Mumbai: The Indian economy may be on the road to recovery but employment outlook remains weak, with as many as 52% of those surveyed last month pointing that there has been decrease in job security against 48% in May, research firm Boston Analytics said.
“The job market in India has been sending some mixed signals in recent months. Sentiment related to job security on an observed basis has fallen again in the last month, reaching its lowest level since August 2008,” according to Boston Analytics’ monthly Consumer Confidence Survey.
“In the June survey, approximately 52% of surveyed respondents observed (compared to 12 months ago) a decrease in job security compared to 48% in the May survey,” it said.
Export-oriented sectors such as gems, jewellery, textiles and leather have seen large scale layoffs triggered by the global economic downturn.
Sectors like information technology, construction, aviation, financial services and real estate that contributed to India’s 9% GDP growth also witnessed significant retrenchment, the survey said.
“On the expectations front, about 22% respondents (surveyed last month) feel unemployment will decrease in the next 12 months compared to 19% in the May survey,” Boston Analytics said.
However, companies appear optimistic about business conditions and are expecting domestic demand to grow, it added.
“Sectors such as FMCG, food and beverages, banking, retail, energy, infrastructure, and pharmaceuticals have witnessed an upswing in hiring activity,” the Consumer Confidence Survey said.
Sentiment about India’s unemployment continues to be pessimistic, there has been some improvement in the last month, it pointed out.
About 24% respondents observed a decrease in unemployment in June compared to 21% in the previous month, the survey said.
“Positive sentiment about the nations macro-economic outlook has translated into optimism about creating alternative means of employment,” it said.
Close to 43% respondents felt it would be easy to create alternative means of employment in the event of a job loss, the survey added.
Boston Analytics surveyed 10,000 respondents across 15 cities, including Delhi, Mumbai, Kolkata and Chennai.