Job generation drops 20 pc in July-September: Assocham

Written by PTI | New Delhi | Updated: Oct 30 2014, 17:24pm hrs
Job generation in the Indian industry dropped sharply by 19.9 per cent during the July- September quarter copared to previous three-month period due to persisting Job generation in the economy, said today.

The industry body said IT, infrastructure, hospitality and aviation sectors reported

"Signs of weaknesses in global economy and slow recovery in industrial output in the Indian economy appear to be weighing on the minds of corporates in their hiring plans," it said adding as many as 23 of 32 sectors monitored by the Assocham posted decline in job postings.

It also said that during July-September, Delhi/NCR emerges as a leading jobs generating centre in India.

"Amidst persisting weaknesses in the economy, job generation in India Inc saw a sharp drop of 19.9 per cent during July-September," it said.

The city has generated 28,192 jobs during the quarter as against 46,652 jobs during April-June 2014, it said.

Further Bangalore, Mumbai and Chennai centres have recorded positive growth rate of 8.23 per cent, 0.05 per cent and 25.22 per cent respectively in terms of job creation.

"While Pune, Hyderabad, Ahmedabad and Kolkata have recorded negative growth rate of 11.38 per cent, 19.05 per cent, 6.29 per cent and 14.61 per cent respectively during the same period," it said.

In sectors, the worst hits were media, insurance, pharma, retail, aviation and FMCG.

"For instance, the media saw a contraction of about 60 per cent in job postings while the troubled real estate industry reduced hiring by over 75 per cent," it said.

About 4,500 corporates across 32 sectors posted a total of 1.32 lakh jobs during the July-September 2014 period across India as against 1.65 lakh during April-June 2014, Assocham findings said.

"While the business sentiment seems to be picking up, the corporates are still not sure whether to go ahead with hiring plans. The signals from the global market point towards a slowdown and this is surely affecting hiring in the IT which drives bulk of its revenues from exports, particularly to the US, Europe, Japan," it said.