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Business News/ Industry / Job creation softens in September quarter
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Job creation softens in September quarter

Though only 158,000 jobs were added, the number is higher than the two quarters prior to a robust June quarter

A file photo of minister of state for labour and employment (independent charge) Bandaru Dattatreya. The labour ministry survey showed that of the total 158,000 jobs added, 70,000 are in the contract or casual category and the rest are direct or permanent jobs.Premium
A file photo of minister of state for labour and employment (independent charge) Bandaru Dattatreya. The labour ministry survey showed that of the total 158,000 jobs added, 70,000 are in the contract or casual category and the rest are direct or permanent jobs.

New Delhi: Manufacturing and export-oriented companies in India added 158,000 jobs in July-September 2014 as job creation softened after a robust June quarter, according to the quarterly jobs data released on Wednesday by the labour ministry.

Though the September quarter number was lower than the June quarter’s 182,000 jobs, it was much higher than the two previous quarters. In the March 2014 quarter, employment generation contracted by 36,000 while in the quarter to December 2013, jobs grew by 83,000.

Among the sectors, textiles, and information technology and business process outsourcing (IT/BPO) continued to register robust growth, while automobiles saw a turnaround. The September quarter, however, saw more casual workers being added, compared with the previous quarter, a finding that may give reason to labour unions to raise their voice further against planned labour reforms.

“At the sectoral level, the maximum increase in employment is seen in the IT/BPOs sector (57,000) followed by textiles, including the apparels sector (49,000), metals (47,000), automobiles (28,000), and gems and jewellery sector (8,000) during the reference period," the quarterly employment survey said.

Three sectors saw negative job growth.

“The decrease in employment is seen in the leather sector (18,000), followed by the transport sector (7,000) and handloom/powerloom sector (6,000) during the reference period," the survey said.

The labour bureau conducted the survey covering 2,078 companies across eight sectors—textiles including apparels, leather, metals, automobiles, gems and jewellery, transport, IT/BPO and handloom/powerloom. This is the 23rd quarterly survey. The first quarterly survey was conducted for October-December 2008 to gauge the impact of the economic downturn on Indian companies and job creation.

Job creation is a key focus area of the government and Prime Minister Narendra Modi’s “Make in India" mission is aimed at helping boost manufacturing and jobs. “The good point is that in the first two surveys after the new National Democratic Alliance (NDA) government assumed office, the job growth is much better than the preceding months," the official said, requesting not to be named. The official said the job situation is expected to improve with more companies coming up with better hiring plans as the economy revives.

A February employment outlook survey by the jobs portal Naukri.com had predicted improving corporate sentiments and more hiring in the first half of 2015. More than two-thirds (69%) of 1,200 recruiters and consultants, who participated in the survey, forecast creation of new jobs in the first half of 2015, while this figure was at 64% for the year-ago period.

However, the labour ministry survey showed that of the total 158,000 jobs added, 70,000 are in the contract or casual category and the rest are direct or permanent jobs. The 70,000 figure is the highest in at least last four quarters or since October-December 2013. In the June quarter, companies had added only 22,000 casual jobs.

“The survey results show...at the sector level, maximum increase in employment (in casual category) is reported in the metal sector (30,000), followed by IT/BPOs (16,000), automobiles (11,000)",the report said.

The number of permanent workers shrank the most in the handloom and powerloom sector (14,000) followed by leather (12,000) and transport (8,000), the survey said.

“Companies will keep adding casual workers for their own benefit, and with labour reforms happening at both central and state levels, this casualization of workforce culture will grow further," said D.L. Sachdeva, a national secretary with the All India Trade Union Congress.

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Published: 26 Mar 2015, 12:13 AM IST
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