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Power crisis hits Chennai job market hard

Job creation dips by over 21% in QI

Chennai has seen a drop of over 21% in new job generation in the first quarter of the current fiscal due to the closure of small scale industries (SSIs) owing to unprecedented power crisis in the city, a recent analysis of job scenarios across India done by apex industry body Assocham said.

“A total of over 8,000 new jobs were generated in Chennai during the Q1 as against over 10,200 new jobs created across the city during the corresponding period last year,” said the sector-specific analysis titled ?Job Trends Across Cities & Sectors’.

Assocham tracked data on a daily basis for vacancies posted by over 3,000 companies on various job portals, advertisements in job supplements of national and regional dailies and news journals across 32 sectors.

“The main reason behind the dismal job scenario is closure of about 25% of small and medium enterprises (SMEs) mainly due to severe power shortage. Apart from this, there are number of other factors such as global economic slowdown, decline in industrial production, high inflation, overall difficult and unfavourable market conditions, which have severely impacted India Inc, making them extremely cautious on the hiring front,” said D S Rawat, national secretary general of Assocham.

The hiring activity across sectors is likely to remain subdued even during the Q2 of the current FY as uncertain economic conditions are likely to persist, but the industry is hopeful that the job market will pick up by the end of Q2.

The IT, ITeS and IT hardware services have acquired the highest share of over 41% by creating about 3,700 new jobs as against 5,300 new jobs in this sector during Q1 of the previous financial year. Even though, Chennai emerged as India’s world-class tech destination, IT/ITeS and IT hardware sectors jointly saw a massive decline of over 43%. Of this, new job generation in IT hardware and ITeS sectors declined by about 57% and by about 29%, respectively.

The banking and financial services sectors together created about 670 jobs in Chennai, but job creation in the sector declined at an average of about 15%.

The automobile sector has also seen a decline of over 37% in new job creation as the number of jobs generated in the sector declined from over 560 to just about 350. Besides, manufacturing sector also saw a dip of over 41% from over 460 to about 270. The telecom sector saw a massive surge of over 149% in new job creation in Chennai by creating 400 new jobs in the current FY as against over 160 in the previous financial year.

While the insurance sector registered about 75% increase from over 240 jobs to over 430 new jobs, the academics sector also saw a surge of over 17% in new jobs, creating over 340 jobs across the city.

The human resources sector registered over 10% surge in job creation with over 170 new jobs, while the advertising sector created over 100 new jobs, registering over 63% increase.

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First published on: 03-08-2013 at 05:50 IST
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