There has been a lot of talk around the issue of unemployment in India. But there is good news for people looking for jobs. According to a report, India is expected to add 11.5 lakh jobs in the first six months (April-September) of the fiscal year 2019-20. The report also says that 57 per cent of the industries are expected to see an increase in their net employment outlook.
With four per cent rise in the net employment outlook, travel and hospitality and BPO/ITeS are leading the optimism. The reason for such a positive outlook is attributed to the increase in investments, revised FDI regulations and the new governance policies across sectors. Power, energy and logistics are the second leading industries in net employment outlook with three per cent.
As the report suggests, 11 out of 19 industries covered in the survey are expected to witness an increase in the net employment outlook. Some sectors, such as retail, logistics, educational services and fast-moving consumer goods and durables (FMCG&D) are alone going to add about 1.66 lakh, 1.49 lakh, 1.17 lakh and 1.10 lakh jobs, respectively.
The worrying part is that eight sectors, including marketing and advertising, telecommunications, agriculture, KPO, healthcare and pharma, will see a decrease in the net employment outlook.
The net employment rate had seen a drop of two per cent in the last half year, but the positive business outlook created by the stock market rally and increased investment have changed the figures. Now, in the current half year the net employment outlook has seen a three per cent increase.
If we look at this from the geography point of view, the net employment outlook is very much positive. Tier-2 cities are expected to see a heavy increase of five per cent in the hiring sentiments, following Tier-3 and rural areas, where hiring is expected to increase by two per cent each.
As per the report, jobs across all levels will gain from the optimism, but freshers will gain the most, because 17 per cent jobs, which will be created in the first half of FY19 will be for freshers.
Now, if we break it down city wise, out of the 11,44,286 jobs which will be created, a majority of these roles will appear across Mumbai (1,67,585), Delhi (1,59, 051) and Bangalore (1,50,120).
From the city drilldown point of view, the net employment outlook witnesses a mixed bag with seven out of 14 cities showing a negative sentiment. Cities such as Pune, Coimbatore and Indore are showing an increase in the net employment outlook at five per cent, four cent and four per cent respectively. On the other hand, Kochi and Gurgaon with minus four per cent each are on the decline.
As per the size of the business, the report estimates an increase in hiring of five per cent in medium-sized businesses. Large and small-sized enterprises are also expected to see an increase in hiring sentiments of two per cent and one per cent each.
The net employment outlook will increase by five per cent in the medium-sized business and large businesses report an outlook growth which will see an increase of two per cent.
Analysing the attrition level, out of the 19 sectors covered by the survey, five sectors have seen a drop in the attrition level, namely agriculture and agrochemicals, educational services, FMCG&D, financial services, and retail in April-September 2018-19 as compared to October-March, 2018-19.
On the other hand, the level of attrition increased in five sectors, such as agriculture and agrochemicals, educational services, FMCG&D, financial services, and retail. Attrition level at BPO/ITeS and e-commerce & tech start-ups stands at 19.12 per cent and 16.17 per cent respectively.
The survey was done by a staffing and recruitment company, called TeamLease, which covered 775 Indian enterprises and analysed functional and environmental aspects across 19 sectors for evaluating employment outlook trends.