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Hiring is gaining momentum across sectors: Ma Foi survey

by A Staff Reporter

Driven by India’s economic turnaround post downturn, hiring in the organized sector is set to pick up at a greater pace in the second quarter, reveals the first quarter results of the Ma Foi Randstad Employment Trends Survey.

The findings of the study for the period of January – March 2010 was released by Mr. K. Pandia Rajan, CEO, Ma Foi Randstad (India & Sri Lanka), in the capital recently.

Ma Foi Randstad is the leading integrated HR services provider in the country and has been conducting the employment trends survey since 2004. This study is India’s largest job market study.

In March 2010, Ma Foi Randstad predicted creation of one million jobs in the year 2010. The latest projection for the period of April to June (Q2) and estimates of actual job creation in January to March 2010 (Q1) for the organized sector was arrived at, after surveying the employment trends in 650 companies across 13 industry sectors in eight major cities --Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune. These companies were queried about hiring in the first 3 months of the year and hiring intentions over the next three months.

The study reveals creation of 1,53,564 jobs during Jan - March 2010 and 3,47,463 jobs are getting created in the period of April – June 2010.

Sector-wise Employment Trends:

According to the survey, the employment trend across all sectors – BFSI, IT & ITES, pharma, healthcare, trade including consumer, retail and services, energy, transport, storage and communication, real estate and construction, hospitality, media and entertainment, non-machinery manufacturing, manufacturing of machineries and equipment, education, training and consultancy are on the same card in the first quarter and are expected to continue at a faster pace in the second quarter.

The recovery from economic crisis has further strengthened the momentum of the Healthcare sector which has reported the greatest employment generation of 52,752 new jobs in Q1, followed by hospitality with 21,500 in the same period. Education, training and consultancy sector added 16, 200 new jobs in Q1.

Projection for Q2 is that healthcare sectcor again will add the largest number of new jobs – 96,248. Real estate and construction sector is estimated to add 52,115, the second highest job creator in the economy. This will be closely followed by the hospitality sector that is estimated to create 49,000 jobs. IT and ITES sectcor is estimated to add 34,000 new jobs; Media and entertainment sector to add 28700 jobs; education, training and consultancy to add 23,200 jobs. Non-machinery manufacturing (17,300), BFSI (15,800), transport, storage and communication (8,800), pharma (6100), energy (5,900), manufacture of machinery and equipment (5300) and trade including consumer, retail and services (5,000) are expected to pick up hiring momentum in Q2 of the year.

There is a significant increase of hiring intentions in Q2 vis-à-vis Q1 for sectors of real estate and construction, media and entertainment and healthcare.

City-wise Employment Trends:

Delhi & NCR is expected to add 38, 350 jobs (added 17650 in Q1 and likely to add 20700 in Q2) by June 2010. The expectation of better performance across sectors has increased optimism among companies, resulting in increase in hiring intent. Mumbai is expected to add 27, 650 jobs (12750 in Q1 and 14900 in Q2) and Chennai is expected to add 11,900 jobs (5600 in Q1 and 6300 in Q2) by June 2010. Following these top three cities are Kolkata – 8350 jobs, Bangalore – 6800 jobs, Hyderabad – 6200 jobs, Pune – 5400 jobs and Ahmedabad – 3260 jobs.

Sector-wise fresher hiring:

Healthcare sector is creating the most number of new jobs for the freshers (36.7%) followed by BFSI (34.1%) and Manufacturing of Machineries & Equipments (29.4%). Among the cities, Delhi & NCR is leading the job creation for freshers with 34.6% followed by Ahmedabad (32.1%), and Bangalore (29.7%). Nearly 75% of total jobs created will be for the experienced professionals and freshers are expected to fill the rest.

“The growth of the employment in organized sector was certainly affected by the downturn and diverted from its course of higher growth. However, revival of economy has brought back positive sentiments and the organized sector is back on hiring mode. Stable growth coupled with several positive policy measures by the government has put the economy back on track and the industries have regained their confidence with higher output and profit levels. In addition to job generation and increase in salary levels, we also expect intra-sector movement of skilled workforce.” said Mr. K. Pandia Rajan, CEO, Ma Foi Randstad (India & Sri Lanka).

Ma Foi Randstad is an international HR service provider servicing world class companies across the globe. Started in 1992, the company has grown into a full spectrum HR services provider for clients worldwide. It has helped generate career opportunities for more than 2,90,000 individuals in 36 countries, and has worked for over 250 Fortune 500 organizations.