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Ma Foi Randstad
Employment Trends Survey
Wave 2 - 2011
in this report...

Indian Economy – Stable but requires renewed investment
?
? Methodology
Data and
? of Employment Generation in Different Sectors
Estimates

           ? Financial Services and Insurance
           Banking,
           Education, Training and Consultancy
           ?
           Energy
           ?
           Healthcare
           ?
           Hospitality
           ?
           Information Technology & Information Technology Enabled Services
           ?
           Manufacturing - Machinery and Equipment
           ?
           Manufacturing - Non-Machinery Products
           ?
           Media and Entertainment
           ?
           Pharma
           ?
           Real Estate and Construction
           ?
           Trade including Consumer, Retail and Services
           ?
           Transport, Storage and Communication
           ?


Concluding Remarks
?
Appendix
?

           A1: Expected Increase in Employment in Different Sectors
           ?
           A2: Expected Increase in Salary across Different Sectors - Lateral Job Shift
           ?
           A3: Composition of New Hires by Experience
           ?
           A4: Composition of New Hires by Functional Areas
           ?
           A5: Share of Different Hiring Sources for New Hires
           ?
           A6: City-wise Expected Employment
           ?
           A7: City-wise Expected Increase in Employment and Growth Rate
           ?
           A8: City-wise Likely Increase in Salary - Lateral Job Shift
           ?
           A9 : City-wise Share of Different Experience Brackets amongst New Hires
           ?
           A10: City-wise Share of Different Functional Areas amongst New Hires
           ?




The Ma Foi Randstad Employment Trends Survey (MEtS), conducted by Ma Foi Randstad, India’s No. 1 Integrated HR services company, is a
study on the Indian employment trends and opportunities. Started in November 2004, MEtS was conducted once a year, till 2008.
Considering the several dynamic shifts in employment, even within a year’s time, MEtS was therefore converted to a quarterly survey from
2010, to capture the changes in employment scenario in India from one quarter to another

The prime objective of this employment survey is to understand the employment trends in the organized sector on a quarterly basis. The
present survey captures the employment situation in the organized sector for the first two quarters of 2011, i.e., from January to June 2011
and the likely scenario for the third quarter of the year, i.e., from July to September 2011. The study is based on a sample survey conducted
for about 690 companies across different sectors of the economy mainly during the month of June 2011. The feedback was gathered from
the top HR personnel or top management of the companies who could share valuable insights regarding the current and as well as next
quarter scenario about employment related issues. The major focus of the survey is to estimate the changes in employment scenario across
sectors and space. The other issues highlighted in the survey are changes in salary for the lateral hiring, recruitments by experience
categories and hiring by different functional roles.

The report is presented in four sections. The first section (Section A) discusses the recent trends and an overall view of the Indian Economy.
This section is followed by Section B that provides insights about the data and methodological aspects of the study. Section C presents a
picture of the changing pattern of the employment for different sectors of the economy. A snapshot of the changing scenario for selected
cities is also given in this section. The final section (Section D) concludes the study highlighting key issues.
Indian Economy
                                                                                               stable but requires
                                                                                               renewed investment




Indian economy is passing through a critical stage. The official      Services sector growth in terms of GDP has declined marginally
revised Gross Domestic Product (GDP) estimate for the year            during both quarter 1 and quarter 2 of the current calendar
2010-11 is now at 8.5%, which is slightly lower than the              year. The share of sub-sectors - trade, hotel, transport,
estimates provided earlier. High inflation rate reflected through     communication, finance, insurance, real estate and business
the Wholesale price Index (WPI), still poses as a big threat for      services have declined during the first six months of 2011.
the economy. The hike in fuel prices effected during May-June         However, Services sector is still dominating the growth story of
2011 may lead to further escalation of prices, which might            the economy in the country. India’s merchandise exports have
prove a dampener for the economic growth sentiment. The               posted a robust growth rate of 45.3% during April-May 2011
declining Index of Industrial Production (IIP) also reflects a        in US dollar terms. India is now ranked as the 20th top
relatively dull growth sentiment in the economy.                      merchandise exporting country in world export with a share of
                                                                      1.4%. Slowdown of the economic growth has impacted
According to Asian Development Bank’s (ADB) observation,              performances of the capital market as well. The net FII inflows
combating inflation has become a complex process for the              that surged up substantially during the first three quarters of
Reserve Bank of India (RBI). The year-on-year change in WPI was       the 2010-11, has declined by 79% during the last quarter of
9.1% in May 2011 as compared to 8.7% in April 2011. It was            the last fiscal and a further decline to 85% was recorded
mostly triggered by surge in the prices of non-food items. Oil        during April and May of 2011. However, FDI inflow has shown
prices have also increased sharply from US$ 80 per barrel in          significant improvement during this period, which can be
September 2010 to US$ 114 per barrel in May 2011. Though              considered as a positive indicator for the economy.
the RBI has adopted a tight monetary policy with higher level
lending rate, inflation continues to be the major concern for the     Private investment has become one of the key determinants of
government.                                                           the growth performance of the Indian economy. The gross
                                                                      capital formation slowed down significantly to 3.7% during the
Agriculture sector registered a little lower growth rate in the       fourth quarter of the last fiscal year primarily due to reduced
second quarter of 2011 compared to the previous one. The              private investment in the economy. Government should take up
Indian meteorological department has revised its forecast             all possible measures to increase private investment flow into
marginally suggesting the monsoon would be about 95% of the           the economy. Apart from this, it is expected that by the end of
normal compared to its previous prediction of 98%. This is a          the monsoon season, the rainfall will be close to the long term
cause for concern for the policy makers, as it has a direct impact    average, which will ensure good Kharif as well as Rabi crop
on food inflation. However, for most of the food articles,            production. The industry is also expected to perform better
inflation has relatively eased up during the last few months. It is   during the second half of the year. The services sector is poised
expected that a near normal monsoon will steer the growth on          to maintain the positive momentum for the rest of the months
a stronger path in the agriculture sector.                            of the year.

The Central Statistical Organization (CSO) data on Index on
Industrial Production (IIP) shows a decline in April-May 2011 as
compared to the performance during 2010-11. The IIP recorded
was at 5.7% during April-May 2011 as compared to 10.8%
during the corresponding period of 2010.

A use-based break-up suggests that capital goods production
declined substantially during April-May 2011. This indicates
sluggish investment activities in the economy. The IIP for
Intermediate and consumer durables have also declined
considerably during this period. However, the consumer non-
durables sector has performed well and the basic goods
production has also increased marginally. This industry sector is
expected to perform better in the coming months of the year.
data sources
The study has used both primary and secondary data to arrive at different estimates. Secondary data from various
sources have been used for this study. Historical data on the manufacturing sector has been culled out from various
surveys of the Annual Survey of Industries (ASI) and publications of the Central Statistical Organization (CSO). Apart
from these sources, the other data sources used for the study are several surveys of the National Sample Survey
Organization (NSSO), Labour Statistics of India and Statistical outline of India.

The above sources have the advantage of almost universal coverage of the organized sector within their specific
domains. However, data from most of these secondary sources are not up-to-date. Therefore the estimation
procedure is used to address this problem, by using up-to-date figures on sectoral GDP and IIP.

Once estimates of base sector level employment were obtained, the data captured through primary survey of about
692 firms across sectors were used to arrive at estimates on different parameters. Rigorous estimation procedures
were used, along with the primary survey data of the companies, to estimate parameters for the first two quarters
of the year 2011 and expectations regarding the third quarter of 2011.


Coverage of Primary Survey

        Sl. No.   Sector                                                             No. of companies covered

          1       Banking, Financial Services and Insurance                                    51
          2       Education, Training and Consultancy                                          51
          3       Energy                                                                       42
          4       Healthcare                                                                   48
          5       Hospitality                                                                  51
          6       Information Technology & Information Technology Enabled Services             61
          7       Manufacturing - Machinery and Equipment                                      71
          8       Manufacturing - Non-Machinery Products                                       83
          9       Media and Entertainment                                                      36
         10       Pharma                                                                       43
         11       Real Estate and Construction                                                 58
         12       Trade including Consumer, Retail and Services                                53
         13       Transport, Storage and Communication                                         44
The sentiment is marginally dampened for a few sectors in
estimates of                                                           the last few months. However, the overall employment
                                                                       scenario is not affected much adversely due to this. The

employment                                                             optimism that was prevalent at the beginning of the year
                                                                       2010 has now weakened marginally. Continuing inflation,
                                                                       surging prices of raw materials and intermediate industrial
generation in                                                          products, several political bumps remain as a cause of
                                                                       concern for entrepreneurs. The intra-sectoral movement of
                                                                       skilled workforce continued. The change in employment
different sectors                                                      across sectors is given in the following table.

                                                                       The employment scenario at a certain point in time is a
                                                                       reflection of activities at many different fronts for a
                                                                       considerable time period. This section has the estimated
                                                                       employment numbers for first two quarters of the year, as
                                                                       well as the expectations for the third quarter. The study also
                                                                       identified key economic and political issues that might have
                                                                       an impact on the emerging trends in employment scenario
                                                                       directly or indirectly.




 Expected Employment Increase in Different Sectors

                                                                   Expected
                                                     Employment                   Increase in Employment                  Per cent increase
                    Sectors                                       increase in
                                                                                January - June   July - September   January - June   July - September
                                                      December    Employees         2011                2011            2011                2011
                                                        2010         2011         Estimated          Expected         Estimated          Expected



 Banking, Financial Services and Insurance            907,960       80,700       31,800             15,300              3.50             1.68

 Education, Training and Consultancy                 9,794,024    107,500        45,200             24,500              0.46             0.25

 Energy                                               895,502       24,900       14,600               7,900             1.63             0.88

 Healthcare                                          3,377,657    248,500       115,000             63,800              3.40             1.89

 Hospitality                                         6,111,304    218,200        94,300             54,400              1.54             0.89

 Information Technology
 & Information Technology Enabled Services           1,918,865    183,000        91,100             55,500              4.75             2.89

 Manufacturing - Machinery and Equipment             1,134,788      68,400       29,800             14,500              2.63             1.28

 Manufacturing - Non-Machinery Products              4,507,967    223,400        81,100             36,100              1.80             0.80

 Media and Entertainment                             1,356,296    126,100        56,700             31,300              4.18             2.31

 Pharma                                               284,351       49,400       24,600             11,300              8.65             3.97

 Real Estate and Construction                         859,342     144,700        75,000             29,600              8.73             3.44

 Trade including Consumer, Retail and Services        652,786       38,600       18,700             10,800              2.86             1.65

 Transport, Storage and Communication                2,682,553      93,300       26,900             14,200              1.00             0.53
Banking, Financial
Services and Insurance

Between January and June 2011, the
BFSI sector has added 31,800 jobs
and is expected to add another
15,300 jobs between July and
September 2011.                                                                                 composition of
Aggregate deposits, one of the leading indicators of banking
?
sector performance, registered a higher year-on-year growth of
                                                                                                new hires
18.1%during April to June 2011. This was 15.8% during January
to March 2011 and was hovering around 14.5% during first 3
quarters of the fiscal 2010-11. Continuous increase in aggregate
deposit is a positive indicator for the banking and financial sector.
However, it is still at a substantially lower level than the pre-crisis                                        1.7%
period, during which it was around 25%.
                                                                                                    20.0%
? contrary, year-on-year growth of bank credit to
On the
commercial sector, which is a reflection of the intensity of the                                                                27.1%
economic activities, dipped to 18% during April to June 2011.
This was 27.2% and 20.6% during quarter 3 and quarter 4 of                                                                               by Experience
2010-11.Substantial reduction in this indicator is a cause for
                                                                                                                                             < 1 Year
concern, for the companies in the banking and financial sector.
                                                                                                                                             1 - 4 Years
This has led to a cautious movement in the sector in terms of
employment generation.                                                                                                                       5 - 10 years

Continuous increase in Inflation rate has also played a negative
?                                                                                                                                            > 10 Years

role for the sector, since the government had to revise all policy
rates upwards, to combat inflation. However, the measures like
interest rate hikes may not be enough to contain inflation to a
moderate level and drive the economy on a faster growth pace.
The performance of the Insurance sector was not up to the
?
                                                                                                             51.2%
expectation, especially in last two quarters. Business was affected
due to lower demand for the products. According to industry
professionals, people are more inclined to buy traditional
insurance products than investment products and this is affecting
the profitability. The companies are mostly looking for
experienced professionals to be recruited.                                                                    2.4%
Recruitment of experienced persons also reflected in relatively
?
higher salary increase in case of lateral job shifts within the                                 36.2%
                                                                                                                            18.2%
sector.
                                                                                                                                         by Function

                                                                                                                                            Admin / Accountants etc

                                                                                                                                            Core Activities including
                                                                                                                                            Marketing and BD

                                                                                                                                            Customer Service

                                                                                                                                            Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                            43.2%




                                                                                                                        11.0%
                                                                                                24.0%

                                                                                                                                         by Hiring Sources


                               15.9%                        15.0%                                                                           Campus

                                                                                                                                            HR Agency
                       January - June 2011            July - September 2011                                                                 Referrals

                                                                                                                                            Social Media

                                                                                                                                            Others
                                                                                             7.5%
       Estimated Employment               Estimated Employment        Estimated Employment
          December 2010                         June 2011              September 2011                                            30.9%


              908,000                            939,800                   955,100
                                                                                                                26.5%

Note: Employment numbers are given as round figures
Education, Training and
Consulting

Between January and June 2011, the
Education, Training and Consultancy
sector has added 45,200 jobs and is
expected to add another 24,500 jobs
between July and September 2011.                                                                composition of
Education sector has remained as one of the significant
?
contributors to the employment base of the country during the
                                                                                                new hires
first two quarters of 2011. The sector reported a slightly higher
employment generation during the third quarter of the year in
comparison to the average of the first two quarters.
? up of large number of private institutions for education in
Setting
management, technology, medicine and other similar disciplines                                                 5.9%
has resulted in increased demand for manpower in this sector.
                                                                                                    25.7%
Rising awareness for primary education among people has
?
                                                                                                                                25.7%
boosted the growth of privately owned pre-schools. This is
expected to gather further momentum, considering that the
population of children between 2 to six years in the country is                                                                         by Experience
between 10 and 12 crores.                                                                                                                     < 1 Year
? by the National Knowledge Commission suggests that
A report                                                                                                                                      1 - 4 Years
by 2020, India will require about 1500 universities and clusters of                                                                           5 - 10 years
colleges to cater the growing student population. This shows that
                                                                                                                                              > 10 Years
this sector will remain as one of the most important employment
generating sector in the country.
?70% of the recruitments were within the experience
About
bracket of less than 5 years and led by the recruitments for core
activities including business development related jobs. This
further reflects the growth of this sector.                                                                   42.7%
This is also one of the sectors, which has shown substantial
?
recruitment through referrals and other sources including
advertisements for recruitment.

                                                                                                               5.1%


                                                                                                16.3%
                                                                                                                               17.5%

                                                                                                                                        by Function

                                                                                                                                              Admin / Accountants etc

                                                                                                                                              Core Activities including
                                                                                                                                              Marketing and BD

                                                                                                                                              Customer Service

                                                                                                                                              Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                            61.1%




                                                                                                                        8.1%

                                                                                                30.6%

                                                                                                                                           by Hiring Sources


                               16.0%                        15.0%                                                                             Campus

                                                                                                                                              HR Agency
                       January - June 2011            July - September 2011                                                                   Referrals

                                                                                                                                              Social Media

                                                                                                                                              Others


       Estimated Employment               Estimated Employment        Estimated Employment   2.8%
                                                                                                                                   27.1%
         December 2010                          June 2011              September 2011

            9,794,000                          9,839,200                  9,863,700
                                                                                                                31.6%

Note: Employment numbers are given as round figures
Energy

Between January and June 2011, the
Energy sector has added 14,600
jobs and is expected to add another
7,900 jobs between July and
September 2011.
? sector gained gradual momentum during the last quarter
Energy
of 2010 and has remained almost stable between January and
                                                                                                composition of
June 2011. This momentum is expected to continue during the
third quarter of the year too.
?for electricity has grown steadily from the third quarter of
The IIP
                                                                                                new hires
2010 and has posted an impressive 10.3% year-on-year growth
during May 2011.
Indian government has set a modest target of adding
?
approximately 78,000 MW of installed generation capacity by
                                                                                                               3.2%
2012, which suggests that during the coming months this sector
would be adding substantial number of jobs and contributing                                         38.3%
positively for the economy.                                                                                                     15.8%
The Government of India, under its programme of Jawaharlal
?
Nehru Solar Mission, plans to generate 1,000 MW of power from                                                                            by Experience
solar energy by 2013. Upto 20,000 MW grid-based solar powers
and 2,000 MW of off-grid solar power is also expected to be                                                                                  < 1 Year

generated by the end of the final phase of the mission in 2020.                                                                              1 - 4 Years

Implementation of these schemes will result in generating                                                                                    5 - 10 years
substantial number of jobs.                                                                                                                  > 10 Years
? part of the employment generation in this sector is
A large
characterized by the increase in contractual and outsourced
manpower.
? proportion of the manpower recruited during this period
A large
is for production and other core functions.
                                                                                                             42.7%
? the first six months of 2011, major recruitments were in
During
the group of experienced manpower. The recruitment of the
lesser experienced professionals was mostly for the
administration, accounts, front office related functions.

                                                                                                              5.8%


                                                                                                16.0%
                                                                                                                            17.6%

                                                                                                                                         by Function

                                                                                                                                            Admin / Accountants etc

                                                                                                                                            Core Activities including
                                                                                                                                            Marketing and BD

                                                                                                                                            Customer Service

                                                                                                                                            Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                            60.6%




                                                                                                                        13.3%
                                                                                                27.9%

                                                                                                                                         by Hiring Sources


                               16.5%                        16.3%                                                                           Campus

                                                                                                                                            HR Agency
                       January - June 2011            July - September 2011                                                                 Referrals

                                                                                                                                            Social Media

                                                                                                                                            Others
                                                                                             7.1%
       Estimated Employment               Estimated Employment        Estimated Employment
         December 2010                          June 2011              September 2011                                            27.0%


              895,500                            910,100                   918,000
                                                                                                                24.6%

Note: Employment numbers are given as round figures
Healthcare

Between January and June 2011, the
Healthcare sector has added
115,000 jobs and is expected to add
another 63,800 jobs between July
and September 2011.
Healthcare sector has remained as one of the leading
?
employment providing sectors in the country and more than
                                                                                             composition of
16% of the total estimated employment in the country was
contributed by this sector. The sector is poised to contribute the
largest employment share in the next couple of quarters also.
                                                                                             new hires
? by Investment Commission of India suggests that the
A report
healthcare sector has experienced a growth of more than 12%
per annum in the last 4 years and this is driven by factors such as
rising income levels of Indian households, increasing penetration
of health insurance, phenomenal increase in incidence of                                                2.9%

lifestyle-related diseases as well as enhanced healthcare                                      30.8%
awareness amongst substantial proportion of population in urban                                                                 29.7%
India.
Indian healthcare sector, presently a US$ 36 billion industry, is
?
                                                                                                                                        by Experience
expected to grow upto US$ 280 billion by 2022.
                                                                                                                                              < 1 Year
? a boom in the diagnostic industries along with the in-
There is
growth in hospital infrastructure in the country. New investors                                                                               1 - 4 Years

including the MNCs are playing a key role in increasing the                                                                                   5 - 10 years
employment base in the sector, through expanding their                                                                                        > 10 Years
presence in Tier I and Tier II cities.
Many companies have started providing healthcare benefits to
?
their employees and this is one contributing factor for the
increase in demand for health services significantly.
New hiring involves both blue and white collar workers in the
?
healthcare sector. Apart from the core activities related to                                           36.6%

medical treatments, substantial hiring has taken place in
functional areas of administration/accounts etc. as well as
customer services.

                                                                                                       5.1%


                                                                                             40.6%
                                                                                                                               20.6%

                                                                                                                                        by Function

                                                                                                                                              Admin / Accountants etc

                                                                                                                                              Core Activities including
                                                                                                                                              Marketing and BD

                                                                                                                                              Customer Service

                                                                                                                                              Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                               33.6%




                                                                                                                       15.8%

                                                                                             36.8%

                                                                                                                                           by Hiring Sources


                               17.7%                        17.9%                                                                             Campus

                                                                                                                                              HR Agency
                       January - June 2011            July - September 2011                                                                   Referrals

                                                                                                                                              Social Media

                                                                                                                                              Others


       Estimated Employment               Estimated Employment        Estimated Employment                                         20.6%
         December 2010                          June 2011              September 2011
                                                                                               6.1%
            3,377,700                          3,492,700                 3,556,500
                                                                                                         20.6%

Note: Employment numbers are given as round figures
Hospitality

Between January and June 2011, the
Hospitality sector has added 94,300
jobs and is expected to add another
54,400 jobs between July and
September 2011.
Hospitality sector was the second largest in terms of employment
?
generation during the first two quarters of 2011, contributing
                                                                                                composition of
more than 13% of the total employment generation in the
country.
This is one of the booming sectors, which has been boosted by
?
                                                                                                new hires
increase in tourism activities, both domestic and international.
The foreign tourist arrivals have grown significantly since last
quarters of fiscal year 2010-11. The year on year growth on
foreign tourist arrivals were 8.2%, 11.1% during the third and
fourth quarters of 2010-11 and 10.6% during April-May 2011-                                                  1.6%
12.                                                                                                 40.4%
? air passenger traffic, including domestic and
The total                                                                                                                       26.7%
international, was 26.99 million during April –May of the current
year which reflects a growth rate of 14.0%. The share of travel
                                                                                                                                         by Experience
sector in India’s services exports has gone up to 12.7% during
the first quarter of 2011 from 11.5% in last quarter of the 2010                                                                             < 1 Year

recording a growth of 32.8%.                                                                                                                 1 - 4 Years

? of international brands in the Indian hospitality market is
Launch                                                                                                                                       5 - 10 years
another reason that has helped this sector to maintain the                                                                                   > 10 Years
buoyant sentiment.
In the last two quarters, most opportunities were for experienced
?
persons, which shows a strong intra-industry mobility.


                                                                                                            31.3%




                                                                                                            3.3%


                                                                                                42.9%
                                                                                                                            23.5%

                                                                                                                                         by Function

                                                                                                                                            Admin / Accountants etc

                                                                                                                                            Core Activities including
                                                                                                                                            Marketing and BD

                                                                                                                                            Customer Service

                                                                                                                                            Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                                30.3%




                                                                                                    11.6%               15.5%



                                                                                             5.6%                                        by Hiring Sources


                               15.3%                        15.1%                                                                           Campus

                                                                                                                                            HR Agency
                       January - June 2011            July - September 2011                                                                 Referrals

                                                                                                                                            Social Media

                                                                                                                                            Others


       Estimated Employment               Estimated Employment        Estimated Employment
         December 2010                          June 2011              September 2011                                            27.4%

                                                                                                    38.0%
            6,111,300                          6,205,600                 6,260,000

Note: Employment numbers are given as round figures
IT & ITeS
Information Technology and
Information Technology Enabled Services


Between January and June 2011, the
Information Technology &
Information Technology Enabled
Services sector has added 91,100
jobs and is expected to add another                                                                 composition of
55,500 jobs between July and
September 2011.
                                                                                                    new hires
As expected in the last quarterly employment survey, IT & ITeS
?
sector has remained a major employment provider during the                                                      3.8%
first two quarters of 2011. The responses from the companies
also suggest that the sector will keep growing in 2011.                                               35.3%

? sector in India has witnessed a turnaround in 2010-11 by
IT&ITeS                                                                                                                                 20.8%
posting a double-digit growth and continues at the same pace.
This is largely due to the renewed investments by the global                                                                                    by Experience
companies across verticals such as IT infrastructure, software and
                                                                                                                                                    < 1 Year
back office services.
                                                                                                                                                    1 - 4 Years
? Direct Investment inflow in this sector has increased by
Foreign
                                                                                                                                                    5 - 10 years
8.0% (in US$ terms) and the share of the sector during April
2011 was 3.1% (in US$ terms), which was higher than that in                                                                                         > 10 Years

sectors like telecommunication and housing & real estate sectors.
The share of software services in India’s services exports increased
?
to 47.9%during first quarter of 2011 compared to 40.7% during
last quarter of 2010. The growth rate of the same was 19%
during first quarter of 2011.
                                                                                                               40.1%
? hires in the first two quarters were a mix of experienced
The new
and relatively non-experienced manpower. More than 50% of
the recruitment was for the core functions while the same for
customer services was also higher than 40%.
Composition of hiring sources shows the usage of good mix of
?
                                                                                                                0.8%           4.4%
various channels.
? the industry is generating substantial employment,
Though
                                                                                                    42.5%
experts suggest a cautious optimism for 2011. This is due to the
slow recovery of the US economy and also due to the economic
uncertainty in Europe.                                                                                                                          by Function

                                                                                                                                                   Admin / Accountants etc

                                                                                                                                                   Core Activities including
                                                                                                                                                   Marketing and BD

                                                                                                                                                   Customer Service

                                                                                                                                                   Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                                       52.3%




                                                                                                                                18.4%
                                                                                                       14.5%



                                                                                                                                                by Hiring Sources

                                                                                             8.6%
                               17.9%                        18.2%                                                                                  Campus

                                                                                                                                                   HR Agency
                       January - June 2011            July - September 2011                                                                        Referrals

                                                                                                                                                   Social Media

                                                                                                                                                   Others


       Estimated Employment               Estimated Employment        Estimated Employment
         December 2010                          June 2011              September 2011                                                   33.0%

            1,918,900                          2,010,000                 2,065,500                          25.7%

Note: Employment numbers are given as round figures
Manufacturing
Machineries and Equipment


Between January and June 2011, the
Manufacturing - Machinery and
Equipment sector has added 29,800
jobs and is expected to add another
14,500 jobs between July and
September 2011.                                                                                     composition of
The growth in the manufacturing sector has dipped substantially
?
                                                                                                    new hires
to 6.0% during April-May 2011-12 compared to 25.2% in the
same period of the year 2010-11, which reflects the reducing
investment in the economy.
The latest IIP at the sub-sector level shows that the motor
?
vehicles, trailers & semi-trailers, other transport equipment,                                              7.3%
office, accounting & computing machineries are the important
ones.                                                                                                                        14.5%
                                                                                                28.0%
? the sub-sectors that performed poorly, electrical
Amongst
machinery & apparatus and machinery and equipment (not
elsewhere classified) recorded negative output growth of -1.6%                                                                          by Experience
and -2.8% respectively.                                                                                                                     < 1 Year

Sub-sector like Radio, TV and Communication Equipment &
?                                                                                                                                           1 - 4 Years
Apparatus have recorded an output growth of only 1.4% year-                                                                                 5 - 10 years
on-year when compared to 12.8% during 2010-11.                                                                                              > 10 Years
? in general it is expected that manufacturing will perform
Though
better during the second half of the year, the mood of the
industry was not buoyant, which is clearly reflected through a
marginally lower expected employment generation during July to
September 2011 and lower expected salary hikes, as reported by
the sector players who were covered in the survey.                                                           50.1%




                                                                                                              1.8%

                                                                                                    10.1%                   15.1%



                                                                                                                                        by Function

                                                                                                                                           Admin / Accountants etc

                                                                                                                                           Core Activities including
                                                                                                                                           Marketing and BD

                                                                                                                                           Customer Service

                                                                                                                                           Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                             73.5%




                                                                                                                     8.3%
                                                                                                    18.8%



                                                                                                                                        by Hiring Sources

                                                                                             5.9%
                               14.6%                        14.0%                                                                          Campus

                                                                                                                                           HR Agency
                       January - June 2011            July - September 2011                                                                Referrals

                                                                                                                                           Social Media

                                                                                                                                           Others


       Estimated Employment               Estimated Employment        Estimated Employment
         December 2010                          June 2011              September 2011                                           34.9%

                                                                                                    32.0%
            1,134,800                           1,164,600                1,179,100

Note: Employment numbers are given as round figures
Manufacturing
Non-machinery Manufacturing


Between January and June 2011, the
Manufacturing - Non-Machinery
Products sector has added 81,100
jobs and is expected to add another
36,100 jobs between July and
September 2011.                                                                                composition of
Employment generation by non-machinery manufacturing was
?
                                                                                               new hires
lower than the expectations suggested by the sector players
during the last survey. The expectation for the next quarter is also
in similar lines.
Intermediate goods and consumer goods have suffered a setback
?
during the initial months of 2011, as per use-based classification.                                         4.7%
The output of Consumer Durables declined to 4.5% during April-
                                                                                                36.5%
May 2011, when compared to 19.0% during the same period of
                                                                                                                                    15.9%
2010-11. Intermediate goods also declined to 2.7% in April-May
2011, from 11.8% during the same period of the last fiscal.
? the sub-sectors, the worst affected were Textile (-
Amongst                                                                                                                                     by Experience
5.0%), Wood and Wood products (-10.6%), Rubber and Plastic                                                                                      < 1 Year
products (-3.6%), Other Non-metallic Minerals (-0.7%) and                                                                                       1 - 4 Years
Furniture (-4.7%). Negative IIP growth recorded by all these                                                                                    5 - 10 years
sectors during April-May2011 explains the lower level of
                                                                                                                                                > 10 Years
employment generation in the sector.
? some of the sub-sectors have performed well to
However,
maintain the momentum of employment, which has in-turn
helped the sector not to allow drastic fall in employment
generation.
? a reduction in demand coupled with high input prices
However,                                                                                                    42.9%
due to continuing high inflation, has led to dampening of
momentum, which is reflected in lower employment generation
and lower expected salary hike for lateral job changes in the
sector.
                                                                                                            2.8%            12.9%

                                                                                              10.4%


                                                                                                                                            by Function

                                                                                                                                               Admin / Accountants etc

                                                                                                                                               Core Activities including
                                                                                                                                               Marketing and BD

                                                                                                                                               Customer Service

                                                                                                                                               Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                                    73.9%




                                                                                                                            5.2%
                                                                                                    32.3%

                                                                                                                                    25.3%
                                                                                                                                            by Hiring Sources


                               15.0%                        14.3%                                                                              Campus

                                                                                                                                               HR Agency
                       January - June 2011            July - September 2011                                                                    Referrals

                                                                                                                                               Social Media

                                                                                                                                               Others


       Estimated Employment               Estimated Employment        Estimated Employment
         December 2010                          June 2011              September 2011        4.7%


            4,508,000                          4,589,100                 4,625,300                     32.6%

Note: Employment numbers are given as round figures
Media and Entertainment

Between January and June 2011, the
Media and Entertainment sector has
added 31,800 jobs and is expected
to add another 15,300 jobs between
July and September 2011.
?and entertainment sector has performed moderately
Media
during the first two quarters of 2011. According to the sector
                                                                                                composition of
players, the sector is expected to perform better during the 3rd
quarter of the year. According to the latest FICCI-KPMG report,
the industry is expected to grow by 13% during the year 2011.
                                                                                                new hires
? subscriber base has reached 28 million during end of
The DTH
2010. The advertising industry played an important role in the
growth of the television industry and the advertising spends grew
by 17% to Rs. 266 billion. This accounted for 41% of overall
spend in media and entertainment sector.                                                                       0.4%

Radio segment has also grown quickly and with increase in scale
?
                                                                                                                              24.8%
and expected changes in regulation, the segment is further                                    43.1%
expected to grow at 20% per annum.
Large number of production houses catering to film, television,
?                                                                                                                                        by Experience
advertisement industries are an important source of employment
generation in the media and entertainment sector.                                                                                            < 1 Year

                                                                                                                                             1 - 4 Years
More than 55% of hiring in last two quarters have taken place
?
mainly through referrals, which is a unique characteristic of this                                                                           5 - 10 years

sector.                                                                                                                                      > 10 Years




                                                                                                                      31.6%




                                                                                                            4.2%

                                                                                                                             21.1%
                                                                                               26.8%


                                                                                                                                         by Function

                                                                                                                                            Admin / Accountants etc

                                                                                                                                            Core Activities including
                                                                                                                                            Marketing and BD

                                                                                                                                            Customer Service

                                                                                                                                            Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                            47.9%




                                                                                                                      5.9%
                                                                                                    14.7%


                                                                                                                                 20.8%
                                                                                             3.5%                                        by Hiring Sources


                               17.5%                        17.6%                                                                           Campus

                                                                                                                                            HR Agency
                       January - June 2011            July - September 2011                                                                 Referrals

                                                                                                                                            Social Media

                                                                                                                                            Others


       Estimated Employment               Estimated Employment        Estimated Employment
         December 2010                          June 2011              September 2011
                                                                                                    56.0%
            1,356,300                          1,413,000                 1,444,300

Note: Employment numbers are given as round figures
Pharma

Between January and June 2011, the
Pharma sector has added 24,600
jobs and is expected to add another
11,300 jobs between July and
September 2011.
? sector has performed well during January and June, as
Pharma
per the predictions in the last survey. It is expected to grow in
                                                                                                    composition of
same rate also during the third quarter.
?of the Chemical and Chemical Products sector, of which
The IIP
Pharma is one of the most important components, has grown by
                                                                                                    new hires
5.7% during April-May 2011.
The performance of the Indian Pharma Industry remained
?
exceptionally well and the industry has reached a level of Rs.
1,17,000 crore in 2010.
                                                                                                                2.2%
? experts suggest, that almost a third of total R&D
Industry
investment by the global Pharma industry,which is estimated at                                        47.1%
US$ 40-50 billion, could be made in India over the next 10 years.                                                                          17.0%
? Research in India is growing at an annual rate of around
Contract
20% to 25%. Clinical trials represent 65% of this market and                                                                                       by Experience
new drug discovery makes up the remaining 35%.
                                                                                                                                                       < 1 Year
? global companies are also tying up with leading Indian
Several                                                                                                                                                1 - 4 Years
research institutes like IICT, Hyderabad, ICMR, Indian Institute of
                                                                                                                                                       5 - 10 years
Sciences, Bangalore and National Chemical Laboratories, Pune.
Apart from that, some Pharma MNCs are also utilising India’s                                                                                           > 10 Years

potential drug discovery base, through opening independent
R&D labs in India or partnering with independent Indian drugs
discovery services companies and research institutes. These
initiatives play a positive role in employment generation by the
industry.                                                                                                                              33.7%

? the new hires were recruited for the core activities and
Most of
were generally from relatively higher experience brackets.



                                                                                                                4.5%           11.9%

                                                                                                    12.6%


                                                                                                                                                   by Function

                                                                                                                                                      Admin / Accountants etc

                                                                                                                                                      Core Activities including
                                                                                                                                                      Marketing and BD

                                                                                                                                                      Customer Service

                                                                                                                                                      Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                                       71.0%




                                                                                                                                11.0%
                                                                                                       26.2%



                                                                                                                                                   by Hiring Sources


                               15.2%                        15.0%                                                                                     Campus

                                                                                                                                                      HR Agency
                       January - June 2011            July - September 2011                  6.5%                                                     Referrals

                                                                                                                                                      Social Media

                                                                                                                                                      Others


       Estimated Employment               Estimated Employment        Estimated Employment
         December 2010                          June 2011              September 2011                                                      34.2%

             284,400                             309,000                   320,300                          22.2%

Note: Employment numbers are given as round figures
Real Estate and
Construction

Between January and June 2011, the
Real Estate and Construction sector
has added 75,000 jobs and is
expected to add another 29,600 jobs
between July and September 2011.                                                                     composition of
This sector has performed in the expected line of moderate
?
growth momentum during the first two quarters as suggested in
                                                                                                     new hires
the last survey. The next quarter performance is expected to be
slightly lower than the first two quarters of 2011.
Major factors impeding the high growth path of the real estate
?
market are inflation and increase in lending rates by the
government. This has caused a higher cost of credit, both for the                                                1.5%
Developers as well as Buyers. The easing up of inflation during                                                            10.7%
the latter part of the year may help in increasing the demand in
the market.                                                                                         49.2%
? the Construction sector remained buoyant during the
However,
first half of 2011. The year-on-year GDP growth of construction                                                                            by Experience
sector was at 8.2%. The share of construction sector in the                                                                                    < 1 Year
country’s Services GDP, remain almost at the same level posting a                                                                              1 - 4 Years
share of 11.9% during first three months of the year.
                                                                                                                                               5 - 10 years
The recent controversy regarding the land acquisition deals in the
?
                                                                                                                                               > 10 Years
Delhi-NCR region has hit the real estate market. However,
industry expects that this would be resolved soon and the
booming market will continue in the coming months.
The investment in the Construction sector, led by real estate and
?
infrastructure development, is expected to continue in future and
                                                                                                                                38.6%
this sector will continue as one of the largest employment
generating sector in the country in the coming years.




                                                                                                                3.4%

                                                                                                        7.3%                   11.5%



                                                                                                                                           by Function

                                                                                                                                              Admin / Accountants etc

                                                                                                                                              Core Activities including
                                                                                                                                              Marketing and BD

                                                                                                                                              Customer Service

                                                                                                                                              Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                                77.8%




                                                                                                                        6.5%
                                                                                                        24.9%



                                                                                                                                           by Hiring Sources


                               14.9%                        14.1%                                                                             Campus

                                                                                                                                              HR Agency
                       January - June 2011            July - September 2011                  4.3%                                             Referrals

                                                                                                                                              Social Media

                                                                                                                                              Others


       Estimated Employment               Estimated Employment        Estimated Employment
         December 2010                          June 2011              September 2011                                              33.9%

                                                                                                       30.4%
              859,300                            934,300                   963,900

Note: Employment numbers are given as round figures
Trade including
Consumer Retail Services

Between January and June 2011, the
Trade including Consumer, Retail
and Services sector has added
18,700 jobs and is expected to add
another 10,800 jobs between July
and September 2011.
                                                                                                    composition of
                                                                                                    new hires
? growth momentum was experienced in the sector during
A stable
the first two quarters of 2011. The industry professionals expect
a similar growth path to continue in the third quarter also.
The growth in the sector is mainly driven by the significant
?
activities on the international front. International trade, both                                                0.5%
export and import, have increased substantially during the first
two quarters.                                                                                       33.2%
                                                                                                                                    25.0%
The global GDP posted an impressive growth of 5.1% in 2010
?
and is expected to grow at 4.3% in 2011. India’s merchandise
export has grown by 37.5% in 2010-11, and the growth during                                                                                    by Experience
April-May 2011 was at 45.3% (in US$ terms). The categories that                                                                                    < 1 Year
performed well in export market were plastic and linoleum
                                                                                                                                                   1 - 4 Years
products, metal manufactures, transport equipment, iron and
                                                                                                                                                   5 - 10 years
steel, textile products and petroleum products.
                                                                                                                                                   > 10 Years
?growth was at 21.6% in 2010-11 and at 33.3% during
Import
April-May 2011. The major products imported were metallic ores,
capital goods and gems & jewelleries.
Continuous high inflation rate and increase in petroleum prices
?
are a concern for the sector. However, the industry reported a
stable demand in the domestic retail market, which reflects, that                                           41.3%
the inflation and price factor did not make much dent in the
retail market.
The industry is expecting a higher demand in the next quarter,
?
due to peak festival season and decline in the inflation of food
articles.
                                                                                                             1.7%
Investment by the existing and the new companies in formal retail
?
                                                                                                    10.4%                      19.1%
format and the fierce competition among players, is also
working as one of the major factors behind the increasing
employment opportunities in the sector.
                                                                                                                                               by Function

                                                                                                                                                  Admin / Accountants etc

                                                                                                                                                  Core Activities including
                                                                                                                                                  Marketing and BD

                                                                                                                                                  Customer Service

                                                                                                                                                  Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                                    68.8%




                                                                                                                            11.5%
                                                                                                    20.9%



                                                                                                                                               by Hiring Sources


                               16.5%                        16.4%                            3.0%
                                                                                                                                                  Campus

                                                                                                                                                  HR Agency
                       January - June 2011            July - September 2011                                                                       Referrals

                                                                                                                                                  Social Media

                                                                                                                                                  Others


       Estimated Employment               Estimated Employment        Estimated Employment
         December 2010                          June 2011              September 2011                                                  26.3%

             652,800                             671,500                   682,300                      37.6%

Note: Employment numbers are given as round figures
Transport, Storage and
Communication

Between January and June 2011, the
Transport, Storage and
Communication sector has added
26,900 jobs and is expected to add
another 14,200 jobs between July
and September 2011.
                                                                                                    composition of
Communication sector remained as the most impressive sub-
?
                                                                                                    new hires
component, which showed continuous strong performance over
the quarters. However, the addition of fixed and wireless
connections have declined by 13% during April-May 2011.
It is expected that with 3G services in place and increasing
?
                                                                                                             5.9%
demand for mobile telephone and broadband services,
communication sector will remain a star performer in the coming                                                               19.0%
months.                                                                                         27.7%
? in travel, growth in railway freight traffic and production
Increase
of commercial vehicles are boosting the growth in the sector.                                                                            by Experience
Port sector is experiencing slower growth. This is largely due to
?                                                                                                                                            < 1 Year
the ban of iron ore export. The iron ore cargo handled declined
                                                                                                                                             1 - 4 Years
to 87.3 million tonnes in 2010-11 when compared to 100 million
                                                                                                                                             5 - 10 years
tonnes in 2009-10.
                                                                                                                                             > 10 Years
Dampened industrial activities, coupled with steep hike in
?
petroleum prices, played adverse role in employment generation
by the sector. These factors are affecting profitability of the
companies, resulting in lower level of recruitment among
companies. The recent decline in truck rentals has affected the
volume growth. The sector players are cautious about the future
                                                                                                              47.3%
outlook.




                                                                                                               2.5%

                                                                                                    16.9%                    26.0%



                                                                                                                                         by Function

                                                                                                                                            Admin / Accountants etc

                                                                                                                                            Core Activities including
                                                                                                                                            Marketing and BD

                                                                                                                                            Customer Service

                                                                                                                                            Senior Management
             Increase in Salary - Lateral Job Shift




                                                                                                              54.7%




                                                                                                                      7.5%

                                                                                                    23.0%
                                                                                                                                 24.1%
                                                                                                                                         by Hiring Sources


                               15.2%                        14.1%                                                                           Campus

                                                                                                                                            HR Agency
                                                                                             5.5%
                       January - June 2011            July - September 2011                                                                 Referrals

                                                                                                                                            Social Media

                                                                                                                                            Others


       Estimated Employment               Estimated Employment        Estimated Employment
         December 2010                          June 2011              September 2011
                                                                                                     39.4%
            2,682,553                          2,709,550                 2,723,700

Note: Employment numbers are given as round figures
city-wise employment outlook
Ahmedabad                                                                      Hyderabad has experienced a marginally lower growth than
About 5,100 new jobs are expected to be generated in Ahmedabad                 expectataions. similar levels of growth is expected in the next
during first three quarters of 2011. The employment growth is                  quarter too. About 3,500 jobs are expected to be added between
spread equally across the quarters. The sectors that were major                July and spetember this year. The key contributors to the
contributors in terms of employment generation are IT&ITES,                    employment generation were BFSI, IT & ITES, Pharma, Healthcare
Pharma, Trading including CRS and Energy.                                      and Hospitality, Energy & Infrastructure.

Bangalore                                                                      Kolkata
The momentum of employment growth continued during the first                   Hiring activities were slow (11,700 jobs) during the first two
twoand is spread across the coming quarters. About 5,000 new                   quarters of the year and the industries have not reported any
jobs are expected to be added in the coming quarter. The major                 changes for the next quarter. Around 5,600 news jobs are expected
contributors to employment base were BFSI, Education, Training                 to be created between July and Septemeber 2011. The leading
and Consulting, IT&ITES and Media & Entertainment.                             sectors in terms of employment generation were IT & ITES, Trade
                                                                               including CRS, Transportation, Storage & Communication, Energy
                                                                               and Manufacturing of Machinery and Equipment.
Chennai
Hiring was slightly lower than during the first two quarters of 2011.
                                                                               Mumbai
However, the industries are expecting the next quarter to be                   Mumbai experienced a high growth momentum (53,100 new jobs)
marginally better than the previous two quarters. Around 16,900                during the first two quarters of 2011, though slightly lower than
jobs are expected to be added in the coming quarter. The sectors               what was predicted in our earlier survey in March 2011. However,
that contributed significantly to the employment base were BFSI,               the industries expect a higher level of activity during the next
IT&ITES, Energy, Healthcare and Real Estate & Construction.                    quarter and the city is expected to add 32,300 new jobs between
                                                                               July and September 2011.Though most of sectors have contributed
Delhi & NCR                                                                    significantly to the employment base, the prime contributing sectors
                                                                               during the first two quarters were BFSI, IT & ITES, Energy and
Hiring was buoyant in Delhi & NCR region during the first two                  Hospitality.
quarters of 2011. Similar momentum is expected in the next
quarter too. Although most of the sectors have contributed to the
employment generation in the region, the major ones amongst
                                                                               Pune
those were IT & ITES, Energy, Manufacturing of Machinery and                   The positive hiring activities (6,100 new jobs) continued in Pune
Equipment, Real Estate & Construction, Education, Training &                   during the first phase of 2011. The employment generation was
Consulting. Around 27,900 jobs are expected to be added between                almost in similar lines to the March 2011 estimation and is expected
July and September 2011.                                                       to follow similar trend in the coming quarter. About 3,300 new jobs
                                                                               are expected to be added in the coming quarter. Most of the
Hyderabad                                                                      sectors contributed to the generation of employment base and the
                                                                               significant ones amongst those were BFSI, Media & Entertainment,
                                                                               Non-machinery Manufacturing, Energy and Transport, Storage and
                                                                               Communication.



   January - June 2011     July - September 2011                                                                                                    100000


                   85400                                                                                                                               90000
                                    83700
                   32300            27900
                                                                                                                                                       80000


                                                                                                                                                       70000


                                                                                                                                                       60000

                                                    47700
                                                                                                                                                       50000
                                                    16900

                                                                                                                                                       40000


                                                                                                                                                       30000

                                                                17300        15800                                                                     20000
                                                                 5600                       10700
                                                                              5000                            9400
                                                                                                                               5100
                                                                                             3500             3300                                     10000
                                                                                                                               1700
                                                                                                                                                           0

                   53100           55800            30800        11700       10800           7200             6100         3400

                Mumbai         Delhi & NCR         Chennai      Kolkata     Bangalore      Hyderabad          Pune      Ahmedabad


  Estimated                    Ahmedabad            Bangalore     Chennai     Delhi & NCR           Hyderabad        Kolkata          Mumbai    Pune
  Employment
  December 2010                   46,500            121,600       372,300        586,400             89,300          170,700          655,300   66,600
Indicus Ma Foi Randstad Employment Trends Survey - Wave 2 - 2011
Indicus Ma Foi Randstad Employment Trends Survey - Wave 2 - 2011
Indicus Ma Foi Randstad Employment Trends Survey - Wave 2 - 2011
Indicus Ma Foi Randstad Employment Trends Survey - Wave 2 - 2011
Indicus Ma Foi Randstad Employment Trends Survey - Wave 2 - 2011

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Indicus Ma Foi Randstad Employment Trends Survey - Wave 2 - 2011

  • 1. Ma Foi Randstad Employment Trends Survey Wave 2 - 2011
  • 2. in this report... Indian Economy – Stable but requires renewed investment ? ? Methodology Data and ? of Employment Generation in Different Sectors Estimates ? Financial Services and Insurance Banking, Education, Training and Consultancy ? Energy ? Healthcare ? Hospitality ? Information Technology & Information Technology Enabled Services ? Manufacturing - Machinery and Equipment ? Manufacturing - Non-Machinery Products ? Media and Entertainment ? Pharma ? Real Estate and Construction ? Trade including Consumer, Retail and Services ? Transport, Storage and Communication ? Concluding Remarks ? Appendix ? A1: Expected Increase in Employment in Different Sectors ? A2: Expected Increase in Salary across Different Sectors - Lateral Job Shift ? A3: Composition of New Hires by Experience ? A4: Composition of New Hires by Functional Areas ? A5: Share of Different Hiring Sources for New Hires ? A6: City-wise Expected Employment ? A7: City-wise Expected Increase in Employment and Growth Rate ? A8: City-wise Likely Increase in Salary - Lateral Job Shift ? A9 : City-wise Share of Different Experience Brackets amongst New Hires ? A10: City-wise Share of Different Functional Areas amongst New Hires ? The Ma Foi Randstad Employment Trends Survey (MEtS), conducted by Ma Foi Randstad, India’s No. 1 Integrated HR services company, is a study on the Indian employment trends and opportunities. Started in November 2004, MEtS was conducted once a year, till 2008. Considering the several dynamic shifts in employment, even within a year’s time, MEtS was therefore converted to a quarterly survey from 2010, to capture the changes in employment scenario in India from one quarter to another The prime objective of this employment survey is to understand the employment trends in the organized sector on a quarterly basis. The present survey captures the employment situation in the organized sector for the first two quarters of 2011, i.e., from January to June 2011 and the likely scenario for the third quarter of the year, i.e., from July to September 2011. The study is based on a sample survey conducted for about 690 companies across different sectors of the economy mainly during the month of June 2011. The feedback was gathered from the top HR personnel or top management of the companies who could share valuable insights regarding the current and as well as next quarter scenario about employment related issues. The major focus of the survey is to estimate the changes in employment scenario across sectors and space. The other issues highlighted in the survey are changes in salary for the lateral hiring, recruitments by experience categories and hiring by different functional roles. The report is presented in four sections. The first section (Section A) discusses the recent trends and an overall view of the Indian Economy. This section is followed by Section B that provides insights about the data and methodological aspects of the study. Section C presents a picture of the changing pattern of the employment for different sectors of the economy. A snapshot of the changing scenario for selected cities is also given in this section. The final section (Section D) concludes the study highlighting key issues.
  • 3. Indian Economy stable but requires renewed investment Indian economy is passing through a critical stage. The official Services sector growth in terms of GDP has declined marginally revised Gross Domestic Product (GDP) estimate for the year during both quarter 1 and quarter 2 of the current calendar 2010-11 is now at 8.5%, which is slightly lower than the year. The share of sub-sectors - trade, hotel, transport, estimates provided earlier. High inflation rate reflected through communication, finance, insurance, real estate and business the Wholesale price Index (WPI), still poses as a big threat for services have declined during the first six months of 2011. the economy. The hike in fuel prices effected during May-June However, Services sector is still dominating the growth story of 2011 may lead to further escalation of prices, which might the economy in the country. India’s merchandise exports have prove a dampener for the economic growth sentiment. The posted a robust growth rate of 45.3% during April-May 2011 declining Index of Industrial Production (IIP) also reflects a in US dollar terms. India is now ranked as the 20th top relatively dull growth sentiment in the economy. merchandise exporting country in world export with a share of 1.4%. Slowdown of the economic growth has impacted According to Asian Development Bank’s (ADB) observation, performances of the capital market as well. The net FII inflows combating inflation has become a complex process for the that surged up substantially during the first three quarters of Reserve Bank of India (RBI). The year-on-year change in WPI was the 2010-11, has declined by 79% during the last quarter of 9.1% in May 2011 as compared to 8.7% in April 2011. It was the last fiscal and a further decline to 85% was recorded mostly triggered by surge in the prices of non-food items. Oil during April and May of 2011. However, FDI inflow has shown prices have also increased sharply from US$ 80 per barrel in significant improvement during this period, which can be September 2010 to US$ 114 per barrel in May 2011. Though considered as a positive indicator for the economy. the RBI has adopted a tight monetary policy with higher level lending rate, inflation continues to be the major concern for the Private investment has become one of the key determinants of government. the growth performance of the Indian economy. The gross capital formation slowed down significantly to 3.7% during the Agriculture sector registered a little lower growth rate in the fourth quarter of the last fiscal year primarily due to reduced second quarter of 2011 compared to the previous one. The private investment in the economy. Government should take up Indian meteorological department has revised its forecast all possible measures to increase private investment flow into marginally suggesting the monsoon would be about 95% of the the economy. Apart from this, it is expected that by the end of normal compared to its previous prediction of 98%. This is a the monsoon season, the rainfall will be close to the long term cause for concern for the policy makers, as it has a direct impact average, which will ensure good Kharif as well as Rabi crop on food inflation. However, for most of the food articles, production. The industry is also expected to perform better inflation has relatively eased up during the last few months. It is during the second half of the year. The services sector is poised expected that a near normal monsoon will steer the growth on to maintain the positive momentum for the rest of the months a stronger path in the agriculture sector. of the year. The Central Statistical Organization (CSO) data on Index on Industrial Production (IIP) shows a decline in April-May 2011 as compared to the performance during 2010-11. The IIP recorded was at 5.7% during April-May 2011 as compared to 10.8% during the corresponding period of 2010. A use-based break-up suggests that capital goods production declined substantially during April-May 2011. This indicates sluggish investment activities in the economy. The IIP for Intermediate and consumer durables have also declined considerably during this period. However, the consumer non- durables sector has performed well and the basic goods production has also increased marginally. This industry sector is expected to perform better in the coming months of the year.
  • 4. data sources The study has used both primary and secondary data to arrive at different estimates. Secondary data from various sources have been used for this study. Historical data on the manufacturing sector has been culled out from various surveys of the Annual Survey of Industries (ASI) and publications of the Central Statistical Organization (CSO). Apart from these sources, the other data sources used for the study are several surveys of the National Sample Survey Organization (NSSO), Labour Statistics of India and Statistical outline of India. The above sources have the advantage of almost universal coverage of the organized sector within their specific domains. However, data from most of these secondary sources are not up-to-date. Therefore the estimation procedure is used to address this problem, by using up-to-date figures on sectoral GDP and IIP. Once estimates of base sector level employment were obtained, the data captured through primary survey of about 692 firms across sectors were used to arrive at estimates on different parameters. Rigorous estimation procedures were used, along with the primary survey data of the companies, to estimate parameters for the first two quarters of the year 2011 and expectations regarding the third quarter of 2011. Coverage of Primary Survey Sl. No. Sector No. of companies covered 1 Banking, Financial Services and Insurance 51 2 Education, Training and Consultancy 51 3 Energy 42 4 Healthcare 48 5 Hospitality 51 6 Information Technology & Information Technology Enabled Services 61 7 Manufacturing - Machinery and Equipment 71 8 Manufacturing - Non-Machinery Products 83 9 Media and Entertainment 36 10 Pharma 43 11 Real Estate and Construction 58 12 Trade including Consumer, Retail and Services 53 13 Transport, Storage and Communication 44
  • 5. The sentiment is marginally dampened for a few sectors in estimates of the last few months. However, the overall employment scenario is not affected much adversely due to this. The employment optimism that was prevalent at the beginning of the year 2010 has now weakened marginally. Continuing inflation, surging prices of raw materials and intermediate industrial generation in products, several political bumps remain as a cause of concern for entrepreneurs. The intra-sectoral movement of skilled workforce continued. The change in employment different sectors across sectors is given in the following table. The employment scenario at a certain point in time is a reflection of activities at many different fronts for a considerable time period. This section has the estimated employment numbers for first two quarters of the year, as well as the expectations for the third quarter. The study also identified key economic and political issues that might have an impact on the emerging trends in employment scenario directly or indirectly. Expected Employment Increase in Different Sectors Expected Employment Increase in Employment Per cent increase Sectors increase in January - June July - September January - June July - September December Employees 2011 2011 2011 2011 2010 2011 Estimated Expected Estimated Expected Banking, Financial Services and Insurance 907,960 80,700 31,800 15,300 3.50 1.68 Education, Training and Consultancy 9,794,024 107,500 45,200 24,500 0.46 0.25 Energy 895,502 24,900 14,600 7,900 1.63 0.88 Healthcare 3,377,657 248,500 115,000 63,800 3.40 1.89 Hospitality 6,111,304 218,200 94,300 54,400 1.54 0.89 Information Technology & Information Technology Enabled Services 1,918,865 183,000 91,100 55,500 4.75 2.89 Manufacturing - Machinery and Equipment 1,134,788 68,400 29,800 14,500 2.63 1.28 Manufacturing - Non-Machinery Products 4,507,967 223,400 81,100 36,100 1.80 0.80 Media and Entertainment 1,356,296 126,100 56,700 31,300 4.18 2.31 Pharma 284,351 49,400 24,600 11,300 8.65 3.97 Real Estate and Construction 859,342 144,700 75,000 29,600 8.73 3.44 Trade including Consumer, Retail and Services 652,786 38,600 18,700 10,800 2.86 1.65 Transport, Storage and Communication 2,682,553 93,300 26,900 14,200 1.00 0.53
  • 6. Banking, Financial Services and Insurance Between January and June 2011, the BFSI sector has added 31,800 jobs and is expected to add another 15,300 jobs between July and September 2011. composition of Aggregate deposits, one of the leading indicators of banking ? sector performance, registered a higher year-on-year growth of new hires 18.1%during April to June 2011. This was 15.8% during January to March 2011 and was hovering around 14.5% during first 3 quarters of the fiscal 2010-11. Continuous increase in aggregate deposit is a positive indicator for the banking and financial sector. However, it is still at a substantially lower level than the pre-crisis 1.7% period, during which it was around 25%. 20.0% ? contrary, year-on-year growth of bank credit to On the commercial sector, which is a reflection of the intensity of the 27.1% economic activities, dipped to 18% during April to June 2011. This was 27.2% and 20.6% during quarter 3 and quarter 4 of by Experience 2010-11.Substantial reduction in this indicator is a cause for < 1 Year concern, for the companies in the banking and financial sector. 1 - 4 Years This has led to a cautious movement in the sector in terms of employment generation. 5 - 10 years Continuous increase in Inflation rate has also played a negative ? > 10 Years role for the sector, since the government had to revise all policy rates upwards, to combat inflation. However, the measures like interest rate hikes may not be enough to contain inflation to a moderate level and drive the economy on a faster growth pace. The performance of the Insurance sector was not up to the ? 51.2% expectation, especially in last two quarters. Business was affected due to lower demand for the products. According to industry professionals, people are more inclined to buy traditional insurance products than investment products and this is affecting the profitability. The companies are mostly looking for experienced professionals to be recruited. 2.4% Recruitment of experienced persons also reflected in relatively ? higher salary increase in case of lateral job shifts within the 36.2% 18.2% sector. by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 43.2% 11.0% 24.0% by Hiring Sources 15.9% 15.0% Campus HR Agency January - June 2011 July - September 2011 Referrals Social Media Others 7.5% Estimated Employment Estimated Employment Estimated Employment December 2010 June 2011 September 2011 30.9% 908,000 939,800 955,100 26.5% Note: Employment numbers are given as round figures
  • 7. Education, Training and Consulting Between January and June 2011, the Education, Training and Consultancy sector has added 45,200 jobs and is expected to add another 24,500 jobs between July and September 2011. composition of Education sector has remained as one of the significant ? contributors to the employment base of the country during the new hires first two quarters of 2011. The sector reported a slightly higher employment generation during the third quarter of the year in comparison to the average of the first two quarters. ? up of large number of private institutions for education in Setting management, technology, medicine and other similar disciplines 5.9% has resulted in increased demand for manpower in this sector. 25.7% Rising awareness for primary education among people has ? 25.7% boosted the growth of privately owned pre-schools. This is expected to gather further momentum, considering that the population of children between 2 to six years in the country is by Experience between 10 and 12 crores. < 1 Year ? by the National Knowledge Commission suggests that A report 1 - 4 Years by 2020, India will require about 1500 universities and clusters of 5 - 10 years colleges to cater the growing student population. This shows that > 10 Years this sector will remain as one of the most important employment generating sector in the country. ?70% of the recruitments were within the experience About bracket of less than 5 years and led by the recruitments for core activities including business development related jobs. This further reflects the growth of this sector. 42.7% This is also one of the sectors, which has shown substantial ? recruitment through referrals and other sources including advertisements for recruitment. 5.1% 16.3% 17.5% by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 61.1% 8.1% 30.6% by Hiring Sources 16.0% 15.0% Campus HR Agency January - June 2011 July - September 2011 Referrals Social Media Others Estimated Employment Estimated Employment Estimated Employment 2.8% 27.1% December 2010 June 2011 September 2011 9,794,000 9,839,200 9,863,700 31.6% Note: Employment numbers are given as round figures
  • 8. Energy Between January and June 2011, the Energy sector has added 14,600 jobs and is expected to add another 7,900 jobs between July and September 2011. ? sector gained gradual momentum during the last quarter Energy of 2010 and has remained almost stable between January and composition of June 2011. This momentum is expected to continue during the third quarter of the year too. ?for electricity has grown steadily from the third quarter of The IIP new hires 2010 and has posted an impressive 10.3% year-on-year growth during May 2011. Indian government has set a modest target of adding ? approximately 78,000 MW of installed generation capacity by 3.2% 2012, which suggests that during the coming months this sector would be adding substantial number of jobs and contributing 38.3% positively for the economy. 15.8% The Government of India, under its programme of Jawaharlal ? Nehru Solar Mission, plans to generate 1,000 MW of power from by Experience solar energy by 2013. Upto 20,000 MW grid-based solar powers and 2,000 MW of off-grid solar power is also expected to be < 1 Year generated by the end of the final phase of the mission in 2020. 1 - 4 Years Implementation of these schemes will result in generating 5 - 10 years substantial number of jobs. > 10 Years ? part of the employment generation in this sector is A large characterized by the increase in contractual and outsourced manpower. ? proportion of the manpower recruited during this period A large is for production and other core functions. 42.7% ? the first six months of 2011, major recruitments were in During the group of experienced manpower. The recruitment of the lesser experienced professionals was mostly for the administration, accounts, front office related functions. 5.8% 16.0% 17.6% by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 60.6% 13.3% 27.9% by Hiring Sources 16.5% 16.3% Campus HR Agency January - June 2011 July - September 2011 Referrals Social Media Others 7.1% Estimated Employment Estimated Employment Estimated Employment December 2010 June 2011 September 2011 27.0% 895,500 910,100 918,000 24.6% Note: Employment numbers are given as round figures
  • 9. Healthcare Between January and June 2011, the Healthcare sector has added 115,000 jobs and is expected to add another 63,800 jobs between July and September 2011. Healthcare sector has remained as one of the leading ? employment providing sectors in the country and more than composition of 16% of the total estimated employment in the country was contributed by this sector. The sector is poised to contribute the largest employment share in the next couple of quarters also. new hires ? by Investment Commission of India suggests that the A report healthcare sector has experienced a growth of more than 12% per annum in the last 4 years and this is driven by factors such as rising income levels of Indian households, increasing penetration of health insurance, phenomenal increase in incidence of 2.9% lifestyle-related diseases as well as enhanced healthcare 30.8% awareness amongst substantial proportion of population in urban 29.7% India. Indian healthcare sector, presently a US$ 36 billion industry, is ? by Experience expected to grow upto US$ 280 billion by 2022. < 1 Year ? a boom in the diagnostic industries along with the in- There is growth in hospital infrastructure in the country. New investors 1 - 4 Years including the MNCs are playing a key role in increasing the 5 - 10 years employment base in the sector, through expanding their > 10 Years presence in Tier I and Tier II cities. Many companies have started providing healthcare benefits to ? their employees and this is one contributing factor for the increase in demand for health services significantly. New hiring involves both blue and white collar workers in the ? healthcare sector. Apart from the core activities related to 36.6% medical treatments, substantial hiring has taken place in functional areas of administration/accounts etc. as well as customer services. 5.1% 40.6% 20.6% by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 33.6% 15.8% 36.8% by Hiring Sources 17.7% 17.9% Campus HR Agency January - June 2011 July - September 2011 Referrals Social Media Others Estimated Employment Estimated Employment Estimated Employment 20.6% December 2010 June 2011 September 2011 6.1% 3,377,700 3,492,700 3,556,500 20.6% Note: Employment numbers are given as round figures
  • 10. Hospitality Between January and June 2011, the Hospitality sector has added 94,300 jobs and is expected to add another 54,400 jobs between July and September 2011. Hospitality sector was the second largest in terms of employment ? generation during the first two quarters of 2011, contributing composition of more than 13% of the total employment generation in the country. This is one of the booming sectors, which has been boosted by ? new hires increase in tourism activities, both domestic and international. The foreign tourist arrivals have grown significantly since last quarters of fiscal year 2010-11. The year on year growth on foreign tourist arrivals were 8.2%, 11.1% during the third and fourth quarters of 2010-11 and 10.6% during April-May 2011- 1.6% 12. 40.4% ? air passenger traffic, including domestic and The total 26.7% international, was 26.99 million during April –May of the current year which reflects a growth rate of 14.0%. The share of travel by Experience sector in India’s services exports has gone up to 12.7% during the first quarter of 2011 from 11.5% in last quarter of the 2010 < 1 Year recording a growth of 32.8%. 1 - 4 Years ? of international brands in the Indian hospitality market is Launch 5 - 10 years another reason that has helped this sector to maintain the > 10 Years buoyant sentiment. In the last two quarters, most opportunities were for experienced ? persons, which shows a strong intra-industry mobility. 31.3% 3.3% 42.9% 23.5% by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 30.3% 11.6% 15.5% 5.6% by Hiring Sources 15.3% 15.1% Campus HR Agency January - June 2011 July - September 2011 Referrals Social Media Others Estimated Employment Estimated Employment Estimated Employment December 2010 June 2011 September 2011 27.4% 38.0% 6,111,300 6,205,600 6,260,000 Note: Employment numbers are given as round figures
  • 11. IT & ITeS Information Technology and Information Technology Enabled Services Between January and June 2011, the Information Technology & Information Technology Enabled Services sector has added 91,100 jobs and is expected to add another composition of 55,500 jobs between July and September 2011. new hires As expected in the last quarterly employment survey, IT & ITeS ? sector has remained a major employment provider during the 3.8% first two quarters of 2011. The responses from the companies also suggest that the sector will keep growing in 2011. 35.3% ? sector in India has witnessed a turnaround in 2010-11 by IT&ITeS 20.8% posting a double-digit growth and continues at the same pace. This is largely due to the renewed investments by the global by Experience companies across verticals such as IT infrastructure, software and < 1 Year back office services. 1 - 4 Years ? Direct Investment inflow in this sector has increased by Foreign 5 - 10 years 8.0% (in US$ terms) and the share of the sector during April 2011 was 3.1% (in US$ terms), which was higher than that in > 10 Years sectors like telecommunication and housing & real estate sectors. The share of software services in India’s services exports increased ? to 47.9%during first quarter of 2011 compared to 40.7% during last quarter of 2010. The growth rate of the same was 19% during first quarter of 2011. 40.1% ? hires in the first two quarters were a mix of experienced The new and relatively non-experienced manpower. More than 50% of the recruitment was for the core functions while the same for customer services was also higher than 40%. Composition of hiring sources shows the usage of good mix of ? 0.8% 4.4% various channels. ? the industry is generating substantial employment, Though 42.5% experts suggest a cautious optimism for 2011. This is due to the slow recovery of the US economy and also due to the economic uncertainty in Europe. by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 52.3% 18.4% 14.5% by Hiring Sources 8.6% 17.9% 18.2% Campus HR Agency January - June 2011 July - September 2011 Referrals Social Media Others Estimated Employment Estimated Employment Estimated Employment December 2010 June 2011 September 2011 33.0% 1,918,900 2,010,000 2,065,500 25.7% Note: Employment numbers are given as round figures
  • 12. Manufacturing Machineries and Equipment Between January and June 2011, the Manufacturing - Machinery and Equipment sector has added 29,800 jobs and is expected to add another 14,500 jobs between July and September 2011. composition of The growth in the manufacturing sector has dipped substantially ? new hires to 6.0% during April-May 2011-12 compared to 25.2% in the same period of the year 2010-11, which reflects the reducing investment in the economy. The latest IIP at the sub-sector level shows that the motor ? vehicles, trailers & semi-trailers, other transport equipment, 7.3% office, accounting & computing machineries are the important ones. 14.5% 28.0% ? the sub-sectors that performed poorly, electrical Amongst machinery & apparatus and machinery and equipment (not elsewhere classified) recorded negative output growth of -1.6% by Experience and -2.8% respectively. < 1 Year Sub-sector like Radio, TV and Communication Equipment & ? 1 - 4 Years Apparatus have recorded an output growth of only 1.4% year- 5 - 10 years on-year when compared to 12.8% during 2010-11. > 10 Years ? in general it is expected that manufacturing will perform Though better during the second half of the year, the mood of the industry was not buoyant, which is clearly reflected through a marginally lower expected employment generation during July to September 2011 and lower expected salary hikes, as reported by the sector players who were covered in the survey. 50.1% 1.8% 10.1% 15.1% by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 73.5% 8.3% 18.8% by Hiring Sources 5.9% 14.6% 14.0% Campus HR Agency January - June 2011 July - September 2011 Referrals Social Media Others Estimated Employment Estimated Employment Estimated Employment December 2010 June 2011 September 2011 34.9% 32.0% 1,134,800 1,164,600 1,179,100 Note: Employment numbers are given as round figures
  • 13. Manufacturing Non-machinery Manufacturing Between January and June 2011, the Manufacturing - Non-Machinery Products sector has added 81,100 jobs and is expected to add another 36,100 jobs between July and September 2011. composition of Employment generation by non-machinery manufacturing was ? new hires lower than the expectations suggested by the sector players during the last survey. The expectation for the next quarter is also in similar lines. Intermediate goods and consumer goods have suffered a setback ? during the initial months of 2011, as per use-based classification. 4.7% The output of Consumer Durables declined to 4.5% during April- 36.5% May 2011, when compared to 19.0% during the same period of 15.9% 2010-11. Intermediate goods also declined to 2.7% in April-May 2011, from 11.8% during the same period of the last fiscal. ? the sub-sectors, the worst affected were Textile (- Amongst by Experience 5.0%), Wood and Wood products (-10.6%), Rubber and Plastic < 1 Year products (-3.6%), Other Non-metallic Minerals (-0.7%) and 1 - 4 Years Furniture (-4.7%). Negative IIP growth recorded by all these 5 - 10 years sectors during April-May2011 explains the lower level of > 10 Years employment generation in the sector. ? some of the sub-sectors have performed well to However, maintain the momentum of employment, which has in-turn helped the sector not to allow drastic fall in employment generation. ? a reduction in demand coupled with high input prices However, 42.9% due to continuing high inflation, has led to dampening of momentum, which is reflected in lower employment generation and lower expected salary hike for lateral job changes in the sector. 2.8% 12.9% 10.4% by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 73.9% 5.2% 32.3% 25.3% by Hiring Sources 15.0% 14.3% Campus HR Agency January - June 2011 July - September 2011 Referrals Social Media Others Estimated Employment Estimated Employment Estimated Employment December 2010 June 2011 September 2011 4.7% 4,508,000 4,589,100 4,625,300 32.6% Note: Employment numbers are given as round figures
  • 14. Media and Entertainment Between January and June 2011, the Media and Entertainment sector has added 31,800 jobs and is expected to add another 15,300 jobs between July and September 2011. ?and entertainment sector has performed moderately Media during the first two quarters of 2011. According to the sector composition of players, the sector is expected to perform better during the 3rd quarter of the year. According to the latest FICCI-KPMG report, the industry is expected to grow by 13% during the year 2011. new hires ? subscriber base has reached 28 million during end of The DTH 2010. The advertising industry played an important role in the growth of the television industry and the advertising spends grew by 17% to Rs. 266 billion. This accounted for 41% of overall spend in media and entertainment sector. 0.4% Radio segment has also grown quickly and with increase in scale ? 24.8% and expected changes in regulation, the segment is further 43.1% expected to grow at 20% per annum. Large number of production houses catering to film, television, ? by Experience advertisement industries are an important source of employment generation in the media and entertainment sector. < 1 Year 1 - 4 Years More than 55% of hiring in last two quarters have taken place ? mainly through referrals, which is a unique characteristic of this 5 - 10 years sector. > 10 Years 31.6% 4.2% 21.1% 26.8% by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 47.9% 5.9% 14.7% 20.8% 3.5% by Hiring Sources 17.5% 17.6% Campus HR Agency January - June 2011 July - September 2011 Referrals Social Media Others Estimated Employment Estimated Employment Estimated Employment December 2010 June 2011 September 2011 56.0% 1,356,300 1,413,000 1,444,300 Note: Employment numbers are given as round figures
  • 15. Pharma Between January and June 2011, the Pharma sector has added 24,600 jobs and is expected to add another 11,300 jobs between July and September 2011. ? sector has performed well during January and June, as Pharma per the predictions in the last survey. It is expected to grow in composition of same rate also during the third quarter. ?of the Chemical and Chemical Products sector, of which The IIP Pharma is one of the most important components, has grown by new hires 5.7% during April-May 2011. The performance of the Indian Pharma Industry remained ? exceptionally well and the industry has reached a level of Rs. 1,17,000 crore in 2010. 2.2% ? experts suggest, that almost a third of total R&D Industry investment by the global Pharma industry,which is estimated at 47.1% US$ 40-50 billion, could be made in India over the next 10 years. 17.0% ? Research in India is growing at an annual rate of around Contract 20% to 25%. Clinical trials represent 65% of this market and by Experience new drug discovery makes up the remaining 35%. < 1 Year ? global companies are also tying up with leading Indian Several 1 - 4 Years research institutes like IICT, Hyderabad, ICMR, Indian Institute of 5 - 10 years Sciences, Bangalore and National Chemical Laboratories, Pune. Apart from that, some Pharma MNCs are also utilising India’s > 10 Years potential drug discovery base, through opening independent R&D labs in India or partnering with independent Indian drugs discovery services companies and research institutes. These initiatives play a positive role in employment generation by the industry. 33.7% ? the new hires were recruited for the core activities and Most of were generally from relatively higher experience brackets. 4.5% 11.9% 12.6% by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 71.0% 11.0% 26.2% by Hiring Sources 15.2% 15.0% Campus HR Agency January - June 2011 July - September 2011 6.5% Referrals Social Media Others Estimated Employment Estimated Employment Estimated Employment December 2010 June 2011 September 2011 34.2% 284,400 309,000 320,300 22.2% Note: Employment numbers are given as round figures
  • 16. Real Estate and Construction Between January and June 2011, the Real Estate and Construction sector has added 75,000 jobs and is expected to add another 29,600 jobs between July and September 2011. composition of This sector has performed in the expected line of moderate ? growth momentum during the first two quarters as suggested in new hires the last survey. The next quarter performance is expected to be slightly lower than the first two quarters of 2011. Major factors impeding the high growth path of the real estate ? market are inflation and increase in lending rates by the government. This has caused a higher cost of credit, both for the 1.5% Developers as well as Buyers. The easing up of inflation during 10.7% the latter part of the year may help in increasing the demand in the market. 49.2% ? the Construction sector remained buoyant during the However, first half of 2011. The year-on-year GDP growth of construction by Experience sector was at 8.2%. The share of construction sector in the < 1 Year country’s Services GDP, remain almost at the same level posting a 1 - 4 Years share of 11.9% during first three months of the year. 5 - 10 years The recent controversy regarding the land acquisition deals in the ? > 10 Years Delhi-NCR region has hit the real estate market. However, industry expects that this would be resolved soon and the booming market will continue in the coming months. The investment in the Construction sector, led by real estate and ? infrastructure development, is expected to continue in future and 38.6% this sector will continue as one of the largest employment generating sector in the country in the coming years. 3.4% 7.3% 11.5% by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 77.8% 6.5% 24.9% by Hiring Sources 14.9% 14.1% Campus HR Agency January - June 2011 July - September 2011 4.3% Referrals Social Media Others Estimated Employment Estimated Employment Estimated Employment December 2010 June 2011 September 2011 33.9% 30.4% 859,300 934,300 963,900 Note: Employment numbers are given as round figures
  • 17. Trade including Consumer Retail Services Between January and June 2011, the Trade including Consumer, Retail and Services sector has added 18,700 jobs and is expected to add another 10,800 jobs between July and September 2011. composition of new hires ? growth momentum was experienced in the sector during A stable the first two quarters of 2011. The industry professionals expect a similar growth path to continue in the third quarter also. The growth in the sector is mainly driven by the significant ? activities on the international front. International trade, both 0.5% export and import, have increased substantially during the first two quarters. 33.2% 25.0% The global GDP posted an impressive growth of 5.1% in 2010 ? and is expected to grow at 4.3% in 2011. India’s merchandise export has grown by 37.5% in 2010-11, and the growth during by Experience April-May 2011 was at 45.3% (in US$ terms). The categories that < 1 Year performed well in export market were plastic and linoleum 1 - 4 Years products, metal manufactures, transport equipment, iron and 5 - 10 years steel, textile products and petroleum products. > 10 Years ?growth was at 21.6% in 2010-11 and at 33.3% during Import April-May 2011. The major products imported were metallic ores, capital goods and gems & jewelleries. Continuous high inflation rate and increase in petroleum prices ? are a concern for the sector. However, the industry reported a stable demand in the domestic retail market, which reflects, that 41.3% the inflation and price factor did not make much dent in the retail market. The industry is expecting a higher demand in the next quarter, ? due to peak festival season and decline in the inflation of food articles. 1.7% Investment by the existing and the new companies in formal retail ? 10.4% 19.1% format and the fierce competition among players, is also working as one of the major factors behind the increasing employment opportunities in the sector. by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 68.8% 11.5% 20.9% by Hiring Sources 16.5% 16.4% 3.0% Campus HR Agency January - June 2011 July - September 2011 Referrals Social Media Others Estimated Employment Estimated Employment Estimated Employment December 2010 June 2011 September 2011 26.3% 652,800 671,500 682,300 37.6% Note: Employment numbers are given as round figures
  • 18. Transport, Storage and Communication Between January and June 2011, the Transport, Storage and Communication sector has added 26,900 jobs and is expected to add another 14,200 jobs between July and September 2011. composition of Communication sector remained as the most impressive sub- ? new hires component, which showed continuous strong performance over the quarters. However, the addition of fixed and wireless connections have declined by 13% during April-May 2011. It is expected that with 3G services in place and increasing ? 5.9% demand for mobile telephone and broadband services, communication sector will remain a star performer in the coming 19.0% months. 27.7% ? in travel, growth in railway freight traffic and production Increase of commercial vehicles are boosting the growth in the sector. by Experience Port sector is experiencing slower growth. This is largely due to ? < 1 Year the ban of iron ore export. The iron ore cargo handled declined 1 - 4 Years to 87.3 million tonnes in 2010-11 when compared to 100 million 5 - 10 years tonnes in 2009-10. > 10 Years Dampened industrial activities, coupled with steep hike in ? petroleum prices, played adverse role in employment generation by the sector. These factors are affecting profitability of the companies, resulting in lower level of recruitment among companies. The recent decline in truck rentals has affected the volume growth. The sector players are cautious about the future 47.3% outlook. 2.5% 16.9% 26.0% by Function Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management Increase in Salary - Lateral Job Shift 54.7% 7.5% 23.0% 24.1% by Hiring Sources 15.2% 14.1% Campus HR Agency 5.5% January - June 2011 July - September 2011 Referrals Social Media Others Estimated Employment Estimated Employment Estimated Employment December 2010 June 2011 September 2011 39.4% 2,682,553 2,709,550 2,723,700 Note: Employment numbers are given as round figures
  • 19. city-wise employment outlook Ahmedabad Hyderabad has experienced a marginally lower growth than About 5,100 new jobs are expected to be generated in Ahmedabad expectataions. similar levels of growth is expected in the next during first three quarters of 2011. The employment growth is quarter too. About 3,500 jobs are expected to be added between spread equally across the quarters. The sectors that were major July and spetember this year. The key contributors to the contributors in terms of employment generation are IT&ITES, employment generation were BFSI, IT & ITES, Pharma, Healthcare Pharma, Trading including CRS and Energy. and Hospitality, Energy & Infrastructure. Bangalore Kolkata The momentum of employment growth continued during the first Hiring activities were slow (11,700 jobs) during the first two twoand is spread across the coming quarters. About 5,000 new quarters of the year and the industries have not reported any jobs are expected to be added in the coming quarter. The major changes for the next quarter. Around 5,600 news jobs are expected contributors to employment base were BFSI, Education, Training to be created between July and Septemeber 2011. The leading and Consulting, IT&ITES and Media & Entertainment. sectors in terms of employment generation were IT & ITES, Trade including CRS, Transportation, Storage & Communication, Energy and Manufacturing of Machinery and Equipment. Chennai Hiring was slightly lower than during the first two quarters of 2011. Mumbai However, the industries are expecting the next quarter to be Mumbai experienced a high growth momentum (53,100 new jobs) marginally better than the previous two quarters. Around 16,900 during the first two quarters of 2011, though slightly lower than jobs are expected to be added in the coming quarter. The sectors what was predicted in our earlier survey in March 2011. However, that contributed significantly to the employment base were BFSI, the industries expect a higher level of activity during the next IT&ITES, Energy, Healthcare and Real Estate & Construction. quarter and the city is expected to add 32,300 new jobs between July and September 2011.Though most of sectors have contributed Delhi & NCR significantly to the employment base, the prime contributing sectors during the first two quarters were BFSI, IT & ITES, Energy and Hiring was buoyant in Delhi & NCR region during the first two Hospitality. quarters of 2011. Similar momentum is expected in the next quarter too. Although most of the sectors have contributed to the employment generation in the region, the major ones amongst Pune those were IT & ITES, Energy, Manufacturing of Machinery and The positive hiring activities (6,100 new jobs) continued in Pune Equipment, Real Estate & Construction, Education, Training & during the first phase of 2011. The employment generation was Consulting. Around 27,900 jobs are expected to be added between almost in similar lines to the March 2011 estimation and is expected July and September 2011. to follow similar trend in the coming quarter. About 3,300 new jobs are expected to be added in the coming quarter. Most of the Hyderabad sectors contributed to the generation of employment base and the significant ones amongst those were BFSI, Media & Entertainment, Non-machinery Manufacturing, Energy and Transport, Storage and Communication. January - June 2011 July - September 2011 100000 85400 90000 83700 32300 27900 80000 70000 60000 47700 50000 16900 40000 30000 17300 15800 20000 5600 10700 5000 9400 5100 3500 3300 10000 1700 0 53100 55800 30800 11700 10800 7200 6100 3400 Mumbai Delhi & NCR Chennai Kolkata Bangalore Hyderabad Pune Ahmedabad Estimated Ahmedabad Bangalore Chennai Delhi & NCR Hyderabad Kolkata Mumbai Pune Employment December 2010 46,500 121,600 372,300 586,400 89,300 170,700 655,300 66,600