Job creation on the rise

The 2010 Ma Foi Randstad Employment Trends Survey stated that the optimism that started during the beginning of the year 2010 strengthened further in July to September and was expected to grow further during this last quarter. Employment generation has remained upbeat in most of the sectors. The movement of skilled workforce within sectors has been seen at a higher level as compared to the last quarter.
 
BSFI sector
Between July and December 2010, the BFSI sector was expected to be generating an additional employment to the tune of 40,800. Overall, recruitment by the BFSI sector was significantly higher in the third quarter of 2010 and expected to do even better in the current quarter. Banking sector indicators, namely, aggregate deposits and credit to commercial sectors, experienced a continuing substantial growth of about 15% and 17% respectively during April to September. This has acted as a big booster for the banking sector. The direct implication of this is that, recovery of the economy is reflected in requirement of increase in credit supply, to the commercial sectors. If the credit supply remains accessible at a reasonable cost, there will be a momentum in growth, resulting in significant boost for the sector and in turn generating sizable employment in the economy. Increase in micro-finance activities, as a result of growth in various sectors has also paved way to generate additional employment to the sector.

An expected annual growth of about 30% in Life Insurance industry and over 25% in Health Insurance industry by 2013-14, can play big role in creating significant number of jobs contributing to the job growth of the industry. 35% of banking staff are expected to retire as per industry estimates and this has led way to increase in fresher recruitments.

IT/ ITeS sectors
Between July and December 2010, the IT & ITES sector was expected to be generating an additional employment to the tune of 81,300. According to the Labour and Employment Ministry, Government of India, the revival of job market in India after the global recession is much to do with quick come back of the IT/ITES sector. Though the developed countries are still facing the challenge of sustaining their growth, the recovery process, especially in USA and UK has played a key role in strong recovery of the sector, which is mainly due to offshore businesses.
The September quarter results of India's top four information technology (IT) outsourcing companies underscores the fact that the demand for IT services is extremely strong. This is expected to result in increase in hiring numbers.

Increase in KPO business in recent months is also serving as a booster for the boom in the sector. CEOs of all top companies are confident of adding huge employment to the sector in the coming months. Employing new entrants has also increased in the third quarter as compared to the second. Due to a larger demand, inter-industry shifting of skilled workforce has increased significantly and the sector is experiencing substantial increase in remunerations to retain employees as well as lure them from others.

Trade, Consumer and Retail Services sector
Between July and December 2010, the Trade, Consumer and Retail Services sector was expected to be generating an additional employment to the tune of 19,400. After being severely hit by recession and suffering a huge setback in both domestic and international markets, the sector has started looking upward again.

A strong upward looking economy, coupled with the increase in income level and the festive season has also played an important role. This was reflected in a significant increase in employment during the 3rd quarter as well as expected higher addition to the employment base in the fourth quarter.

The increasing middle and upper class consumer base will increase the potential for the retail sector in India's tier II and III cities. The greater availability of personal credit and a growing vehicle population to improve mobility, will also contribute to a growing trend of annual retail sales of 11.4 per cent. The
India Retail Report for the third-quarter of 2010, forecasts that the total retail sales will grow from US$ 353 billion in 2010 to US$ 543.2 billion by 2014.

Transport, Storage and Communication sector
Between July and December 2010, Transport, Storage and Communication sector was expected to be generating an additional employment to the tune of 22,400. Telecom still remains one of the India's fastest growing sectors and continues to generate new employment opportunities across the country. Transport sector has shown significant improvement in hiring scenario compared to the previous quarters. The production of commercial vehicles has shown an impressive growth during the second quarter, which has resulted in generating employment in the transport sector.

A strong GDP growth, along with increased manufacturing and trade related activities is expected to provide an opportunity to a larger traffic movement, both in passenger and cargo. This will create the momentum for improved activity level in the transport sector, resulting in further addition of jobs to this sector.

Media & Entertainment sector
Between July and December 2010, the Media and Entertainment sector was expected to generate an additional employment to the tune of 58,200. The media sector has also grown significantly during the second quarter and is expected to grow at a higher scale in the coming months. The key reasons favouring the rapid growth of the Indian entertainment and media sector are the demographic and economic factors. With a majority of the population below the age of 35, and increasing disposable income in Indian households, the average spend on media and entertainment is likely to grow further.

Radio is expected to grow at 12.2 per cent over 2010-14 while the Internet is tipped to grow by 20.1 per cent over the next five years. Gaming is another component which is expected to grow at 25.2 per cent in the next five years. Television advertising is expected to grow 20% in 2011 and print advertising by 7%.

Large scale opportunities lie in those sub-areas that are expected to grow the fastest over the next few years, namely, in the development of digital distribution platforms for TV such as DTH, digital music platforms, digital media advertising (internet, mobile and digital signage) and global cinema content.