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Job market growth to slow down slightly, survey says

Job market growth to slow down slightly, survey says
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First Published: Wed, Mar 14 2007. 12 21 AM IST
Updated: Wed, Mar 14 2007. 12 21 AM IST
The job market in India is expected to remain vibrant, but growth will slow down slightly from the first quarter of this year into the next, according to a global employment survey released on 13 March.
Of the nearly 5,000 Indian employers interviewed as part of the Manpower Employment Outlook Survey, a third of them planned to hire aggressively in the second quarter of 2007, which ends 30 June. Just over half expected no change in hiring plans, while 2% expected a decrease.
Manpower, a US-based staffing firm with a subsidiary in Gurgaon, relies on an equation it calls the overall Net Employment Outlook, which takes the percentage of employers anticipating employment to increase, and subtracts the percentage expecting to see a decrease.
Manpower’s survey put that number at 31%, which represents an 8% decrease from the first quarter of this year and a 9% decrease for the year on a seasonally-adjusted basis.
The study, which surveyed 50,000 people across 27 countries, also found US companies becoming more cautious in hiring for the next quarter, with less than one in five planning to add to their payrolls.
“The hiring intentions across all industry sectors appear to have softened as organizations are likely to be reviewing their requirements at the beginning of the fiscal year,” said Soumen Basu, executive chairman of Manpower Services India Pvt. Ltd.
Some companies, though, say they remain bullish on hiring and anticipate scouting for more talent. At Samsung India, Sanjay Bali, general manager for corporate human resources, said the company is recruiting for research and development, and to staff a new manufacturing facility in Chennai.
“Last year we hired 70 people and this year it will be double of that, to say the least,” he said, adding that the cost of hiring has skyrocketed.
In India, Manpower surveyed 4,858 employers across seven sectors, including services; finance, insurance and real estate; mining, oil and gas, construction; public administration and education; transport and utilities; wholesale and retail trade and manufacturing. It showed the most anticipated growth in mining and construction, up by 40%.
The survey also found that unlike North, South and West India, employers in the East were less positive about hiring in the upcoming quarter. Kolkata-based Search Centre, a recruitment services company, found that while hiring in Mumbai and Delhi has increased, cities such as Kolkata have downsized their operations after the entry of call centres, which employ a large percentage of entry-level personnel and might pay more than older firms.
“Overall, along with hiring, salaries are going up,” said Radhika Jaggi, director of the firm. “There is a lack of qualified employees to match the packages.”
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First Published: Wed, Mar 14 2007. 12 21 AM IST
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