Jobs growth up a tad in Q4 at 0.35%

Written by Raj Kumar Ray | New Delhi | Updated: Jun 15 2013, 07:54am hrs
Employment growth in the eight labour-intensive sectors grew by 0.35% quarter-on-quarter during January-March 2013, from 0.24-0.28% in the previous three quarters, on the back of some uptick in select sectors like jewellery, auto and leather industries.

However, employment growth during the entire FY13 was at 1.14%, lagging the 1.77% in FY12, as the overall economic growth slumped to a decades low of 5% last year from 6.2% in 2011-12, following a dismal industrial growth and decline in exports. The employment growth rates in the two previous fiscals were over 2.6% as the economy was growing faster.

The overall increase in employment during 2012-13 was 3.48 lakh, said the latest quarterly survey on 2,344 units covering textiles, handloom, leather, metals, automobiles, jewellery, transport and IT/BPO sectors employing a little over 3 crore workers. These sectors generated 8.37 lakh jobs during 2011-12, and 9.79 lakh jobs during 2010-11, when the economy grew by 9.3%.

At the sectoral level, textiles generated 1.4 lakh employment in 2012-13, followed by IT/BPO with 1.19 lakh jobs, metals generated 39,000 and automobiles 22,000 jobs.

The survey revealed that the latest quarter of 2012-13 has experienced an increase of 107,000 in employment, an increase of 0.35% quarter-on-quarter, the survey said. This was slightly higher than 0.28% in the two previous quarters and 0.24% in first quarter of 2012-13.

During January-March, the gems and jewellery sector grew the fastest by 1.5% quarter-on-quarter, followed by leather (0.58%), auto (0.42%) and IT/BPO (0.36%).

Of the total 3.48 lakh jobs created in 2012-13, about 2.86 lakh were direct employment and the remaining 62,000 were contractual jobs.

Export-oriented units generated 1.94 lakh jobs, or 56%, of the fresh jobs during 2012-13, with textile exporting companies hiring 1.13 lakh workers followed by IT/BPO sector with 41,000 new jobs.