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Job generation drops 20 per cent in July-September quarter, says Assocham

While Delhi/NCR emerged as a leading jobs generating centre in the country, the worst hit sectors were media, insurance, pharma, retail, aviation and FMCG.

twitter-logo PTI   New Delhi     Last Updated: October 31, 2014  | 18:18 IST
Job generation drops 20% in July-Sept: Assocham
Photo for representation purposes only. (Source: Reuters)

Job generation in the domestic industry dropped sharply by 19.9 per cent during the July- September quarter compared to previous three-month period due to persisting weaknesses in the economy, industry body Associated Chambers of Commerce and Industry of India (Assocham) said on Friday.

Assocham said IT, infrastructure, hospitality and aviation sectors reported negative growth.

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

It also said that during the July-September quarter, Delhi/NCR emerged as a leading jobs generating centre in the country.

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

The national capital generated 28,192 jobs during the quarter as against 46,652 jobs during the previous three-month period, it said.

Further Bangalore, Mumbai and Chennai centres 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.

Sectorwise, the worst hit 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 the country 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 sector which drives bulk of its revenues from exports, particularly to the US, Europe, Japan," the industry body said.

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