Employment rate for the first quarter of the current financial year saw a 33% jump against the same period in the year-ago period, making it the best performing quarter for the organised sector in the last three years, data compiled by the Labour Bureau shows.
Even on a quarter-on-quarter basis, there was a 23.5% growth in the job creation data compared with the previous quarter (Q4FY11).
According to the data, the growth in Q1FY12 happened despite a sharp dip in employment numbers in sectors like IT/BPO, automobiles and transport.
However, on a year-on-year basis, IT/BPO jobs witnessed a 27% growth with 1.64 lakh new jobs, thus cornering 76% of the overall jobs created in the quarter. Other sectors leading in jobs creation growth include metals (53,000 jobs), gems & jewellery (18,000) and handloom (1,000). All these sectors witnessed jobs erosion in the past several quarters.
Poor show by the IT/BPO sector on a q-o-q basis is largely attributed to the economic slowdown. The employment data in the IT/BPO sector for the quarter shows a 43% drop. During January-March 2011, the IT/BPO sector created 2.87 lakh jobs, while in April-June 2011, the sector added only 1.64 lakh jobs.
Analysts, however, have a different take on the figures. According to them, the numbers revealed by the Labour Bureau show a distorted picture. A senior economist in a leading credit rating agency said, ?Many self-employed people have been absorbed in the organised sector. Economic growth over the past few years has been fairly skewed with differing impacts on different sectors. But what worries me are the numbers for the IT/BPO sector which show a higher attrition rate compared to previous three-month period. If the trend continues, the overall employment picture will be worse than for the last fiscal.? Sticking to the Labour Bureau data, direct and contractual workers are included in the survey to arrive at the figures.