, while traditional, manufacturing sectors are still in slump or limping back,” an official of Labour and Employment Ministry said.
Officials expect ‘the positive trend — a result of government’s stimulus packages’ to continue in the July – September and later quarters.
September-October 2008 was the time when jobs were vanishing — from big shot investment banks to small textile processing units alike —owing to global slump.
The survey of the Labour Bureau covering eight major sectors — textiles, leather, metals, automobiles, gems and jewellry, transport, IT/BPO, hand / power loom is indicative of the overall trend of labour market.
Though after the first survey (October – December 2008) which reported loss of five lakh jobs, all quarterly surveys showed improvement to some extent, April-June 2009 showed a negative decline — loss of 1.31 lakh.
A positive trend is the addition of more direct category (80 per cent) of workers than on contract. But this is also owing to the IT BPO sector where 8.36 lakh direct workers were added. Employment in exporting units increased by 11.48 lakh.