While the world feels the pressure of a global slowdown, India Inc is still optimistic about the future. This is reflected in its hiring plans. Corporate India is expected to continue employing people in the next four months, putting India in the No 1 spot among 33 countries in terms of hiring, the latest Manpower Employment Outlook survey has revealed.
The study, done among 5,000 employers in the country, shows that almost 50% companies plan to add people on their rolls by December 2008, while only 2% expect to reduce intake. Even though India’s net employment outlook—a measure of the job market which the survey calculates by looking at a number of variables—has weakened by two percentage points since the last quarter, it has remained relatively robust so far. The mood is more buoyant among companies in the south with the net employment outlook at 46% as against 43% in the north. Among sectors, mining and construction will see the maximum growth in the coming months. The employment outlook in these sectors is as high as 54% and companies expect to both create and fill up vacancies. As most public-private partnership deals take shape on ground, this sector will see a boom. The mining industry in India has been growing at 5% since 2002 and is expected to touch $30 billion by 2012. Construction is the second largest economic activity after agriculture.
Survey has revealed that Indian companies are the world’s top recruiters. As investment in infrastructure goes up, construction will be the biggest beneficiary in the next five years.
Following close behind is the service sector, which, too, is expected to see brisk hiring in the coming months. The employment outlook stands at a high 47% although the sector has seen a 11% dip since last year. This is because of a slowdown in the IT/ITES, aviation, hospitality, travel and tourism sectors due to inflationary pressures. Telecom, however, will continue to fuel growth in services.
Finance, insurance and real estate sectors, too, will hire, but lesser than earlier. In fact, these sectors together have seen the maximum dip of 23% points, the steepest in the past six quarters, with most of the slowdown coming in finance. Manufacturing, on the other hand, has managed to hold its own, with auto ancillary and machinery units fuelling the growth.