The pace of employment generation in the eight key sectors of the economy between April and June has been the slowest in a year, an official survey shows.
The figures would have been worse but for the depreciating currency that gave a fillip to exports. On absolute numbers, however, employment generation in these industries was the highest in over a year.
A labour ministry report, which is the first official survey on employment generation in 2013-14 has said 86,000 new jobs were created in the first quarter of the fiscal in eight key sectors including IT, automobiles and textiles. It is just marginally higher than the 73,000 jobs created between April and June 2012.
Earlier data shows 1,68,000 jobs were added in these sectors between July and December 2012, another 1,07,000 jobs were created between January and March 2013. Economic growth too faltered in the quarter ending June, 2013 and registered the lowest growth rate of 4.4 per cent in four years.
Private forecasters too have been pointing to a slowdown in job creation. HR consultancy Teamlease in a report said that companies were still positive about business and hiring between April and September this fiscal. For the second half of the fiscal it estimated a decline in job offers for entry and junior levels.
The Labour Bureau conducts a quarterly survey of eight employment intensive sectors including textiles including apparel, leather, metals, automobiles, gems and jewellery, transport, IT/BPO, handloom and powerloom.
The surveys were started in January 2009 to assess the impact of the global financial crisis on the Indian economy.
The latest survey reveals that while textiles recorded the highest job creation of 88,000 in the first quarter, sectors of metals and transport laid off 38,000 and 2,000 workers each.
But steep fall in the rupee which proved a silver lining for Indian exports also led to robust job creation in such industries. Employment in the exporting units increased by 1,21,000 in the first quarter of the fiscal as against 81,000 new jobs in such industries in the previous quarter.
“The highest contributors to the increase in employment in exporting units are textiles where the employment increased by 98,000 followed by leather(16,000) and 2,000 each in automobiles and IT and BPO sectors,” the survey has noted.
JOBS IN CONTRACTION MODE
April -June Jan – March July -Dec April- June
2013 2013 2012 * 2012
Overall 86,000 1,07,000 1,68,000 73,000
Exporting 1,21,000 81,000 80,000 33,000
Non-exporting -34,000 26,000 90,000 39,000
Direct 1,06,000 80,000 1,09,000 97,000
Growth -20,000 27,000 59,000 -24,000
* Survey was undertaken for half year – July to December 2012
*Source: Labour Bureau