Monday, September 10, 2012

Data reveals India's alarming job squeeze

Between April and June 2012, the prospects of finding a job across a range of the most employment-intensive sectors-like information technology (IT), financial services, telecom and hospitality-in the economy fell dramatically compared with the first three months of 2012. With recession abroad, and policy paralysis at home, the nightmare for young job seekers looks unlikely to end. The assocham survey indicates where jobs will be lost, both in industry and geographical terms. Overall, in the 32 sectors surveyed, there is a 20 per cent drop in hiring between April and June when compared with January to March.The most startling finding of FICCI's business confidence survey for the three-month period between April and June 2012 is on employment. For the first time since the quarterly survey was initiated in July-September 2010, of the 150 companies that were studied, a massive 84 per cent expected hiring to fall or remain static. ficci's survey expects growth over the next six months to be "jobless".The fall in GDP growth to an average of just 5.4 per cent in the first six months of 2012 has cost jobs. There is a massive difference in the number of new jobs created at 5 per cent and 7 per cent, which was roughly the growth rate in 2011-12. That number is three million. Says economist Bibek Debroy, "At 7 per cent growth, the economy would create 10.5 million new jobs in a year. At 5 per cent growth, it will be just 7.5 million."

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