Dream Run ; Driven by Rising Domestic Consumption, Exports and High Growth Rates, Corporate India Is Set to Create 8.2 Lakh New Jobs This Year
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Summary
Job seekers have never had it so good. From software to manufacturing, everyone is adding as many warm bodies as it can, making 2007 a landmark year in terms of job creation. Even though corporate India is faced with short-term pressures of rising input costs, high interest rates and a potential slowdown in demand, employment forecast for both the manufacturing and services sectors has never been this strong.
Employment, as a measure of economic growth, has been on the uptick since 2004, but the activity has gained momentum over the last two years with companies adding capacities and increasing headcounts, thanks to rising domestic consumption. Projected to close the financial year with a growth rate of 9 per cent, India continues to be among the three fastest-growing economies in the world. Consequently, its contribution to global GDP is slated to increase from the present 6.2 per cent to 8.8 per cent by 2020. A lion's share of this growth comes from the services and the manufacturing sectors, which have grown by over 11 per cent in 2006- 07. With India gearing up to be a manufacturing hub for industries like textile, auto, steel and petroleum products, the war for talent is spilling on to the manufacturing sector as well.See the full content of this document
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Dream Run ; Driven by Rising Domestic Consumption, Exports and High Growth Rates, Corporate India Is Set to Create 8.2 Lakh New Jobs This Year
The macro-environment may have turned tight with interest rates hardening, but there is little likelihood of a downturn in economic activity in the near future as companies are relying more on non- banking sources for their capital expenditure needs. As a result, higher interest rates are not expected to significantly impact investment and employment activity.
The analysis by the Asian Development Bank, based on the numbers in the latest National Sample Survey Organisation (NSSO) report on employment, indicates that the employment growth rate has picked up from 1 per cent between 1993-94 and 1999-2000 to 2.8 per cent during 1999-2000 and 2004. Manufacturing saw the steepest employment increase at 5.8 per cent, which was followed by services at 3.9 per cent. The higher employment rate in the economy has also benefited those with less than secondary school qualifications. In fact, those who have studied until middle school are the biggest gainers from the growth in employment, capturing 42 per cent of the 70 mill...See the full content of this document
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