The organized sector in India created 346,000 jobs

Ma Foi Randstad
Employment Trends Survey
Wave 3 - 2011

in this report...

Indian Economy – Sluggish but not Panicky
?
? 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 across 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 Likely Increase in Salary - Lateral Job Shift
A8 : City-wise Share of Different Experience Brackets amongst New Hires
A9: 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 third quarter of 2011 (from June to September 2011) and
the likely scenario for the fourth quarter of the year (October to December 2011). The study is based on a sample survey conducted for 676
companies across 13 different sectors of the economy, mainly during the month of September 2011. The feedback was gathered from the
top HR personnel or top management of the companies who could share valuable insights regarding the previous 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
sluggish but not panicky
The Gross Domestic Product (GDP) of India grew by 7.7% in Q1, Production in eight core industries (Coal, Crude Oil, Natural Gas,
2011-12 period, as compared to 8.8% growth rate for Q1, 2010- Refinery Products, Fertilizers, Steel, Cement, Electricity) grew at a
11. Agriculture, Forestry & Fishing and Electricity, Gas & Water slower pace of 5.3%, during the April-August 2011 period, as
Supply sectors showed significantly higher growth in Q1 of current compared to 6.3% growth rate over the same period last year.
financial year as compared to the last year. Trade, Hotels, The y-o-y growth rate of production of these eight industries was
Transport & Communication Sectors retained their high growth at 3.52% for the month of August 2011, almost halved when
trajectory. On the other hand, Mining & Quarrying and compared to July 2011 (7.47%). The growth in IIP fell sharply,
Construction Sectors experienced major fall in growth rate. touching a two year low of 3.3 % in the month of July 2011,
Manufacturing, Community, Social & Personal Services Sectors also after a 8.8% rise during June 2011.
experienced a significant fall. In relative terms, the fall in fortune of
the Financial Sector was minor. The manufacturing sector, which constitutes over 75% of the
index, expanded by 2.3 % in July ’11, as against 10.8% in July
The draft approach paper for the Twelfth Five Year Plan (2012–17) ’10 and 10.3% during June ‘11. April to July cumulative growth
released in August 2011 targets an annual GDP growth rate of rate also decelerated from 10.5% last year to 6.1% this year. The
9%. Earlier, India had achieved an average growth rate of about mining sector expanded by 2.8 % in July ‘11 against 8.7% in July
9% during 2004–08, which was interrupted by the global financial ‘10. The growth of consumer goods sector was higher at 6.2 %
crisis. In the aftermath of the crisis, average growth rate has compared to 5.8% last July. The growth was mainly due to the
dropped by about one percentage point, to 7.8% during turnaround in the consumer non-durables sector (-0.9% to
2009–11. In 2011–12, the terminal year of the Eleventh Plan, RBI 4.1%). The consumer durable production growth decelerated
expects growth to be about 8 per cent. The IMF has forecasted from 14.8% last July to 8.6% in July 2011. Electricity generation
India's economy to grow at a slower pace of 7.8% in 2011-12 and grew by 13.1 % in July, against 7.9 % during June 2011 and
7.5% in 2012, down from its June forecasts of 8.2% and 7.8% 3.7% in July 2010. The capital goods sector fell by 15.2 %,
respectively. Considering India’s growth experience in the post compared to 38.2 % during June 2011 and 40.7% in July 2011.
financial crisis period (2009-11) and the current adverse world From April to July 2011, industrial output grew by 5.8%, which
economic outlook, the next Twelfth Five Year Plan’s target growth was lower than 9.7% achieved for the corresponding period last
rate may not be achieved, more so if the current high inflation rate year. The July growth rate at 3.3%, is also lower than the
persists for a longer time period. According to a Reserve Bank of corresponding figures of June 11 (8.8%) & July 10 (9.9%).
India study, inflation has a negative effect on growth when the
wholesale price index (WPI) based on inflation goes beyond the Economic slowdown has resulted in lower than budgeted
5.5% per cent threshold. However, India, along with China, will collection of tax revenue coupled with lower collection under
continue to be one of the fastest growing economies. small savings schemes. This may lead to a higher level of
Government borrowing than that was projected for the second
India's food inflation continued its northward movement in the half of the fiscal. The unfavourable equity market condition has
week ended September 24, as it rose to 9.41% against 9.13% in also forced the Government to put its disinvestment programme
the previous week. On a week-on-week basis, the food articles on hold. It is now projected that the Government will borrow Rs
index rose a marginal 0.2% to 197.7, recording the eighth 528 billion more from the bond market, during Oct ’11 – Mar ’12
successive week of rising prices. This is however, lower than last period, than what was proposed in the budget in Feb ‘11. The
52 week average of 10.88%. The continued increase in prices benchmark 10-year bond yield spiked 8 basis points to 8.43 per
despite good rains in the last two years indicate a structural shift in cent immediately after the announcement and the benchmark 5-
demand and supply, due to the rise in rural income and labour year swap rate rose 12 bps to 7.15 per cent and the one-year rate
supply constraints. The WPI for the week ended 24th September, rose 6 bps at 7.96 per cent.
2011 for primary articles showed some easing, to 10.84% in the
week ended September 24, as against 11.43% during previous Volatile crude oil prices and sharp rupee depreciation has forced
week. In the corresponding week, last fiscal primary article oil companies to hike petrol prices by Rs 3.14 per litre. The fuel &
inflation was at 19.58%. The 52 week average is at 14.50%. The power prices remained stable, with a y-o-y inflation rate of
non-food inflation in the week under review, slowed further to 14.69% for week ending 24th September, 2011. This was higher
10.77%, as against 12.89% in the previous week. In the than fiscal inflation rate of 10.80% for the last corresponding
corresponding week of the last fiscal, it was at 24.73% and the 52 week and a 52 week average of 12.41%. Oil imports during
week average is at 24.31%. August ‘11 were valued at US $ 10,278.7 million, which was
48.72% higher than oil imports worth US$ 6,911.6 million in
In its bid to control inflationary pressure, RBI had increased the August ‘10. Oil imports during April-August, FY 2011-12 were
repo rate by 350 bps, which is from a low of 4.75% (repo rate) to valued at US$ 52,251.2 million which was 27.09% higher than
8.25% in the past 18 months. At one hand this has increased the corresponding period last year.
input costs, while on the other, it has raised concerns over the
moderation of loan demand and the increase in asset-quality risks
for the financial sector. The twin effects of inflationary pressure
and increased capital costs, is also reflected in the lower advance
tax payment, by India Inc. for the Q2 of FY 2011-12. The advance
tax payment by top 100 companies rose to a modest 9.9% for the
July to September quarter from a year ago, as against 19% for the
April-June quarter. This suggests that the corporate profit growth
is likely to be muted in the second quarter.

Exports during August ‘11 were valued at US$ 24,312.53 million The rupee has been the worst performer among the Asian
which was 44.25% higher in than US$ 16,854.16 million worth of currencies over the last few months. The rupee fell 5.9% against
exports in August ‘10. Cumulative value of exports for the period US$ in September and is currently quoted at 49.023 against the
April-August in FY 2011 - 12 was US$ 134,502.54 million as 2011 high of 43.855 that was reached in late July. This will have a
against US $87,218.51 million last year, registering a growth of major impact on India’s import bill, particularly for oil imports. If
54.21%. Imports during August ‘11 were valued at US the international price of oil does not ease, weak rupee condition
$38,354.15 million (Rs.173,663 crore) representing a growth of is likely to play a major role in increasing the inflation, which is
41.82%. Cumulative value of imports for the first five months of already high. Over the period April-July of current financial year,
FY 2011-12 was at US $189,393.77 million against US US$ 14.54 billion of FDI inflow came into India. This was 92%
$134,928.14 million last year, thus growing at 40.37%. The higher than the inflow figure, for the corresponding period of last
cumulative trade deficit was estimated at US $54,891.23 million, year. Around 35% of FDI came through the Mauritius route.
which is higher than the US$ 47,709.63 million deficit during April Singapore, UK and Germany were the other three major points of
–August of FY 2010-11. origination. Drugs and Pharmaceuticals sector was the major
attractor (US$ 3.00 billion), followed by Services sector (US$ 2.46
billion) and Telecommunication sector (US$ 1.74 billion).

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 from various
rounds of the Annual Survey of Industries (ASI) and publications of the Central Statistical Organization (CSO). Apart
from these sources, the others used for the study are various 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 take care of this problem, by using up-to-date figures on sectoral GDP (Gross Domestic
Product) and Index of Industrial Production (IIP).

Once estimates of base sector level employment was obtained, the data captured through primary survey of 676
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 third quarter of the year
2011 and expectations regarding the fourth quarter of 2011.

Coverage of Primary Survey

Sl. No. Sector No. of companies covered

1 BFSI 54
2 Education, Training and Consultancy 55
3 Energy 28
4 Healthcare 40
5 Hospitality 61
6 IT & ITES 57
7 Manufacturing of machineries and equipments 82
8 Non-machinery Manufacturing 83
9 Media and entertainment 35
10 Pharma 39
11 Real Estate and Construction 55
12 Trade including CRS 44
13 Transport, Storage and Communication 43

Despite the slowdown in Indian economy, it is expected to
estimates of grow at a healthy rate of 7.8% to 8.0%. As a result,
although there will be sectoral variation in the employment

employment outlook among the sectors, new jobs will continue to be
added, albeit at a slower pace. Global meltdown and
continuing high domestic inflation has resulted in increase
generation in of input costs. Concomitant series of increase in policy rates
by Reserve Bank of India has increased the capital cost thus
adversely affecting the rate sensitive sectors like real estate
different sectors and automobile, by decreasing their demand.

The lower general demand level due to reduced disposable
income has also played a role in weakening the job market.
In certain sectors like Construction, Government’s failure
towards quick implementation of infrastructure projects has
affected the job generation and seasonal cyclicality in
demand is another reason lower employment growth in
sectors like retail and hospitality.

The overall change in employment in Q2 of FY 2011-12 and
change expected in the Q3 of FY 2011-12 is presented
below in the following table. More detailed sectoral level
analysis highlighting the prospects of these individual
sectors, which will help in analysing why the employment
numbers are as they are, is presented subsequently.

Expected Employment Increase in Different Sectors

Expected
Employment Increase in Employment Per cent increase
Sectors increase in
Employees Jul - Sep Jul - Sep Oct - Dec Jul - Sep Oct - Dec
June
2011 2011 2011 2011 2011
2011 2011
Expected Estimated Expected Estimated Expected

BFSI 939,800 80,700 15,300 14,800 11,900 1.57 1.27

Education, Training and Consultancy 9,839,200 107,500 24,500 21,600 20,700 0.22 0.21

Energy 910,100 24,900 7,900 7,500 6,600 0.82 0.73

Healthcare 3,492,700 248,500 63,800 60,400 58,700 1.73 1.68

Hospitality 6,205,600 218,200 54,400 48,400 41,600 0.78 0.67

IT & ITES 2,010,000 183,000 55,500 46,600 41,600 2.32 2.07

Manufacturing of machineries and equipments 1,164,600 68,400 14,500 13,800 14,000 1.19 1.20

Non-machinery Manufacturing 4,589,100 223,400 36,100 36,500 38,300 0.80 0.83

Media and entertainment 1,413,000 126,100 31,300 30,900 32,800 2.19 2.32

Pharma 309,000 49,400 11,300 12,600 12,800 4.08 4.14

Real Estate and Construction 934,300 144,700 29,600 30,700 26,200 3.29 2.80

Trade including CRS 671,500 38,600 10,800 9,700 9,900 1.44 1.47

Transport, Storage and Communication 2,709,500 93,300 14,200 12,500 11,300 0.46 0.42

Banking, Financial composition of new hires

Services and Insurance 16%
3%

Between June and September 2011, the 32%

BFSI sector has added 14,800 jobs and is
expected to add another 11,900 jobs < 1 Year

between October and December 2011. by experience
1 - 4 Years

5 - 10 years

> 10 Years
RBI raised the policy rate twice in the last quarter to 8.25% in its fight
?
against inflation, following up its earlier 10 increases. This will further
increase the cost of Fund for both the banks and the borrowers. Some
of the rate sensitive sectors like real estate and auto industry are
already experiencing a slowdown in demand. Slower credit growth 49%

will also limit the ability of banks to fully pass on the increase in cost
of fund, putting pressure on its margin.
?banks had managed to reduce their Gross NPA figures from
Indian
11.4% in 2001 to 2.4% in 2010. But the increase in the interest rate
and faltering growth potential, both domestic and international, has
raised the prospect of increase in bad debts in the books of the banks. 2%
Given the current inflationary situation, even if the policy rates are not
? 11%

raised further, the interest rate is expected to remain at an elevated 19%
level with no cut expected anytime soon. The pressure on Indian
banks is expected to continue for some time.
Banks raised deposits Rs. 3,223 billion during the April-September
? Admin / Accountants etc
period, but could disburse credit worth Rs. 1,511 billion only, implying
Core Activities including
an incremental credit-deposit ratio of 0.47, which is the lowest in last Marketing and BD
four years. by function
Customer Service
Continuing with the negative annualised premium equivalent (APE)
?
growth over the last 3 quarters of 2010-11, the slowdown in Life Senior Management
Insurance sector continued in Q1 of 2011-‘12 with the industry
registering negative APE growth of 23%. The private sector fared
even worse at negative growth of 40%. The demand shift towards
traditional Insurance products and away from investment products is
cited as the main reason. 68%

The General insurance industry registered 22.35% growth during Q1
?
of FY2011-12 in terms of gross written premium. It is estimated to
grow at over 18% till 2015. In the near term, the premium income
from the largest sub-segment of Motor Insurance may slow down due
to faltering auto sales. The second largest vertical - Health Insurance is
expected to retain its positive outlook. The growth in premium is 5%
expected to continue at a compound annual growth rate (CAGR) of 13%

around 28.5% during FY12-FY14.
16%
? the employment generation by the BFSI sector in the June-
Overall
September ’11 quarter has been subdued. It is also expected to
remain so unless the underlying economic factors show signs of Campus
improvement. 17%
HR Agency
by hiring sources Referrals

Social Media

Others

49%

Increase in Salary
Lateral Job Shift

Estimated Employment Estimated Employment Estimated Employment
June 2011 September 2011 December 2011

939,800 954,600 966,500 12.2% 9.1%
July - September 2011 October - December 2011
Note: Employment numbers are given as round figures

Education, Training and composition of new hires

Consulting 4%

30%

Education, Training and Consultancy sector
has added 21,600 jobs and is expected to < 1 Year

add another 20,700 jobs between October by experience
1 - 4 Years

5 - 10 years
and December 2011. > 10 Years

? Right to Education (RTE) Act 2009 having come into effect
With the
from April 2010, it is now a fundamental right of all children to
demand eight years of quality elementary education. The effort to
36%
expand educational access is severely constrained by the lack of
suitably qualified, appropriately-trained human resources in adequate
numbers.
There are half a million vacancies of teachers in the country and
?
another half a million teachers are required to meet the RTE norms on
pupil-teacher ratio. The demand in the secondary education segment
3%
will also see commensurate increase.
12%
?18 percent of all Government’s education spending or about
About 23%
1.12% of GDP is spent on higher education today.
? Five Year Plan targets to raise it to 25% and 1.5%
The 12th
respectively, which means an additional allocation of about Rs.25,000
Admin / Accountants etc
crore to higher education.
? participation in the higher education will also continue to
Private Core Activities including
Marketing and BD
expand, especially in Management, Medicine and Technology by function
segments. Similar increased private participation will be seen in the Customer Service
expanding pre-school sector and skill development initiatives. The Pre- Senior Management
school education market is set to reach US$ 1 billion mark by 2012
against US$ 750 million at present.
The upgradation of Industry Training Institutes/ Industry Training
?
Centers to launch and scale up technology specialisations across all
Vocational Training Institutes is also expected to increase under new 62%
Public Private Partnership initiatives.
The newly setup IIMs, IITs, IIITs, IISERs and Central Universities are on
?
a recruitment spree along with the existing institutions. This coupled
with increased Government focus on research is expected to result in
significant reverse brain drain, also aided by current adverse economic
conditions prevailing in most of the advanced economies.
8%
The employment generation across quarters may not be linear, as
? 15%

most of the hiring takes place before the beginning of a new
academic session, generally between January and June period. This is
17%
also reflected in the June – September ’11 employment figures for the
sector. Campus
16%
HR Agency

Social Media

Others

44%

Increase in Salary
Lateral Job Shift


9,839,200 9,860,800 9,881,500 11.5% 11.0%

composition of new hires
Energy

Energy sector has added 7,500jobs and is 26%
expected to add another 6,600 jobs
between October and December 2011. 51%
< 1 Year

1 - 4 Years
by experience
? for Electricity declined in August 2011 (149.4) compared to
The IIP 5 - 10 years
July 2011 (152.1). Compared to January 2011 (146.4), it has
increased only marginally. At y-o-y level, it has increased by 9.5% > 10 Years
compared to August 2010 (136.4).
Considering coal based power generation constitutes more than half
?
22%
of India’s installed capacity, the country’s power scenario will continue
to be under stress as the shortage of coal persists. The power ministry
has estimated that the country has lost four billion units (bu) of power
generation between April and September this financial year, due to a
severe dip in coal supply from Coal India and its arms. According to
Power ministry estimates, Coal India and its associates may achieve
only 310 million tonnes of production in 2011-12 against a target of
347 mt. Coal Ministry is also yet to sign fuel supply agreement for the
25,000 MW capacity power plants that came up in last three years. 2%

The situation has been further aggravated by volatile international
prices of coal. 20%

? to coal, gas based power generation units are also facing
Similar 27%

supply shortages, leading to lower plant load and stagnation in
capacity expansion. Considering the share of Thermal power in India’s Admin / Accountants etc
overall power generation capacity, the stunted growth of this sub-
sector may be responsible for the lower than expected employment Marketing and BD
generation in the Energy sector. by function
Customer Service
The government plans to add 100,000 MW during the 12th Plan to
?
the current capacity of 174,000MW. However, India’s track record in Senior Management
adding power generating capacity is poor. In the five years to 2007,
the country added 20,950MW of capacity, against a target of
41,110MW. The situation remains grim for the 11th Plan target, with
the government set to miss the plan target of 78,577 MW. So,
though there is huge unmet demand and significant growth potential, 51%

the actual expansion of the sector is uncertain. Successful
implementation of expansion plans can result in generating
substantial number of jobs.
There will be increased demand for trained manpower for operating
?
the smart grid technologies, systems and related software, as po¬wer
industry in India is expe¬c¬ted to undergo a paradigm ch¬ange, 6%
fuelled by legislative and regulatory activities. The sector would 12%

require power instrumentation engineers to design and produce these
new equipments.

14%
Campus
36%
HR Agency

Social Media

Others

32%

Increase in Salary
Lateral Job Shift


910,100 917,600 924,200 16.0% 15.0%

Healthcare

Healthcare sector has added 60,400 jobs 29%

and is expected to add another 58,700
jobs between October and December
36%

< 1 Year
2011. 1 - 4 Years
by experience
5 - 10 years

The Healthcare Industry has witnessed a paradigm shift in the last five
? > 10 Years
years and has grown from a unorganized to organized sector. The
contributing factors for this shift are growing Indian economy
resulting in increasing disposable income level of people, increased
penetration of health insurance sector, demographic shift, expanding
medical tourism, increased prevalence of lifestyle related diseases and 33%

enhanced healthcare awareness, at least among the urban
population.
The Indian Healthcare Industry is currently estimated at US$ 40 Billion.
?
The industry is expected to grow to US$ 79 Billion by 2012 and ~ US$
280 Billion by 2020 according to a KPMG report on the sector.
The hospital sector is experiencing rapid increase in investments from
? 4%
Corporates. Most of the existing players have announced expansion
plans and many of large companies with no or very little healthcare 18%
presence have announced huge investment plans in Healthcare 28%
Delivery.
? also a boom in the diagnostic industries along with the
There is Admin / Accountants etc
growth in hospital infrastructure in the country. New investors
including the MNCs are playing a key role in increasing the Marketing and BD
employment base in the sector, through expanding their presence in by function
Tier I and Tier II cities. Customer Service

There have been a number of noteworthy initiatives taken up by the
? Senior Management
Indian government to boost the Healthcare sector in the country like
100% FDI under automatic route and National Rural Health Mission.
Expansion is also taking place in the number of medical colleges and
their intake capacity. Six new AIIMS category medical institutions are
coming up along with upgradation of many existing colleges. 50%

This sector, however, suffers from bottlenecks in manpower supply, as
?
the current number of seats in medical and nursing colleges is
woefully short of requirement, as reflected in the low doctor to
population ratio. This is expected to limit growth potential in the
shorter term.
An ASSOCHAM study has estimated the current worth of Indian
? 7%
medical tourism industry at around Rs.4.5 billion with about 0.85 19% 5%
million foreign patients annually getting treated here. These numbers
are expected to grow to Rs. 10.8 billion with 3.2 million foreign
patients expected to visit India by 2015. However, with the current
global economic downturn, the inflow of foreign patients in the June- Campus
September ’11 period has been lower than the trend.
HR Agency
The increase in the price of pharmaceutical products has led to the
?
review of brownfield FDI policy in the sector. by hiring sources 12%
Referrals

Social Media

Others

57%

Increase in Salary
Lateral Job Shift


3,492,700 3,553,100 3,611,800 17.0% 16.4%

Hospitality composition of new hires

Hospitality sector has added 48,400 jobs 22%

and is expected to add another 41,600 36%

jobs between October and December < 1 Year
2011. 1 - 4 Years
by experience
5 - 10 years

?one of the booming sectors of Indian economy. According to
This is > 10 Years
World Travel and Tourism Council, the tourism industry in India is
expected to expand from its current size of Rs. 4.4 billion to Rs. 21
billion in 2022.
? period of January to July 2011, the Hotel and Tourism sector
Over the
has seen an FDI inflow of Rs. 2.26 billion. 41%

? Tourist Arrivals (FTAs) during the Month of September 2011
Foreign
was 0.40 million as compared to FTAs of 0.37 million in September
2010 and 0.33 million in September 2009. FTAs during the period
January-September 2011 were 4.22 million with a growth of 10.0 %,
as compared to the FTAs of 3.84 million with a growth of 8.0 %
during January-September 2010 over the corresponding period of 3%
2009. The FTA in 2016 is expected to be 11.24 million. 7%

With expanding Indian economy, this number will be further bolstered
?
by business travelers. The domestic tourism sector also enjoyed a 28%

healthy growth rate of 10.7% in terms of number of visitors (740.21
million) in 2010 calendar year. Number of Domestic Tourist Visits Admin / Accountants etc
(DTVs) in 2016 is projected to be at 1451.46 million.
? attractiveness of India as a destination for medical tourism
Growing Marketing and BD
will also provide significant support. An ASSOCHAM study has by function
estimated the number of foreign patients visiting India to grow to 3.2 Customer Service

million by 2015 from around a million currently. Senior Management
However, despite high growth potential of the hospitality sector over
?
the medium to long term, it may face glitches in the short term
affecting the potential for (permanent) employment generation. 62%

In the face of uncertainty in demand, this sector is also seeing
?
increased hiring of need based temporary hands and outsourcing.
Seasonal factors like monsoon and flood also dampened the mood in
the June-Sept 11 quarter.
According to a National Skill development Corporation study on skill
?
gap in hospitality sector, the overall employment by 2022 in the
Tourism Industry (in Hotels and Restaurants and Tour Operators) is
estimated to be about 7.2 million persons, generating employment 14%
opportunity for 2.6 million more people.
? the requirement though will be in the unorganized sector. A
Bulk of
large portion of the demand for human resource will occur in the 33%
areas of Front Office Staff, F&B Services and Kitchen, Housekeeping 11%
staff, Ticketing and Sales, Tour Guides. Campus

HR Agency

Social Media

Others

3%

39%

Increase in Salary
Lateral Job Shift


6,205,600 6,254,000 6,295,600 15.0% 13.3%

IT & ITeS
Information Technology and 2%

Information Technology Enabled Services 28%
30%

Between June and September 2011, the IT
& ITES sector has added 46,600 jobs and is < 1 Year

expected to add another 41,600 jobs by experience
1 - 4 Years

between October and December 2011. 5 - 10 years

> 10 Years

? national policy on information & communications
The draft
technology, 2011 unveiled here on Friday by Telecom & IT Minister,
Mr. Kapil Sibal, aims at increasing the revenues of the IT & ITeS
industry to US $300 billion by 2020. Presently, with the exports 40%
contributing to the majority of the $80 billion earnings, the policy
proposed is expected to boost the growth of indigenous demands
and market. The proposed policy also aims at formulating fiscal and
other incentives to attract investment in this sector in Tier II and III
cities.
The computer software and hardware jointly with telecommunication
? 3%
7%
sector has seen an FDI inflow of Rs. 7.68 billion, accounting for
11.81% of total FDI inflow in the corresponding period. This is 28%
significantly lower than the long term (Apr ’00 – Jul’11) trend share of
15.96%.
NASSCOM is of the view, that the recent developments in the US and
? Admin / Accountants etc
Europe would not affect the Indian IT industry much and it will pursue
a growth path owing to augmented domestic demands and Marketing and BD
expanding in emerging markets like Brazil and Russia. On the by function
Customer Service
contrary, ASSOCHAM expects the macro fiscal insecurity in US and
Europe having an adverse impact on the markets, considering their Senior Management
share in exports of India’s $80 billion IT industry. This reflects some
degree of uncertainty among the industry players.
? led to many IT firms becoming cautious in their hiring. This
This has
has been further accentuated by the decline in attrition rates since the 62%

economic downturn, which has come down to 15% from 25% in the
last couple of quarters. Many of the firms are hiring based on their
immediate project needs
? IT companies have also been very active in hiring freshers from
The big
campus early this year. But with lower attrition rates and uncertain
future flow of new projects, the initial calculations may have gone
wrong. There are reports of delay in on-boarding the new campus 9%
hires, with many of those who completed studies in June/July still to 17%
get their joining letters. This will also limit scope of new hiring, at least
at the junior level, for some time.
While the sluggish global economy poses a risk to pricing and new
? 18%
orders, a weak rupee on the other hand, may help boost margins. Campus
12%
There has been about 7.8% depreciation in INR against US$ in the
HR Agency
last 45 days and further depreciation is possible in light of continued
global risk aversion. If the depreciation holds, it may prove positive for by hiring sources Referrals
IT sector companies subject to their hedging positions. Social Media

Others

44%

Increase in Salary
Lateral Job Shift


2,010,000 2,056,600 2,098,200 15.6% 15.6%

Manufacturing composition of new hires
Machineries and Equipment 3%

27%

Manufacturing of Machineries and
Equipment sector has added 13,800 jobs < 1 Year

and is expected to add another 14,000 by experience
1 - 4 Years

jobs between October and December 5 - 10 years

2011. > 10 Years

? the manufacturing sector growth has remained almost similar
Overall,
during last few months and the IIP is hovering around 175 points
since April 2011. According to the latest Government release, IIP 47%

during July-August 2011 has gone down marginally by about 5
points.
? Goods sector performed almost at the same level during July-
Capital
August 2011, as compared to the second quarter of the year.
The sub-sectors such as Motor Vehicles, Trailers, other Transport
? 1%
Equipments, Radio, Television and other Communication Equipments 11%
have posted high positive growth during this quarter. 22%

The performance of the Electrical Machineries sector remained poor.
?
? in cost of capital has also played a dampening role for new
Increase
investment in the sector. Admin / Accountants etc
The performances of these sectors have resulted in the lower level of
?
job additions as against expectations. The expectation for the next Marketing and BD
quarter is also in the similar lines. by function
Customer Service
The reported salary hike for lateral shifting during the third quarter
?
was lower than second quarter and expected to remain almost at the Senior Management
same level during the next quarter.
? the hiring mood within the sector is not yet promising.
Overall,

66%

5%
13%

16%

Campus
17%
HR Agency

Social Media

Others

49%

Increase in Salary
Lateral Job Shift


1,164,600 1,178,400 1,192,400 13.0% 12.8%

Manufacturing composition of new hires
Non-machinery Manufacturing 2%

Between June and September 2011, the 17% 22%

Manufacturing of Non-machinery Products
sector has added 36,500 jobs and is < 1 Year

expected to add another 38,300 jobs by experience
1 - 4 Years

between October and December 2011. 5 - 10 years

> 10 Years

?overall growth in the manufacturing sector is reflected
Lower
substantially in the performance of this sector.
The sub-sectors that performed relatively better during third quarter of
?
2011 were basic metals, fabricated metal products, food products and 59%
beverages etc. All these sub-sectors have posted double-digit growth
during this period.
? the poor performers were the textiles, apparels tobacco
Amongst
products, chemical & Chemical products, paper & paper products and
wood products. Many of these sectors have registered negative IIP
growth, especially during the month of August 2011. 2%

The continuing higher level of inflation, interest rates, higher cost of
? 12%
18%
capital, higher prices of raw materials and intermediate goods have
further stifled the sentiment of this sector.
The festival months are expected to boost the demand during the
?
current and the next quarter and ubring some positivity. Admin / Accountants etc
The sluggish growth of the sector has reflected in relatively lower
? Core Activities including
hiring activity within the sector. The estimated increase in employment Marketing and BD
by function
was lower than that was expected earlier. However, the expected Customer Service
growth rate during next quarter is marginally higher than the current
quarter in view of expected higher demand level during festival times. Senior Management

68%

5%
13%

16%

Campus
17%
HR Agency

Social Media

Others

49%

Increase in Salary
Lateral Job Shift


4,589,100 4,625,600 4,663,900 14.2% 14.2%

Media and Entertainment composition of new hires

Media and entertainment sector has added 21%

30,900 jobs and is expected to add 32%

another 32,800 jobs between October and < 1 Year
December 2011. 1 - 4 Years
by experience
5 - 10 years

The Indian Media and Entertainment industry continues to grow at a
? > 10 Years
healthy pace with over 500 Television (TV) channels and producing
more than 1,000 programs every year. Large number of production
houses catering to film, television and the advertisement industry are
an important source of employment generation in this sector.
Convergence between entertainment, information and
? 46%
telecommunication is increasingly impacting India’s overall media and
entertainment industries. The draft New Telecom Policy envisages 175
million broadband connections in India by 2017, and 600 million by
2020, at a minimum of 2mbps download speeds.
According to an IAMAI-IMRB joint study, mobile internet usage has
?
been witnessing a 15% growth q-o-q and the total number of users 4%
was estimated to be at 46 million in September 2011. The access of 8% 12%

content through mobile internet is likely to accelerate further, now
with the introduction of 3G services.
PWC estimates the Indian Media & Entertainment industry to touch Rs
?
1,199 billion in 2015 growing at 13.2% CAGR and the television Admin / Accountants etc
industry is expected to grow by 12.9% cumulatively over 2010-15. It
is projected to command half of the entertainment pie by 2015 with a Core Activities including
Marketing and BD
robust growth rate of 14.5%. by function
? popularity of the direct-to-home (DTH) services may lead to a
Growing Customer Service

reorganization of content delivery mechanism. Increasing access to Senior Management
broadband internet and mobile telephony will also provide two
alternate new platforms for content delivery.
? same period, the radio sector is projected to grow at 19.2%
Over the
and the Indian print media is expected to expand by 9.6%.
Animation, gaming and VFX industry is expected to maintain its 76%
growth pace and grow at 21.4%. Benefitting from the mobile value
added services (VAS) market, the music industry is expected to grow
at 17.6% over the same period.
A FICCI-KPMG study puts the size of the Indian Film industry in 2015
?
at US$ 2.6 billion.
? services have become immensely popular in India. The sector
FM radio 7%
6%
is poised for further expansion with Government approval for e-
auction of licences under the third-phase expansion of FM radio. FM 28%
Phase-III will extend FM radio services to about 227 new cities, in
addition to the present 86 cities, with a total of 839 new FM radio
channels in 294 cities. It will result in coverage of all cities with a Campus
population of one lakh and above with private FM radio channels.
HR Agency
This growth in the sector has fuelled the increase in hiring for the core
?
functions like Marketing and Business Development roles with by hiring sources Referrals
maximum hiring happening through referrals and the social media. Social Media
35%
Others

27%

Increase in Salary
Lateral Job Shift


1,413,000 1,443,900 1,476,700 17.0% 17.2%

Pharma

Pharma sector has added 12,600 jobs and 24%

is expected to add another 12,800 jobs
between October and December 2011. 39%

< 1 Year

1 - 4 Years
by experience
?Pharmaceutical exports increased by 26.05% in FY 2010-11
India’s 5 - 10 years
over the previous year, with the total value of exports reaching up to
US$ 6.54 billion. This is a significant jump from a mere 2.21% > 10 Years
increase in exports in FY 2009-10.
Drugs and Pharmaceuticals have been the top most FDI recipient
?
sectors between April ’11 and July ’11 period. Out of US$ 14.54 33%
billion of FDI inflow over this period, the Pharma sector cornered
almost US$ 3.0 billion. This is a major jump considering that the
cumulative FDI inflow in this sector over the period April ’00 to March
’11 was at US$ 1.90 billion only.
According to PwC, India is expected to join the league of top 10
?
global pharmaceuticals markets in terms of sales by 2020 with the
total value reaching US$ 50 billion. McKinsey suggests that if
aggressive growth strategies are implemented, it has the potential to 5%
15%
reach US$ 70 billion by 2020 from US$ 13.1 billion in FY 2010-11.
11%
? experts suggest that almost a third of total R&D investment
Industry
by the global Pharma industry, which is estimated at US$ 40-50
billion, could be made in India over the next 10 years.
? Research in India is growing at an annual rate of around
Contract Admin / Accountants etc
20% to 25%. Clinical trials represent 65% of this market and new Core Activities including
drug discovery makes up the remaining 35%. Marketing and BD
by function
However, there has been concern in the industry in terms of
? Customer Service
increasing prices of the Pharma products, especially concerning
Senior Management
products of Indian Pharma companies recently acquired by MNCs. As
such, though greenfield FDI will continue be under automatic route,
brownfield investments will be allowed through the Foreign
Investment Promotion Board (FIPB) for six months, following which,
such acquisitions will have to be routed through the Competition
Commission of India. This may be a minor dampener to the otherwise 69%

rosy growth picture for the sector.
The sector witnessed a spurt in hiring for experienced people for core
?
functions and majority of the recruitments were made through
referrals.
2%

21%

33%

Campus

HR Agency

Social Media

Others

10% 34%

Increase in Salary
Lateral Job Shift


309,000 321,600 334,400 15.2% 15.6%

Real Estate and composition of new hires

Construction 1%

24%

Between June and September 2011, the
Real Estate and Construction sector has 36%

added 30,700 jobs and is expected to add < 1 Year

another 26,200 jobs between October and
1 - 4 Years
by experience
5 - 10 years
December 2011. > 10 Years

According to a McKinsey Global Institute study, India's urban
?
population will soar to 590 million by 2030 from 340 million in 2008, 39%

stimulating a near four-fold increase in per capita income. India will
need to invest US $1.2 trillion over next 20 years to modernise urban
infrastructure and keep pace with this growing urbanisation.
? 95% of India’s foreign trade by volume and 70% by value, is
Around
transported through sea. This emphasizes the contribution in
sustaining growth and development of the Indian economy.
Government of India has put in place a National Maritime
4%
Development Programme (NMDP) encompassing 276 projects at an
estimated cost of US$ 12.52 billion. Under the Maritime Agenda 20%

2020, the total capacity of all these ports is expected to reach 3,280 20%
MMT, with an expected investment of US$ 26.81 billion in major
ports and US$ 37.68 billion in non-major ports.
Admin / Accountants etc
Government has embarked on a massive National Highways
?
Development Project (NHDP) in the country. Under the first two Core Activities including
phases of the project 14,279 km of National Highways are proposed by function
Marketing and BD
to be upgraded to 4 or 6 lane at a total estimated cost of US$ 14.56 Customer Service
billion. The Government of India (GoI) plans to develop 35,000 km of
Senior Management
highways by 2014 under the NHDP.
According to IATA, India's Domestic Aviation Market expansion has
?
been the strongest in the world - tripling in the past five years,
making it the ninth largest aviation market in the world. As per
DGCA figures, passengers carried by domestic airlines during Jan-Aug
56%
2011 were at 39.63 million, as against 33.41 million during the
corresponding period of previous year, thus registering a growth of
18.6 per cent.
? expected to cross the 450 million mark of domestic passengers
India is
by 2020. This growth will not be limited just to the metros, but has
already started to reach the Tier II and Tier III cities. This expansion will
necessitate an enhanced expenditure on developing infrastructure. 5%

? installed power generation capacity of India in 2011 is
The total 24%
10%

estimated to be around 1,76,990.40 MW. According to the experts,
the total demand for electricity will be above 950,000 MW by 2030.
This entails massive expansion in all modes of power generation.
Campus
? real estate and construction sector is predicted to see
Thus, the
heightened activities over a long period of time in future. However, in HR Agency
the shorter term, there may be many slips between potentials and by hiring sources Referrals
reality as many of the infrastructure projects have been either delayed
orstalled. Social Media

The inflationary pressure followed by higher interest rate has increased
? 17% Others
the cost, both for inputs and capital mobilisation. In case of real
44%
estate, this has also led to sharp fall in demand. This is reflected in the
mere 1.2% growth in the contribution of Construction sector in
India’s GDP for Q1 of FY 2011-12 over corresponding quarter of
previous year.
Increased interest rates has brought down the demand in the housing
?
sector, directly impacting the growth and job generation.

Increase in Salary
Lateral Job Shift


934,300 965,000 991,200 12.7% 12.1%

The organized sector in India created 346,000 jobs

The organized sector in India created 346,000 jobs

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (19)

Semelhante a The organized sector in India created 346,000 jobs

Semelhante a The organized sector in India created 346,000 jobs (20)

Mais de Indicus Analytics Private Limited

Mais de Indicus Analytics Private Limited (20)

Último

Último (20)

The organized sector in India created 346,000 jobs