Notwithstanding the Modi government’s ambitious plans for job creation, the pace of new employment in the organised sector is hardly encouraging. On a sequential basis, the January-March 2015 quarter saw only a marginal increase of 64,000 in jobs. If the January-March quarter last year, when some 36,000 jobs were lost, is excluded, the first quarter of this year fared the worst in terms of job creation at least in the two years to March, 2014, according to data from the Labour Bureau.
The decline in job growth in the latest quarter reviewed is mainly due to the sharp fall in new jobs in the textiles sector, one of the pillars of India’s manufacturing industry and a very labour-intensive one, and the slowing of job creation in the IT/BPO space.
The bureau, attached to the labour ministry, took 2,013 samples spread across eight sectors — textiles, leather, metals, automobiles, gems and jewellery, transport, IT/BPO and handlooms — for preparing the quarterly report.
Though the bureau comes out with mostly organised-sector data, the quarterly report also includes a small segment of unorganised sector, mainly handloom weavers. As far as the textile sector is concerned, 69,000 new jobs were created in April-June, 2014; 49,000 in the July-September; and 79,000 in the three-month period ended December, 2014. As compared to these, during the January-March quarter, the number came down to 24,000, partly due to the seasonal decline in the garment sector but also impacted by the slump in exports. Similarly, in the IT/BPO space, job creation increased from 51,000 in April-June; 2014 to 57,000 in July-September, 2014; and to 89,000 in October-December, 2014. However, it plummeted to just 37,000 in January-March this year. Leather, transport, gems and jewellery also fared worse than the previous quarter in the January-March period losing 8,000, 2,000 and 6,000 jobs, respectively.
“Employment under the direct category workers has increased by 15,000 during the period March, 2015 over December, 2014 at the overall level. The major increase in employment under direct category of workers is observed in IT/BPOs sector at 41,000 followed by automobile sector at 22,000 and metals sector at 8,000,” the bureau said.