Employment slips just 1% aided by low hiring growth: Study
There has been a marginal decline of 1 percent in employment growth at 6.6 percent mainly due to a larger number of companies having witnessed lower or negative hiring growth, according to a report.
The employment growth in 2016-17, was at 7.7 percent, Care Ratings said in a report. Mainly companies with a turnover of between Rs 50-100 crore, Rs 100-250 crore and Rs 500-1,000 crore have witnessed negative employment growth, the report added.
"We observe that sectors like shipping, media, and entertainment, abrasive, electrical, iron and steel and diamond have witnessed a robust sales growth in FY18 but at the same time have witnessed a negative growth in employment. On the other hand, the telecom sector has witnessed negative sales growth but has provided employment, having witnessed a growth of more than 15 percent," the report said.
Sectors including agriculture, iron and steel, abrasives, diamond and jewelry, electrical, ship-building, media, the paper saw 6.7 declines in employment growth followed by plastic (8 percent) and diversified (12.6 percent). While, ferromanganese, consumer durables, chemicals, hospitality, trading, FMCG, capital goods, logistics, and textiles witnessed a marginal decline in hiring growth.
The sectors like crude oil witnessed 19.2 per cent growth in employment followed by alcohol (17.3 per cent), finance (16.9 per cent), telecom (16.3 per cent), construction materials (15.6 per cent), aviation (13.1 per cent), realty (13 per cent), non-ferrous metals (10.5 per cent), automobile and auto-ancillary (10.3 per cent), retailing (8.8 per cent) and banking (7 per cent).
Further, the report said, public sector companies witnessed a higher employment growth in 2017-18, compared with FY17. In the case of private companies, there has been a marginal decline in FY18 but the employment growth continued to remain robust and close to the aggregate level of 6.6 percent.
However, employment growth in sectors like realty, non-ferrous, automobile and auto-ancillary, aviation, finance, crude oil, construction, alcohol has been backed by a robust sales growth in the sector as well, it added.
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