Employment Trends Survey - New Jobs India |
| March 10, 2010 |
| 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:
|
| 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. |
Wednesday, June 30, 2010
Employment Trends Survey - New Jobs India - Detailed View
Time to reinvent work
Even if you are an employee with a job description and set hours, today’s employer expects you to be entrepreneurial. You are expected to come up with ideas and take initiative.
The job, as we knew it, is dead. That’s from Eamon Kelly of Global Business Network. I agree: we need to find new ways to think and talk about work. The concept of job was one of the stickiest ideas of the 20th century. Essentially invented by Henry Ford and others, the job gradually became synonymous with the timeless concept of toil.
A job was not necessarily fun. It did not have to be rewarding. You put in your time and you got paid. Jobs were for life. Jobs were acquired, learned and performed until we retired. Obviously, those ideas are no longer valid.
Consequently, we need to change expectations, and prepare our young people for the new world. Let’s look at two real-life examples. On one hand, take a bright graduate from IIT or IIM. Tell him he has to earn a living, but he cannot take a full-time job. Is the new graduate prepared to make his way without the prospect of traditional employment?
In contrast, take a kid who may have failed SSC or HSC but has spent time behind the cash counter of his father’s kirana shop. The kid is more likely to have the basic skills and mindset to be an entrepreneur or independent contractor or freelancer — and be better suited to survive in the new world where jobs are going the way of dinosaurs.
The 21st century requires people who are useful, not just employable. Charles Handy came up with the idea of an inverted doughnut: the company’s core activities represent the doughnut and the hole represents various partners. Companies and governments are becoming flexible and agile by concentrating on their core activities and outsourcing the rest.
It’s like when you build a website: put up what you do best, and link to the rest. Organisations today demand specialised partners who are experts in their own fields and are able to collaborate and co-create innovative outcomes.
Work, whether in a company or outside, demands more creativity and mastery than traditional jobs. Fittingin,anddeliveringincrementalimprovements,isno longer enough. Studies show that more than half the workers that UK companies employ are not traditional employees.
This trend is going to continue all over the world. Even if you are indeed an employee with a job description and set hours and a salary and benefits, today’s employer still expects you to be entrepreneurial. You are expected to come up with ideas and take initiative. Individuals need to step out of their comfort zones.
In the past, a degree from a reputed college was likely to guarantee life-long success. Now, this is at best just an entry permit — not a green card. Professionals and managers in the 21st century must constantly challenge their team members and themselves to deliver morewithless.
They need to take responsibility not only for outputs,but also for outcomes.In order to do so,they need the commitment and access to continuous learning. The 21st century worker is a perpetual learner, eager collaborator and a committed contributor.
We need to recognise that India, having skipped the Industrial Age, has always been different. Less than 6% of the country’s 500 million workers are employed in the organised sector. Most of those employed are in the government or public sector. Close to 60% of Indian workers are in agriculture, due to lack of alternate employment. Schemes like the National Rural Employment Guarantee plan touch only 10% of this segment.
How, then, do we empower and equip the Indian worker to be productive and gainfully employed in the 21st century? First, we need to recognise that with 60% of our population in rural areas, we need to create employment opportunities closer to home for our youth.
The 21st century is likely to see the emergence of the Deep Economy, as Bill McKibben calls it — the self-sufficient village economy that Mahatma Gandhi envisioned. A cluster of villages produces food, goods and services based on local resources.
Those local products and services are mostly consumed locally, reducing the pollution caused by transportation. Our governments —from local to regional to national — need to support this local economy with better village infrastructure and connectivity. One way to start would be to empower the Panchayats with adequate powers and funds.
Second, educational and research institutions need to focus on creating and supporting designers and innovators creating appropriate technologies based on renewable materials and energy sources. The focus needs to shift from using our educational degrees as passports tohigh-paying,investmentbanking-typejobs.Instead, we need to focus on encouraging graduates perform meaningful work in their own chosen disciplines.
Third, private enterprise and public-private partnerships must provide all workers with just-in-time training in specific areas of work. We need to give people the chance to retrain themselves in emerging areas of work. Most people are going to be either self-employed or work in small organisations; basic business and financial skills should be imparted starting in school and continuing till joining the workforce — and beyond.
Fourth, banks and financial institutions should probably operate through local front-end organisations to provide financial, accounting and other logistical support to small businesses. These front-end organisations would be both local and industry-specific to provide effective service to the businesses.
The Next Age — what I call the Connected Age — is likely to see a massive shift in the nature of corporations and, more importantly, the nature of work. Forget the Industrial Age paradigm of spending your life in a dull, meaningless job that employs only a part of you.
Forget chasing a career that stresses you out. Tomorrow’s children are likely to have the opportunity to pursue their true calling, looking at work as a means to fulfill one’s dreams and making an impact on the world around us.
Even if you are an employee with a job description and set hours, today’s employer expects you to be entrepreneurial. You are expected to come up with ideas and take initiative.
The job, as we knew it, is dead. That’s from Eamon Kelly of Global Business Network. I agree: we need to find new ways to think and talk about work. The concept of job was one of the stickiest ideas of the 20th century. Essentially invented by Henry Ford and others, the job gradually became synonymous with the timeless concept of toil.
A job was not necessarily fun. It did not have to be rewarding. You put in your time and you got paid. Jobs were for life. Jobs were acquired, learned and performed until we retired. Obviously, those ideas are no longer valid.
Consequently, we need to change expectations, and prepare our young people for the new world. Let’s look at two real-life examples. On one hand, take a bright graduate from IIT or IIM. Tell him he has to earn a living, but he cannot take a full-time job. Is the new graduate prepared to make his way without the prospect of traditional employment?
In contrast, take a kid who may have failed SSC or HSC but has spent time behind the cash counter of his father’s kirana shop. The kid is more likely to have the basic skills and mindset to be an entrepreneur or independent contractor or freelancer — and be better suited to survive in the new world where jobs are going the way of dinosaurs.
The 21st century requires people who are useful, not just employable. Charles Handy came up with the idea of an inverted doughnut: the company’s core activities represent the doughnut and the hole represents various partners. Companies and governments are becoming flexible and agile by concentrating on their core activities and outsourcing the rest.
It’s like when you build a website: put up what you do best, and link to the rest. Organisations today demand specialised partners who are experts in their own fields and are able to collaborate and co-create innovative outcomes.
Work, whether in a company or outside, demands more creativity and mastery than traditional jobs. Fittingin,anddeliveringincrementalimprovements,isno longer enough. Studies show that more than half the workers that UK companies employ are not traditional employees.
This trend is going to continue all over the world. Even if you are indeed an employee with a job description and set hours and a salary and benefits, today’s employer still expects you to be entrepreneurial. You are expected to come up with ideas and take initiative. Individuals need to step out of their comfort zones.
In the past, a degree from a reputed college was likely to guarantee life-long success. Now, this is at best just an entry permit — not a green card. Professionals and managers in the 21st century must constantly challenge their team members and themselves to deliver morewithless.
They need to take responsibility not only for outputs,but also for outcomes.In order to do so,they need the commitment and access to continuous learning. The 21st century worker is a perpetual learner, eager collaborator and a committed contributor.
We need to recognise that India, having skipped the Industrial Age, has always been different. Less than 6% of the country’s 500 million workers are employed in the organised sector. Most of those employed are in the government or public sector. Close to 60% of Indian workers are in agriculture, due to lack of alternate employment. Schemes like the National Rural Employment Guarantee plan touch only 10% of this segment.
How, then, do we empower and equip the Indian worker to be productive and gainfully employed in the 21st century? First, we need to recognise that with 60% of our population in rural areas, we need to create employment opportunities closer to home for our youth.
The 21st century is likely to see the emergence of the Deep Economy, as Bill McKibben calls it — the self-sufficient village economy that Mahatma Gandhi envisioned. A cluster of villages produces food, goods and services based on local resources.
Those local products and services are mostly consumed locally, reducing the pollution caused by transportation. Our governments —from local to regional to national — need to support this local economy with better village infrastructure and connectivity. One way to start would be to empower the Panchayats with adequate powers and funds.
Second, educational and research institutions need to focus on creating and supporting designers and innovators creating appropriate technologies based on renewable materials and energy sources. The focus needs to shift from using our educational degrees as passports tohigh-paying,investmentbanking-typejobs.Instead, we need to focus on encouraging graduates perform meaningful work in their own chosen disciplines.
Third, private enterprise and public-private partnerships must provide all workers with just-in-time training in specific areas of work. We need to give people the chance to retrain themselves in emerging areas of work. Most people are going to be either self-employed or work in small organisations; basic business and financial skills should be imparted starting in school and continuing till joining the workforce — and beyond.
Fourth, banks and financial institutions should probably operate through local front-end organisations to provide financial, accounting and other logistical support to small businesses. These front-end organisations would be both local and industry-specific to provide effective service to the businesses.
The Next Age — what I call the Connected Age — is likely to see a massive shift in the nature of corporations and, more importantly, the nature of work. Forget the Industrial Age paradigm of spending your life in a dull, meaningless job that employs only a part of you.
Forget chasing a career that stresses you out. Tomorrow’s children are likely to have the opportunity to pursue their true calling, looking at work as a means to fulfill one’s dreams and making an impact on the world around us.
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