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Ma Foi Randstad

Employment Trends Survey


Wave 1 - 2011
in this report...

Indian Economy – on balanced growth path


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Data and Methodology
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Expected Employment Generation
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Banking, Financial Services and Insurance


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Education, Training and Consultancy
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Energy
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Healthcare
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Hospitality
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Information Technology & Information Technology Enabled Services
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Manufacturing - Machinery and Equipment
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Manufacturing - Non-Machinery Products
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Media and Entertainment
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Pharma
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Real Estate and Construction
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Trade including Consumer, Retail and Services
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Transport, Storage and Communication
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Summary and Conclusion


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Appendix
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A1 - Increase in wage bills across Sectors


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A2 - City wise total Employment
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A3 - City wise increase in Employment
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A4 - Expected Increase in wage bills across cities
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A5 - Estimated Proportion of Fresher/Experienced across Sectors (December 2010)
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A6 - Estimated proportion of Fresher and Experienced employees across Cities (December 2010)
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A7 – Estimated proportion of Fresher/Experienced across Sectors and Ownership (December 2010)
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A8 – Estimated Percentage of Work Outsourced Across Sectors (December 2010)
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The Ma Foi Randstad Employment Trends Survey (MEtS), conducted by Ma Foi Randstad, India’s No. 1 Integrated HR services company, is a
study on the Indian employment trends and opportunities. Started in November 2004, MEtS was conducted once a year, till 2008.
Considering the several dynamic shifts in employment, even within a year’s time, MEtS was therefore converted to a quarterly survey from
2010, to capture the changes in employment scenario in India from one quarter to another. The prime objective of this employment survey is
to understand the employment trends in the organized sector on a quarterly basis. The present survey has captured the employment situation
in the organized sector for the quarter of October 2010 to December 2010 and the likely scenario from January to June 2011. The study is
based on the sample survey conducted for about 650 companies across different sectors of the economy. The feedback was gathered from
the top HR personnel or from top management of the companies who could share the current and the likely scenario regarding employment
related issues. The major parameter captured in the survey is the change in hiring pattern and employee strength.

The report is divided into four sections. The first section (Section A) provides the background as well as an overview of the Indian Economy.
Section B discusses the data and methodological aspects of the study. Section C provides a picture of the changing pattern of the
employment for different sectors of the economy. This section also provides a snapshot of how the scenario is changing in select cities. The
final section (Section D) highlights key issues.
Dear Friend,

Greetings from Ma Foi Randstad!

The year 2010 saw major economies registering modest


growth and India on a balanced growth path. India story
gained primacy at the beginning of 2010, with the changing
market scenarios across the world. The growing significance of
the emerging markets like India and China, has led to many
global corporations including these countries, in their growth
and workforce strategies.

Ma Foi Randstad Employment Survey [MEtS] is an initiative to


assist the senior leaders in their workforce strategies.

At the beginning of 2010, MEtS predicted creation of 1 million


jobs in the organized sector through the year. Our year-end
METS shows creation of 1.13 million jobs across 13 industry
verticals. Healthcare, Hospitality, Real Estate, Construction, IT
and ITeS sectors played a major role in 2010 in fuelling the
growth and job creation.

For 2011, we expect the trend to continue. We estimate


creation of 1.6 million jobs across various sectors. We see a
large number of these jobs happening in the Healthcare, Non-
machinery Manufacturing, Hospitality, IT & ITeS and Real
Estate & Construction sectors.

While there is positivity in the air, we as the market leader in


the HR services industry, see the “Employability Gap” as a
challenge. I do hope that steps taken by the government and
the industry will address this issue quickly and effectively.

It is my pleasure to share with you the results of the Ma Foi


Randstad Employment Trends Survey – 1st edition of 2011.
I hope that you will find the report useful.

Look forward to your valuable feedback and inputs.

Warm Regards

E. Balaji
MD & CEO
Indian Economy
on a balanced growth path
The January 2011 update of The World Economic Outlook The Index of Industrial production (IIP) has also registered
by International Monitory Fund (IMF) has mentioned about significant higher growth during the last quarter of 2010.
improved modest growth registered by the advanced Manufacturing has improved considerably during April to
economies, which is also marked by high unemployment, December of 2010, compared to the previous quarters,
sovereign debt risks and the relative higher level of while growth in energy sector was lower compared to the
economic growth with some signs of optimism. For India, previous year. However, it is expected that a high base is
2010-11 has been a year of balanced growth. The official likely to keep the IIP growth low. Also, a somewhat volatile
overall real GDP growth rate for the first half of the year pattern of IIP growth exhibited in recent months is a cause
was 8.9 per cent. for concern. A high level of reported capacity utilization
hints towards uneven patterns in demand from large
The inflation rate continues to be high; a cause for concern infrastructure or development projects rather than usual
for the economy. However, the year on year change in the stable economic activities as the reason for fluctuations in
Wholesale Price Index was 8.4 per cent for the month of IIP growth.
December 2010, a single digit inflation rate for the fifth
consecutive month, after five months of double digit The service sector indicators reflect continuation of growth
inflation. The Consumer Price Index for industrial workers momentum. Though the external demand remained
had also dropped to single digit, which was a positive trend relatively weak, indicators related to transportation and
for the economic outlook and was much below the financial sectors look reasonable. The external trade has
expected level. gone up to US$ 27.9 billion in first half of the 2010-11
compared to US$ 55.9 billion during the corresponding
Spatial distribution of rainfall at sub-division and district period of 2009-10. However, the cause for concern is the
levels was significantly better in 2010-11 as compared to decline in gross as well as net FDI inflows. The Central
the previous year. A favourable overall condition and price Government’s fiscal position has improved during April to
environment have raised the expectation of higher December 2010 due to unexpected bonanza from 3G
production, as well as productivity for various crops in telecom spectrum sale and better collection of tax and
different parts of the country. A comfortable situation has non-tax revenues.
led to small increase in the Wholesale Price Index for
cereals, pulses, edible oils and sugar as compared to double
digit growth in Wholesale Price Index for the same period
in the previous year.

Data Sources
The study has used both primary and secondary data to arrive at different estimates. Secondary data from various
sources have been used for this study. Historical data on the manufacturing sector has been culled out from various
rounds of the Annual Survey of Industries (ASI) and publications of the Central Statistical Organization (CSO). Apart
from these sources, the others used for the study are various surveys of the National Sample Survey Organization
(NSSO), Labour Statistics of India and Statistical outline of India.

The above sources have the advantage of almost universal coverage of the organized sector within their specific
domains. However, data from most of these secondary sources are not up-to-date. Therefore the estimation
procedure, to take care of this problem, is by using up-to-date figures on sectoral Gross Domestic Product (GDP)
and Index of Industrial Production (IIP).

Once estimates of base sectoral employment was obtained, the data captured through primary survey of about 650
firms across sectors were used to arrive at estimates on different parameters. Rigorous estimation procedures were
used along with the primary survey data of the companies to estimate parameters for the fourth quarter of the year
2010 and expectations regarding the first two quarters of 2011.

Coverage of Primary Survey

Sl. No. Sector No. of companies covered

1. Banking, Financial Services and Insurance (BFSI) 50


2. Information Technology & Information Technology Enabled Services 46
3. Pharma 38
4. Healthcare 42
5. Trade including Consumer Retail Services 43
6. Energy 42
7. Transport, Storage and Communication 44
8. Real Estate and Construction 59
9. Hospitality 54
10. Media and Entertainment 39
11. Manufacturing of Non-Machinery Products 84
12. Manufacturing of Machineries and Equipment 72
13. Education, Training and Consultancy 40
estimates of The outlook is more or less stable across sectors over the
months. The optimism of early 2010 was further

employment
strengthened due to a positive economic outlook, but the
recent political developments marked with scandals have
made an impact on the overall business confidence, albeit

generation in marginal. Employment generation has remained stable and


upbeat in most of the sectors. However, continuous
inflation, price of raw materials and intermediate industrial
different sectors products, scams involving ministers and so on have created
some caution in the minds of entrepreneurs. The
movement of skilled workforce within the sector continued
during the 4th Quarter of 2010. The change in
employment across sectors is given in the table below.

The employment scenario during any specific time period


needs to be viewed from the perspective of various
activities and at several fronts, for a considerable period.
This section has presented the estimated employment
numbers with expectations for different sectors of the
Indian economy. It also lists some of the issues that might
have an impact on the employment scenario, either directly
or indirectly. This will help correlate between the trends
observed regarding employment and economic as well as
political fundamentals.

Expected Employment Increase in Different Sectors

Employment Total increase in employees Per cent increase


Entire Entire
Sectors 2011 2011
September Oct - Dec Jan - June Oct - Dec Jan - June
2010 2010 2011 2010 2011

Banking, Financial Services & Insurance 887,200 20,760 35,500 80,700 2.34% 4.00% 8.9%

Education, Training and Consultancy 9,769,600 24,400 51,800 107,500 0.25% 0.53% 1.1%

Energy 889,100 6,400 13,300 24,900 0.72% 1.50% 2.8%

Healthcare 3,313,052 64,600 125,900 248,500 1.95% 3.73% 7.4%

IT & ITeS 1,866,600 52,265 100,800 183,000 2.80% 5.25% 9.5%

Manufacturing - Machinery and Equipment 1,121,000 13,800 32,500 68,400 1.23% 2.90% 6.0%

Manufacturing - Non-Machinery Products 4,468,200 39,800 93,800 223,400 0.89% 2.10% 5.0%

Media and Entertainment 1,327,100 29,200 63,600 126,100 2.20% 4.69% 9.3%

Pharma 269,800 14,551 26,700 49,400 5.39% 9.39% 17.4%

Real Estate and Construction 808,412 50,900 85,700 144,700 6.30% 9.97% 16.8%

Trade including Consumer, Retail and Services 643,900 8,900 20,000 38,600 1.38% 3.10% 5.9%

Transport, Storage and Communication 2,664,700 17,900 33,800 93,300 0.67% 1.26% 3.5%
Estimated Increase in Employment

8.9%
80700

4.0%
35500

20760

October - December 2010 January - June 2011 January 2011 - December 2011

Banking, Financial Services The BFSI sector is expected to add 116,240


jobs in 2011.
and Insurance The stable and positive sentiment at the economic front continues
?
to help the BFSI sector to grow further during the 4th Quarter of
2010. Responses from the BFSI companies indicate that almost
similar condition will prevail during the first two quarters of 2011
as well as for the entire year. The sector is cautiously optimistic
about growth of employment numbers.
The raise of Repo and Reverse Repo rates by RBI on 25th January
?
2011 has caused an increase of Repo rate by 175 basis points and
Reverse Repo rate by 225 basis points, since March 2010. CRR has
increased by 100 basis points during the same time.
Inflation has remained a cause for concern over the past months
?
and is expected to continue for a few more months to come.
However, the response to structural causes of inflation needs to be
through reallocation of resources across sectors. Short term
measures like interest rate hikes, though manage to contain
inflation to a moderate level are not strong enough to sustain
growth. .
The recent RBI report on the Micro Finance sector has
?
recommended several checks to resolve the issues and improve
transparency. However, observations have also been made
regarding the “Recovery Culture” in the financial sector and its
adverse effects on the customers. This is an important observation
made by RBI, in view of the recent measures taken by the Andhra
Pradesh Government to regulate the recovery of loans from the
small borrowers by the MFIs. However, the drive towards financial
inclusion will certainly play a positive role in employment
generation in this sector.
Bank credit to commercial sector is increasing steadily, which is
?
one of the major driving forces for the banking sector in the
country.
Insurance sector, both life and general, has witnessed a positive
?
sentiment in the 4th Quarter as compared to the previous ones
and is expected to do better in coming months.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
907,960 943,400 988,660
Estimated Increase in Employment

1.1%
107500

0.5%
51800

24400

October - December 2010 January - June 2011 January 2011 - December 2011

Education, Training The Education, Training and Consulting sector


is expected to add 107,500 jobs in 2011.
and Consulting Education sector continued to contribute significantly to the
?
employment base of the country during the last Quarter of 2010.
The sector is expected to grow at similar rate during the first
?
couple of Quarters of 2011. However, the expectation regarding
growth for the entire calendar year of 2011 is slightly lower
compared to the first two Quarters of the year.
The regulatory ambiguity still remains the biggest impediment that
?
holds back the sector’s transformation into one of country’s
largest industry segments.
A study by KPMG projects an investment potential of US$ 100
?
billion in Education sector over the next five to six years. Going
forward, Venture Capitalists and Private Equity players will have a
role to play in the expansion of this sector.
A distinct shift can be observed in the approach of the students
?
and their parents.. The tendency to opt for job oriented education,
rather than the general educational streams, has given immense
opportunity to the private players.
Private players are currently targeting the student base at Tier II
?
and Tier III cities, in addition to the main metros. This move has
proved to be effective, since the government education
infrastructure is poor in many of these cities.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
9,794,000 9,845,800 9,901,500
Estimated Increase in Employment

2.8%
24900

1.5%
13300

6400

October - December 2010 January - June 2011 January 2011 - December 2011

Energy The Energy sector is expected to add 24,900


jobs in 2011.
The Energy sector has remained weak during 4th quarter of 2010
?
though marginal improvement was noticed as compared to the
previous quarter in terms of employment generation.
The expectations, as reported by the companies for the next two
?
Quarters, as well as for the entire 2011, show us stable growth in
employment in spite of many encouraging policy announcements.
The IIP for Electricity and Coal has posted significantly lower growth
?
rates from April to December 2010, compared to the same period
of 2009-10. Amongst the energy sub-sectors, only crude oil has
registered an impressive growth of more than 11 per cent during
April to December 2010 as compared to -1.4 per cent during the
same period of 2009-10. Petro products have also posted a positive
growth of 0.8 per cent against minus 1.2 per cent of the previous
year.
A 61% hike proposed by the Union Budget 2011-12 for the
?
Renewable Energy sector should work as a booster for the Green
Energy companies. This is mainly due to the increased thrust being
given to Solar Energy utilization under the Solar Mission. The
proposal from the Government to spend Rs. 5 billion to set up Solar,
Small Hydro and Micro Power projects in the Ladakh region of
Jammu and Kashmir may also work as a boosting factor if
implemented.
The Central Ministry of Power has set an ambitious plan of “power
?
for all by 2012”. The plan requires that the installed power
generation capacity to be increased form current 147,402 MW to
200,000 MW by 2012. This should provide some impetus to the
sector, to grow at a higher level and generate new employment
opportunities.
Funding for renewable energy projects is expected to become easier
?
in India as banks and private equity investors begin to look at clean
energy projects as viable business propositions to invest in.
With inherent advantages such as engineering talent and low-cost
?
manufacturing, India has the potential to be a leader in the clean-
technology industry. Areas of opportunity include Clean Coal
Technology and Solar Technology. The efficient building of
technologies needs power designers, energy auditors, energy
engineers and green building architects. Once the sector’s growth
path looks up, employment potentially increases.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
895,500 908,800 920, 400
Estimated Increase in Employment

7.4%
248500

3.7%
125900

64600

October - December 2010 January - June 2011 January 2011 - December 2011

Healthcare The Healthcare sector is expected to add


248,500 jobs in 2011.
Healthcare sector remains as one of the leading employment
?
providing sectors in the country contributing to more than 16% of
total estimated employment. The sector is poised to contribute
greatly to employment in next couple of quarters too.
The healthcare industry is growing at an unprecedented rate.
?
Indians are, of late,prone to lifestyle related diseases and are vying
for better amenities. The healthcare industry in India is anticipated
to reach US$ 75 billion by 2012, with a significant growth during
the next one year. This sector, thus, will continue as the major
employment generating sector in India.
Penetration of health insurance has also been providing the
?
organized healthcare sector the required boost.
Setting up new healthcare facilities in tier II and III cities in India
?
are opening up new avenues for employment generation in this
the sector.
There is no inhibiting factor regarding foreign investment in
?
healthcare industry unlike many other industries. The absence of
regulatory laws is also playing a positive role in the spreading of
the healthcare facilities across the states. Recognizing the need for
technological advances in this sector, Government has granted
many relaxations too. All these factors are boosting the growth of
the sector and in turn generating employment.
The increasing popularity of Medical tourism along with alternative
?
therapies such as Homoeopathy, Ayurveda and the similar kinds
are also providing new opportunities for job creation.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
3,377,652 3,503,552 3,626,152
Estimated Increase in Employment

3.6%
218200

1.9%
115200

49100

October - December 2010 January - June 2011 January 2011 - December 2011

Hospitality The Hospitality sector is expected to add


218,200 jobs in 2011.
Hospitality sector has again shown high and stable growth during
?
last Quarter of 2010.
The expectations as reported by the hospitality companies reaffirm
?
the optimism felt amongst the industry players. The employment
growth by the sector is expected to be further strengthened
during coming months.
A large number of approvals for new hotels and a large scale
?
investment in hotel infrastructure in the major cities as well as tier
II and tier III cities have led to creation of significant number of
jobs at all levels.
Foreign Tourist Arrivals (FTAs) in India during October to December
?
2010 was at 7.9 per cent, which was marginally lower compared
to the previous Quarter. But the sector players are optimistic about
the future.
Foreign Exchange Earnings (FEEs) from tourism had also increased
?
significantly during 4th Quarter of 2010 compared to the same
period in the previous year.
Increased demand for tourism activities, both in domestic and
?
international markets has resulted in big travel agencies and tour
operators recruiting on a large scale.
Substantial numbers of hospitality companies are trying to include
?
various tourism products within their service portfolio. This has
also accentuated hiring by these companies at all levels.
According to the players in the Hospitality sector, Meetings,
?
Incentives, Conferencing and Exhibitions (MICE) have become
major revenue generating activities for the sector. This has also
increased the need for hiring skilled manpower in this sector.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
6,111,300 6,226,500 6,329,500
Estimated Increase in Employment

9.5%
183000

5.3%
100800

52265

October - December 2010 January - June 2011 January 2011 - December 2011

Information Technology The IT & ITES sector is expected to add


183,000 jobs in 2011.
and IT & ITES sectors have remained as one of the major job providers
?

Information Technology during the 4th Quarter of 2010. The responses from the surveyed
companies suggest that the sector will keep growing in 2011 as
well.
Enabled Services According to NASSCOM, the IT-ITeS industry is India’s one of the
?
largest employment generators in the organized sector creating
jobs for over 10 million people both directly and indirectly.
The spread of the IT-ITeS sector to the tier II and tier III cities has
?
further widened the growth potential of the sector thereby
generating more employment.
Increase in number of Rural BPOs has also contributed to the
?
sector’s role in increasing employment across the country.
However, the process of geographical dispersion of the industry is
?
being adversely affected by the non-extension of the STPI scheme
and attendant tax incentives. A proactive role on part of the
government will lead to increased job creation in the sector.
Companies in this sector are consciously moving up the value
?
chain in the journey of outsourcing, to stay competitive in the
global arena. This has impacted the employment trends in this
sector
Increase in lateral job shifts among employees within the sector
?
has resulted in substantial increase in the salary levels, for the new
hires, as well as for existing employees.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
1,918,865 2,019,665 2,101,865
Estimated Increase in Employment

6.0%
68400

2.9%
32800

13800

October - December 2010 January - June 2011 January 2011 - December 2011

Manufacturing - The Manufacturing - Machinery and


Equipment sector is expected to add 68,400
Machineries and jobs in 2011.
Equipment This sector also has experienced significant growth in terms of
?
employment in the last Quarter of 2010 and also poised for
further growth in 2011.
All its sub-sectors have grown significantly during 2010-11 as
?
compared to previous year.
Machinery & Equipment (other than Transport Equipment) has
?
grown by more than 27 per cent during the first three Quarters of
2010-11, as against 15 per cent during same period of the
previous year.
Transport Equipment has grown by more than 35 per cent in
?
2010-11 as against 17 per cent during the same period of 2009-
10.
However, higher inflation remains a cause for concern for a
?
sustained long term success.
Viability gap funding for the infrastructure projects by the
?
government can play a positive role for further growth of both this
sector as well as Non-Machinery Manufacturing sector.
Continuous demand for the products in the non-machinery
?
manufacturing sector, in 2010 has provided a boost for this sector.
However, a lower growth rate of IIP in the sector in 2011 may
result in negative impact on the employment.
Higher cost of fund, if continued, may also pose a threat for the
?
growth of this sector.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
1,134,800 1,167,300 1,203,200
Estimated Increase in Employment

5.0%
223400

2.0%
93800

39800

October - December 2010 January - June 2011 January 2011 - December 2011

Manufacturing - The Manufacturing - Non-Machinery Products


sector is expected to add 223,400 jobs in
Non-machinery Products 2011.
The positive growth momentum that was witnessed during the
?
third Quarter continued during the fourth Quarter as well. This is
expected to continue in 2011 as reported by the companies
surveyed.
One of the main reasons for the early recovery of the sector in
?
India, compared to other emerging economies and developed
countries, is the market’s domestic demand rather than exports.
Sound macro-economic fundamentals and stimulus also played its
role in shaping the industry’s quick recovery.
The output of Basic Goods remained at the same level between
?
April and December 2010 compared to the previous year, while
intermediate goods showed a marginal decline.
Consumer Goods sector has again posted a high level of growth
?
of more than 21 per cent during April and December 2010
quarter.
The labour intensive industries such as Food products, Textile
?
products, Leather and related products, Rubber, Plastic, Petroleum
& Coal products etc. have shown significant growth during 4th
Quarter as well as during the entire year of 2010.
Non-Metallic Mineral Products, Metal Products & Parts (except
?
machineries and equipment) have also posted significantly high
growth compared to previous year.
All these factors together have added significant employment
?
numbers to the country’s employment base.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
4,508,000 4,601,800 4,731,400
Estimated Increase in Employment

9.3%
126100

4.7%
63600

29200

October - December 2010 January - June 2011 January 2011 - December 2011

Media and Entertainment The Media and Entertainment sector is


expected to add 126,100 jobs in 2011.
Strong growth path envisaged for the sector, is expected to
?
continue in 2011.
The employment growth in this sector was higher in the fourth
?
Quarter as compared to the previous three quarters. The responses
from the companies also indicate that it will further increase
during 2011.
Federation of Indian Chambers of Commerce and Industry (FICCI)
?
is of the opinion that the Media and Entertainment industry will
grow at a compounded annual growth rate (CAGR) of 13 per cent
by 2014.
All positive factors such as regulations that allow foreign
?
investment, the impetus from the optimistic economy, the digital
lifestyle of huge urban population of the country along with
higher disposable income and spending habits coupled with
opportunities thrown open by the advancements, are providing a
big lift to the industry.
With the foray of 3G on the Indian shores, mobile TV and gaming
?
offer a great deal of promise to this industry’s growth
Cinema opened routes for foreign investment and the grant of an
?
industry status has created a significant and positive impact for
employment generation. Entry of several foreign production
houses in recent months are also a big push to the industry’s
development.
Advertising revenues through television are expected to gross US$
?
3.12 billion by 2013. In addition, digital advertising through
Internet and mobile phones is also gaining momentum. Online
advertising is projected to reach US$ 212 million in2011. All these
developments are paving way for new job generation in the
sector.
The animation industry is poised to expand greatly. Companies,
?
such as Intel, Disney, Paramount, and Cartoon Network, are
looking to tap into this industry. This is due to the growth of
gaming and the real-time 3D sector. Employment base of this
sector is likely to increase significantly in view of these activities.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
1,356,300 1,419,900 1,482,400
Estimated Increase in Employment

17.4%
40400

9.4%
26700

14551

October - December 2010 January - June 2011 January 2011 - December 2011

Pharma The Pharma sector is expected to add 49,400


jobs in 2011.
Indian Pharma sector has been growing significantly and has
?
maintained the growth during the last quarter of 2010. The
expectations also show a large increase in employment generation
by this sector in 2011.
Contract research and contract manufacturing systems are paving
?
new opportunities for the Indian pharmaceutical market. Indian
players have the opportunity now to participate in the global
generics growth story and benefit from it. Contract manufacturing
is growing at a very fast pace and is estimated to grow to US
$30billion, whereas contract research is estimated to reach US$6-
10 billion. This will definitely play a positive role in further
employment generation by the sector.
The factors such as growing middle class population, rapid
?
urbanization, increase in lifestyle related diseases and penetration
of health insurance has led to dramatic growth in the Indian
pharmaceutical industry, which is expected to show double-digit
growth in the near future. There is also a growing demand for
skilled people in this sector, which was witnessed during the past
Quarters and is likely to continue in the future too.
Some of the companies have expressed their concern over the
?
soaring inflation and high cost of borrowing in the current year.
This may affect the growth of the industry if it continues further.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
284,351 311,051 333,751
Estimated Increase in Employment

16.8%
144700

9.9%
85700

50900

October - December 2010 January - June 2011 January 2011 - December 2011

Real Estate and The Real Estate and Construction sector is


expected to add 144,700 jobs in 2011.
Construction The stable economic growth has put the Real Estate and
?
Construction sector on the high growth path again.
Although the sector had experienced higher growth compared to
?
previous couple of years, it was still lower than the expectation of
the sector players. The prime reason behind this is that the latent
demand has not entirely translated into the actual demand in the
market.
This has led to a stable but slightly lower growth expectation in
?
terms of employment generation by the sector for the next couple
of Quarters and the sentiments for the year 2011 are a bit muted.
However, the Construction sector remained a big booster for the
?
employment growth. The investment in construction sector
accounts for 11% of India’s GDP and nearly 50% of India’s Gross
Fixed Capital Formation.
Since Construction sector accounts for about 65% of the total
?
investment in Infrastructure, it is expected to be the biggest
beneficiary. Due to the infrastructure development drive that the
country is currently witnessing, this sector is expected to generate
substantial number of jobs in the country.
Higher level of retail and hospitality related activities are also
?
expected to contribute to employment generation.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
859,312 914,500 1,004,022
Estimated Increase in Employment

5.6%
38600

3.1%
20000

8900

October - December 2010 January - June 2011 January 2011 - December 2011

Trade including The Trade including Consumer, Retail and


Services sector is expected to add 38,600 jobs
Consumer Retail Services in 2011.
This sector was on a higher growth path during 4th quarter of
?
2010, compared to the previous quarters. The expectations of the
companies depict, that during next couple of quarters and as well
as during the entire year 2011 strong growth trend will be
maintained on view of higher growth in international trade and
buoyant domestic market. .
The total retail sale in India is estimated at US$ 392.63 billion for
?
2011 and is expected to reach US$ 674.37 billion by 2014. Strong
economic growth, population expansion, increasing wealth of
middle income group and rapid construction of organised retail
infrastructure are the triggers for the significant growth witnessed
by this sector. With the expanding middle and upper class
consumer base, there will be substantial opportunities for the
sector in India’s tier II and III cities.
Entry of global companies and expansion of their chains in
?
different parts of the country has also been an encouraging factor
for this upbeat sentiment. Carrefour, the world’s second-largest
retailer, has opened its first cash-and-carry store in New Delhi.
Germany-based wholesale company Metro Cash & Carry (MCC)
opened its second wholesale centre at Uppal in Hyderabad, taking
its number of stores to six in the country. All such activities are
increasing the future potential for the sector and creating
opportunities for new employment generation across regions.
Higher growth in world economy, especially in the developed
?
countries in 2010, as compared to the previous year has raised the
activity levels in this sector. India’s export has grown by more than
26 per cent between April and December 2010 and import has
grown by 24 per cent during the same period, which raises
immense hope for the sector. Increase in international trade will
further raise employment by this sector. During 2010-11 India’s
export has grown by more than 26 per cent during April to
December 2010 and import has grown by 24 per cent during the
same period which raises hope for the sector.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
652,800 672,700 691,420
Estimated Increase in Employment

3.5%
93300

1.3%
33800

17900

October - December 2010 January - June 2011 January 2011 - December 2011

Transport, Storage and The Transport, Storage and Communication


sector is expected to add 93,000 jobs in 2011.
Communication Led by communication, this sector has again performed strongly
?
during 4th Quarter of 2010.
As reported by the companies surveyed the expectations for the
?
next couple of quarters and for the entire 2011 remain optimistic.
New telephone connections have grown by about 13 per cent,
?
compared to previous year. The flexibility in terms of number
portability is expected to increase the competition further,
amongst the service providers and in turn will lead to higher
employment generation in the coming months.
The transportation sector has shown a mixed pattern. The revenue
?
earning goods traffic by railways was higher by 2.5 per cent
during the fourth quarter of 2010 as compared to previous
quarter. Total railway traffic has grown by 3.2 per cent from April
to December 2010.
Though railway sector has shown some improvement, the port
?
sector has not picked up the growth momentum yet. The volume
of Cargo traffic has grown by only 1.1% during first three
Quarters of 2010-11 compared to the previous year.
Road transport and Civil Aviation sectors have witnessed strong
?
growth momentum between April and December 2010.
Increased activity in logistics related industries is another big
?
booster for employment growth in this sector.

Estimated Expected Expected


December 2010 June 2011 December 2011
Total No. of Jobs
2,682,600 2,716,400 2,775,900
city-wise employment outlook
Ahmedabad Delhi & NCR
Hiring activities continued during the fourth Quarter of 2010, but Significant hiring has taken place during the fourth quarter of 2010
at a lower level of less than 5%. According to the expectations of also. This is likely to continue in 2011 at further higher rate. The
the companies covered under the survey, during 2011, the total new employment expected during the current year should be
employment generation may be slightly lower than that of 2010. higher than compared to 2010. Almost every sector has registered
The sectors that performed well in terms of employment generation high growth regarding employment generation. Amongst them
are Education, Machinery and Non-Machinery manufacturing, IT&ITES, Healthcare, Real Estate & Construction, Education, Training
Hospitality, Healthcare, Trade including CRS and IT&ITES. & Consulting and Trade including CRS are worth mentioning.

Bangalore Hyderabad
Bangalore has witnessed continuous growth in terms of Positive growth momentum in hiring activities continued during the
employment generation for the fourth Quarter of 2010. A higher fourth quarter of 2010.
level of employment generation in 2011, compared to 2010 is
expected in this city. Almost all sectors have posted good growth Though Hyderabad has shown increasing hiring activities in the past
contributing to the city’ employment base. The expectation as months, the expected employment generation in the city during
reported by the companies suggests further growth during 2011. 2011 may be marginally lower than that of 2010.

Most of the sectors have shown substantial growth in employment.


Chennai Amongst those IT&ITES, Pharma, Healthcare, Trade including CRS,
Hospitality, Energy & Infrastructure, Transport, Storage &
Hiring was marginally lower during the fourth Quarter of 2010 as Communication are the leading ones.
compared to expectations. However, a significant number of jobs
were generated during the period compared to the previous year
and the initial Quarters of 2010. Chennai is expected to experience
Kolkata
a higher level of recruitment activity in 2011, compared to 2010. After showing a stable trend in employment growth, Kolkata is
The major driving sectors were BFSI, Trade including CRS, expected to follow similar employment generation in 2011. Though
Healthcare, Real Estate and Construction, Media & Entertainment, the economy is looking positive, in view of upcoming assembly
Manufacturing and Education, Research & Consulting sectors. elections, the sector players are adopting a wait and watch policy
Positive momentum is expected in 2011 but at a slightly lower 2011. Banking, IT&ITES, Pharma, Trade including CRS, Real Estate &
growth rate. The upcoming State Assembly election might be one Construction, Transportation, Storage & Communication,
reason, that has restricted the companies from speculating. Hospitality and Manufacturing of Machinery and Equipment are the
Jan - Dec 2011 leading sectors in terms of employment generation.
102,884 Jan - Dec 2011
102,616 Mumbai
42,567
38,648 Mumbai also witnessed high growth in employment during the
fourth quarter of 2010. The hiring activities are expected to be
better in 2011. BFSI, IT&ITES, Transport, Storage & Communication,
Real Estate & Construction, Media & Entertainment and Education,
Training and Consulting are the leading sectors to contribute to
Mumbai’s employment base.

Pune
Jan - Dec 2011
68,134 The strong positive growth momentum in hiring activities continued
in Pune during the fourth quarter of 2010. In the year 2011, Pune is
30,534 expected to continue the same growth trajectory it exhibited during
60,317 63,968 2010.. Though hiring took place across most of the sectors, IT&ITES,
Media & Entertainment, Manufacturing of Machinery & Equipment
and Education, Training & Consulting sectors have witnessed higher
level of activitycompared to the other sectors.

37,600

July - December 2011


Jan - Dec 2011 January - June 2011
31,759 October - December 2010

16,368

Jan - Dec 2011


20,794
28,101 Jan - Dec 2011
25,251 24,897 15,391 9,535 14,720 Jan - Dec 2011
13,489
8,278 Jan - Dec 2011
5,777
11,259 7,527
25251 6,442 7,712 3,636
9,393 2,178
3,891
4,356 4,554 3,818
Mumbai Delhi & NCR Chennai Kolkata Bangalore Pune Hyderabad Ahmedabad
Summary and Conclusion
This Ma Foi Randstad Employment Trends Survey (MEtS) has covered employment generation and other employment related
aspects during the 4th Quarter of 2010 and has alongside captured the expectations with regard to employment
opportunities for the first two Quarters as well as for the entire year 2011.

Ma Foi Randstad Employment Trends Survey for the 1st Quarter 2010 had presented a growing sense of optimism spreading
across sectors and cities. However, the optimism was shadowed with concerns regarding the sustainability of the growth. The
subsequent reports for 2nd and 3rd Quarters showed that with the strengthening of the economy the optimism of the initial
months of 2010 had grown further and was translated into higher level of hiring activities for most of the sectors and
locations. A stable upward growth coupled with several government stimuli to boost the economy created positive
sentiments and the industry sectors were optimistic.

The current survey report also asserts that industries are confident of a stable growth of the economy and expect the same to
continue in 2011. The inter-industry movement of manpower will gain momentum along with new hiring activities at the
entry level.

The employment base of almost every sector has grown substantially during the fourth Quarter of 2010 and is showing signs
of further stable growth in 2011. Healthcare, Hospitality, IT & ITES, Education, Training and Consulting, Manufacturing
sectors are amongst the key sectors contributing to India’s employment base.

The top sectors that are likely to generate more than 200,000 jobs in 2011 are Hospitality, Real Estate & Construction, IT &
ITeS and Media & Entertainment. In terms of growth percentage, we find that Pharma, Real Estate & Construction, IT & ITeS,
Media 7 Entertainment and BFSI sectors are likely to occupy the top slots. Energy is relatively a weak performer compared to
other sectors.

The employment has shown an increasing trend in most of the cities covered in the survey. Bangalore, Pune, Delhi & NCR and
Mumbai have shown substantial increase in their employment base. The current survey estimation suggests that a total
number of 1.6 million jobs are expected to be added to the employment base of the country during the year 2011.
Appendix
Estimated Average Estimated Average Expected Average
Expected Average
A-1: Increase in Wage Bills across Sectors Increase during Increase during Increase during First
Increase during 2011
3rd Quarter of 2010 4th Quarter of 2010 Two Quarters of 2011

Banking, Finance Services & Insurance 3.10 % 3.60 % 6.20 % 11.20 %


Education, Training and Consultancy 2.90 % 3.23 % 7.56 % 10.76 %
Energy 3.10 % 2.32 % 5.18 % 8.82 %
Healthcare 2.90 % 3.84 % 6.52 % 10.39 %
Hospitality 3.00 % 3.10 % 5.90 % 10.00 %
Information Technology & Information Technology Enabled Services 3.20 % 2.47 % 6.50 % 12.40 %
Manufacturing - Machinery and Equipment 3.10 % 3.12 % 5.72 % 10.16 %
Manufacturing - Non- Machinery Products 2.30 % 2.40 % 5.64 % 10.48 %
Media & Entertainment 2.80 % 2.80 % 6.45 % 11.19 %
Pharma 3.80 % 2.50 % 6.60 % 11.20 %
Real Estate and Construction 3.70 % 3.12 % 5.83 % 10.32 %
Trade including Consumer, Retail and Services 3.00 % 3.80 % 7.60 % 12.81 %
Transport, Storage and Communication 3.10 % 3.62 % 6.96 % 10.99 %

Estimated Estimated Estimated Expected Expected


A-2: City-wise Total Employment Employment Employment Employment Employment Employment
December 2009 September 2010 December 2010 June 2011 December 2011

Ahmedabad 37,555 44,287 46,465 50,355 53,992


Bangalore 103,705 117,245 121,602 132,860 142,395
Chennai 308,329 347,417 372,314 409,914 440,448
Delhi & NCR 491,411 561,125 586,376 650,344 688,992
Hyderabad 71,267 85,516 89,334 97,045 102,823
Kolkata 140,807 161,354 170,747 186,137 202,505
Mumbai 558,464 627,210 655,311 715,627 758,195
Pune 50,752 62,051 66,605 73,048 81,325

Growth Rate
Jan - Sep Oct - Dec Jan - Dec Jan - June Jan - Dec
A-3: City-wise Increase in Employment Oct - Dec Dec 2010 - During
2010 2010 2010 2011 2011
2010 (%) June 2011 (%) 2011 (%)

Ahmedabad 6,732 2,178 8,910 3,891 7,527 4.92 8.79 16.20


Bangalore 13,540 4,356 17,897 11,259 20,794 3.72 9.60 17.10
Chennai 39,088 24,897 63,985 37,600 68,134 7.17 10.82 18.30
Delhi & NCR 69,714 25,251 94,965 63,968 102,616 3.46 11.40 17.50
Hyderabad 14,249 3,818 18,067 7,712 13,489 4.46 9.02 15.10
Kolkata 20,517 9,393 29,910 15,391 31,759 5.82 9.54 18.60
Mumbai 68,746 28,101 96,847 60,317 102,884 4.48 9.62 15.70
Pune 11,299 4,554 15,853 6,442 14,720 7.34 10.38 22.10

Estimated Average Expected Average


Expected Average
A-4: Expected Increase in Wage Bills across Cities Increase in Increase in
Increase in 2011
4th Quarter of 2010 First Two Quarters of 2011

Ahmedabad 3.1 % 5.7 % 10.6 %


Bangalore 3.7 % 5.9 % 11.1 %
Chennai 3.3 % 6.1 % 10.7 %
Delhi & NCR 4.1 % 7.2 % 12.1 %
Hyderabad 3.3 % 5.8 % 10.8 %
Kolkata 3.7 % 6.5 % 10.6 %
Mumbai 3.3 % 6.9 % 10.7 %
Pune 3.7 % 6.8 % 12.4 %

A-5: Estimated Proportion of Fresher/Experienced


Proportion of Fresher (%) Proportion of Experienced (%)
Manpower across Sectors, December 2010

Banking, Finance Services & Insurance 47.32 % 52.68 %


Education, Training and Consultancy 62.54 % 37.46 %
Energy 44.35 % 55.65 %
Healthcare 56.70 % 43.30 %
Hospitality 70.94 % 29.06 %
Information Technology & Information Technology Enabled Services 48.07 % 51.93 %
Manufacturing – Machinery and Equipment 57.72 % 42.28 %
Manufacturing - Non- Machinery Products 55.53 % 44.47 %
Media & Entertainment 63.35 % 36.65 %
Pharma 47.72 % 52.28 %
Real Estate and Construction 57.11 % 42.89 %
Trade including Consumer, Retail and Services 65.70 % 34.30 %
Transport, Storage and Communication 67.87 % 32.13 %

Note: Fresher is considered as less than 3 years of experience


A-6: Estimated proportion of fresher and
Proportion of Fresher (%) Proportion of Experienced (%)
Experienced Employees across Cities

Ahmedabad 55.64 % 44.36 %


Bangalore 55.37 % 44.63 %
Chennai 58.97 % 41.03 %
Hyderabad 59.29 % 40.71 %
Kolkata 57.29 % 42.71 %
Mumbai 53.31 % 46.69 %
Pune 64.75 % 35.25 %
Delhi NCR 51.85 % 48.15 %

Note: Fresher is considered as less than 3 years of experience

Public Limited Private Limited


A-7: Estimated Proportion of Fresher/Experienced
across Cites and Ownership, December 2010 Proportion of Proportion of Proportion of Proportion of
Fresher (%) Experienced (%) Fresher (%) Experienced (%)

Ahmedabad 62.31 % 37.7 % 53.9 % 46.1 %


Bangalore 54.31 % 45.7 % 55.5 % 44.5 %
Chennai 62.77 % 37.2 % 57.9 % 42.1 %
Hyderabad 59.74 % 40.3 % 59.1 % 40.9 %
Kolkata 72.50 % 27.5 % 54.1 % 45.9 %
Mumbai 40.93 % 59.1 % 64.4 % 35.6 %
Pune 73.96 % 26.0 % 63.3 % 36.7 %
Delhi NCR 40.02 % 60.0 % 54.6 % 45.4 %

Note: Fresher is considered as less than 3 years of experience

A-8: Estimated Percentage of Work Outsourced Across Sectors, December 2010 Percentage of work outsourced

Banking, Finance Services & Insurance 11.2 %


Education, Training and Consultancy 17.2 %
Energy 7.0 %
Healthcare 5.9 %
Hospitality 13.0 %
Information Technology & Information Technology Enabled Services 16.7 %
Manufacturing -Machinery and Equipment 16.1 %
Manufacturing - Non- Machinery Products 15.3 %
Media & Entertainment 10.1 %
Pharma 6.2 %
Real Estate and Construction 17.6 %
Trade including Consumer, Retail and Services 15.0 %
Transport, Storage and Communication 17.8 %
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