Press Release
India is back on hiring: Ma Foi Employment Trends Survey
New Delhi, March 9, 2010: The organized sector in India is set to create close to a million new jobs in the year 2010 -2011 reveals Ma Foi Employment Trends Survey.
The survey was conducted among 1,000 companies across 11 industry segments in India – Banking and Financial Services (BFSI), Education, Energy, Health, Hospitality & Travel, IT, ITES, Real estate & Construction, Trade, Transport and Manufacturing. These companies were queried about their hiring intentions in the (a) over the next 3 months and (b) over the next year.
The overall picture looks bright for the year with the intention of creating close to a million new jobs. However, in the immediate future of 3 months, hiring intentions of employers are not loud and clear. Most of them are cautious for the quarter but optimistic about the FY 2010-11.
BFSI:
Total Employee Base: 8,52,000 New Jobs: 46,000
Employment in the Banking and Financial Services industry has not grown in the aggregate last year due to low additional employment by public sector financial institutions. However, with greater efforts in financial inclusion, this trend is expected to turn around. Moreover, average age of an employee in PSU banks being 53, we will witness replenishment of talent soon there. Last year’s troubles in the financial sector have taught the sector many lessons and its impact will be visible this year on employment numbers and criteria. This sector is looking to hire over 46,000 people in 2010.
Education, Training and Consultancy:
Total Employee Base: 97,15,000 New Jobs: 83,000
India has the largest student population in the world with 13.5 crore children in primary schools. And this large body of students needs educational infrastructure and teaching staff. The country faces a shortage of at least two lakh schools. To plug the gap, investments are flowing in. We see a surge in education, especially in the private sector; vocational training, professional training, as well as growth in private schools have been aiding this momentum.
Energy generation & supply:
Total Employee Base: 8,74,000 New Jobs: 15,000
Major projects are not expected to come on-stream this year. Bulk of the growth is likely to come from the city utilities. However, this sector is expected to generate many more jobs in the coming years.
Healthcare
Total Employee Base: 33,66,000 New Jobs: 2,95,000
Private healthcare boom continues notwithstanding the slowdown. Over the last 18 months, when most industries were busy restructuring operations, cleaning up books or optimizing their costs, Indian pharmaceutical and healthcare industry was adding manpower and giving salary increases. Next year looks bright with addition of many new hospital beds, deeper penetration of super-specialty healthcare, greater coverage of insurance facilities and increasing medical tourism.
Hospitality & Travel:
Total Employee Base: 59,51,000 New Jobs: 1,37,000
India is expected to add about 15,600 hotel rooms in 2010. And by 2011, 40 new international hotel brands will be operational in India. Add to this, close to 415 projects or 68,480 rooms are under various stages of development and 41 per cent of these projects may start adding to existing inventory from 2010. This is not a small figure and even if one presumes a moderate figure of two people to service per room, the number of people that the sector will need to recruit is 32,000. Business travel is coming back to track and positive sentiments of consumers to spend on travel and tourism has been helping this sector sustain this momentum. This sector is likely to generate the 2nd largest number of jobs in the country in the coming days.
IT & ITES
Total Employee Base: 17,93,000 New Jobs: 97,000
Bench strength in the industry is still not used up fully. Hiring is expected to take place due to continued international demand in the IT sector. As far as ITES is concerned, domestic demand is growing though many international contracts have not yet come back to normalcy. Having dominated the job market with the greatest number of new job additions year after year, India’s IT and ITES industry is showing signs of stabilizing. Indian industry is showing signs of climbing the value chain and winning deals in knowledge-intensive applications. This sector will create a substantial amount of new jobs – 97000, the 4th largest amongst all sectors.
Real Estate & Construction
Total Employee Base: 7,30,000 New Jobs: 1,36,000
Smaller towns and suburban townships are growing with lower value housing. Infrastructure growth continues in many ways and appears to be accelerating. From unskilled site workers to highly skilled talent like engineers, foremen, crane operators, project managers and architects, this sector is expected to explode with new jobs.
Trade
Total Employee Base: 611,000 New Jobs: 13,000
Organized retail is yet to recover fully, but new entry is expected towards the latter part of the year. With improvements in consumer sentiments, this sector is likely to gather momentum towards later part of the year.
Transport, Storage & Communication
Total Employee Base: 26,38,000 New Jobs: 27,000
Economic growth will push transport forward and new jobs will get created in this segment. Storage is yet not on a high growth path. Communication sector policies such as 3G introduction are likely to aid the growth creating new jobs. This sector however has been improving its operational efficiencies in many ways thus, not creating jobs in proportion with the sector growth.
Manufacturing
Total Employee Base: 55,30,000 New Jobs: 68,000
Auto sector, light engineering, minerals and metals are expected to show some resurgence. Recent trends of increasing sales of automobiles and consumer goods are testimony of this growth. SSIs still appear to be cautious, still impacted by liquidity constraints. This sector has enhanced its productivity levels and optimized costs over the last year. The year ahead will witness growth in jobs and change in hiring trends. We will see hiring more freshers and people with specialized skills.
Employment trends – city-wise
Mumbai – Moderately down
Entertainment up, media remains affected, financial services yet to pick up significantly. Reversal of downward trend in business services; construction sector has bottomed out.
Delhi – Significantly down
Media and business services have taken a big hit. Retail has not recovered yet; financial services and construction sector see slow upturn.
Bangalore – Moderately up
Employment in IT is picking up again; retail sector remains adversely affected as players don’t add new stores. Business services continue to do well.
Kolkata – Moderately up
Signs of revival in the manufacturing and IT. However, business services remain down and media continues to remain adversely affected due to the slowdown.
Chennai – Significantly up
Manufacturing and IT are both up significantly, slight improvement in retail and financial services. Situation may improve in the next couple of quarters.
Pune – Strongly up
Movement from Mumbai to Pune has strengthened due to better infrastructure. IT and manufacturing are strongly up as economy looks up. Construction is hiring again.
Hyderabad – Strongly down
Political uncertainty has forced some companies to put plans on hold. IT, manufacturing, infrastructure and construction are all down.
Ahmedabad – Strongly up
Manufacturing sector, business services, media and transport sector all see a strong uptrend as new investments continue to flow into Gujarat.
Key findings of the report:
• HR managers and entrepreneurs quite uncertain on hiring in the short term, but see the need for significant fresh hiring sometime during the calendar year 2010.
• Policy uncertainty as well as recent experiences are supporting this uncertainty in hiring
• Overall therefore, most see very little hiring this quarter, but expect to ramp up in FY 2010-11
• Industry specific constraints are still impacting hiring in sectors such as IT and trade, though this is not expected to remain for long
• Most see the current growth levels as sustained and on an accelerating trend and expect necessity for fresh hiring
• Consensus among managers that despite rising inflation, new hiring will not be at significantly higher remuneration levels than observed currently
• Cost control seen as a constant concern across all sectors
The structured analysis was administered by India’s leading economic research firm Indicus Analytics using a quick industry analysis to ascertain the various forces that are working on companies that are affecting their intentions to hire.
Note for Editors:
Ma Foi is available to discuss specific areas highlighted in this press release, such as trend in particular sector, city etc.
About Ma Foi Employment Trends survey
Ma Foi Employment Trends Survey (MEtS) is one of the largest and comprehensive study to predict employment trends and opportunities in the organised sector for 2010. MEtS is conducted by Ma Foi Management Consultants Ltd., a Randstad company and the largest integrated HR services provider in the country. The first MEtS Survey was commissioned in November 2004 by Ma Foi.
About Ma Foi
Ma Foi, a Randstad company, is an international HR service provider servicing world class companies across the globe. Ma Foi which was started in 1992 has grown into a full spectrum HR services provider for clients worldwide. It has helped generate career opportunities for more than 2, 80, 000 individuals in 36 countries and has worked for over 250 Fortune 500 organizations.
Ma Foi offers the broadest HR services portfolio ranging from Executive Search, Staffing, Consulting and Outsourcing to Automation and Training. The services provided by Ma Foi Consulting includes, Consulting, Outsourcing, Recruitment Back office and HR statistical research. The organization has built a network of offices across the country to be within reach of candidates and flex workers.
Ma Foi continues to focus on developing customized and innovative HR services, leveraging on its unique strengths of geographical presence and end-to-end capability across all HR service functions.
About Randstad:
Randstad specializes in solutions in the field of flexible work and human resources services. Our services range from regular temporary staffing and permanent placement to inhouse, professionals, search & selection, and HR Solutions. Since acquiring Vedior in 2008, the Randstad Group is the second largest HR services provider in the world with top three positions in Argentina, Belgium & Luxembourg, Canada, Chile, France, Germany, Greece & Cyprus, India, Mexico, the Netherlands, Poland, Portugal, Spain, Switzerland and the UK, as well as major positions in Australia and the United States. End 2009 Randstad had approximately 25,500 employees working from over 4,100 branches and inhouse locations in 44 countries around the world.
Randstad generated a revenue of € 12.4 billion in 2009. Randstad was founded in 1960 and is headquartered in Diemen, the Netherlands. Randstad Holding nv is listed on the NYSE Euronext Amsterdam, where options for stocks in Randstad are also traded. For more information see www.randstad.com
Researched by Maninder
