October hiring strong but exports catch Europe flu
Despite slowing economic growth, job opportunities in India registered a double-digit year-on-year growth last month, say two surveys conducted by online job portals. Slowdown yes, but jobs aboundbusiness Updated: Nov 08, 2011 21:58 IST
Despite slowing economic growth, job opportunities in India registered a double-digit year-on-year growth last month, say two surveys conducted by online job portals.
According to Monster Employment Index, hiring outlook reflected in job listings for October grew 12%, while Naukri Jobspeak put it at a higher 27% over the same month in 2010.
Hot hiring areas were import-export, information technology, automotives, travel and tourism, banking services and media and entertainment.
"A look at the index for the past two years shows that there is usually a dip in hiring during the festive season," said Hitesh Oberoi, CEO and MD, Info Edge India. "However, this year the sentiment is encouraging as sectors like auto, oil and gas, IT-enabled services and manufacturing hired aggressively."
India's exports grew at a moderate 10.8% year-on-year to $19.9 billion in October, the lowest in the last two years, as problems in the US and Europe dried out orders from key export markets.
Export growth has been consistently falling from a peak of 82.0% in July to 44.3 % in August, 36.4% in September and 10.8% in October.
Last month, the Reserve Bank of India announced cheaper credit for labour intensive export oriented units, a move aimed at helping traders tide over an uncertain global market amid shrinking demand from the US and Europe.
Handicrafts, handloom and carpet exporters will be eligible for loans at 7%. The government will directly subsidise the banks for these loans.
Reacting to sharp dip in export growth, Ramu S Deora, president of Federation of Indian Export Organisations (FIEO), said exports will suffer in the third and fourth quarter also.
Exports in value terms for important products such as engineering products, which was averaging about $7.7 billion during April to September, dropped to $5 billion.
The decline in exports in October with surge in imports last month widened the trade deficit to $93.7 billion and may cross $150 billion during 2011-12.