EMPLOYMENT TRENDS IN

INDIA

CURRENT EMPLOYMENT SITUATION

India's official unemployment rate last year was 3.8%.

The proportion of poor amongst those employed is very high.

Only 8% of total employment is in the organized sector.

Total employment across sector is just 60% (organized sector)

There is a steep decline in the female employment workforce of about 30%

About 40 per cent of the self-employed in rural areas felt that their income of less than Rs 1,500 per month

SHARE OF SECTORS IN EMPLOYMENT- TREND

SECTORS 1999-2000 2004-05 2011-12

PRIMARY 59.84 58.44 53.2

SECONDARY 17.42 18.18 21.50

TERTIARY 22.73 23.38 25.30

•Gradual decline in the Primary Sector •Steady increase in the manufacturing sector namely manufacturing & construction. •Significant increase in the Services sector

•Healthcare, Hospitality and IT/ITeS will create more than 7.31lacs new jobs in the country out 1.6 million new jobs estimated to be created in the organized sector •Healthcare -2.73lakh, hospitality over 2.30lakh and IT/ITeS are 2.27lakh

EMPLOYMENT TRENDS IN VARIOUS INDUSTRIES

HEALTHCARE SECTOR

Global healthcare and wellness is a Rs.2295000crore industry, 2nd largest after agro-industry.

During1990s, Indian healthcare grew at a CAGR of 16%.

By 2013, India’s healthcare sector is projected to grow to nearly

Rs.204000crore that translates to roughly 7% of GDP.

The Indian economy is predicted to expand by at least 5%

annually for the next 45 years with healthcare having the

maximum share.

HSSC( has committed to skill 4.8 million

people over the next 10 years in the

healthcare. Healthcare Sector Skill Council

IT/IT-ES •The IT & ITes sector includes IT services, engineering design and R&D services, ITES or BPO and hardware. •IT Sector accounts for 12% of the total workforce making it the largest employer in the organized sector.

•The industry is expected to grow by 19 per cent during FY 2012-13. •Employee base in the rural areas is expected to increase by over 10 times by 2013-14, compared to 5000 in 2009-10.

REAL ESTATE/CONSTRUCTION

Next to Agriculture, Real Estate is the second largest employer in the economy.

the Real Estate sector contributes around 5 % to the nation’s GDP.

Employs 17% of total workforce.

Despite of the global slowdown, manufacturing, have steady domestic demand.

By 2016 the size of the Indian automobile industry is expected to grow by 13%, to reach US$20-159 billion

SELF EMPLOYED: ENTREPRENEURS

One in every ten Indians is engaged in some entrepreneurial activity

India ranks among the world's worst countries at encouraging entrepreneurs. For ease of starting a business, India is ranked 166th out of 183 countries.

REASONS

• Reams of red tape

• poor infrastructure

• inadequate financial resources.

• Then there is the question of corruption and bribery,

• Indians are averse to risk taking and would rather settle for secure salary paying jobs.

OTHER PROMISING SECTORS:

The education sector will add more than one lakh jobs.

The communication segment will generate around 93,300 jobs and grow at a rate of 3.5%,

The FMCG sector in India is at present, the 4th largest. the consumer retail sector will add over 54,000 jobs this year.

Aviation will give direct and indirect employment to 1.7 million people.

The Media & Entertainment Industry in India is expected to reach Rs 1,457 billion by 2016. The industry achieved a growth of 12% in 2011

Real estate sector's contribution of 1,44,700 jobs translates into a growth rate of 16.8%

PROBLEMS IN EMPLOYMENT

Corporate need employable graduates. only 25 percent of graduates passing out from engineering colleges were directly employable every year.

Up to 15 per cent of the 5,00,000 jobs in investment banking could disappear in the next five years as the euro zone crisis and stiffer regulation hammers revenue, profitability and risk-taking,

As a result of the Euro Zone crisis, there would be cautious hiring in the banking-related IT hiring and retail sector.

Senior BJP leader Uma Bharti on Saturday held that FDI in multi-brand would render crores unemployed once FDI is allowed. 56 % of Indians feel that the FDI in retail would throw the kirana stores out of business.

The employment potential emanating from faster growth manufacturing and services could not be fully exploited due to lack of policy support.

SCOPE FOR FURTHUR STUDIES: FDI

FDI in retail can create 3 million jobs in three years including both direct and indirect jobs.

- In 10 years time 10 million jobs would be created (4 million direct jobs and around 5-6 million indirectjobs).

- One job would be created for every 250 square feet area in retail.

-The retail industry is estimated to grow at 20% per annum.

FDI in insurance sector from 26% to 49%, without having any impact on the public insurance companies is going to make way for employment.

¨FDI in aviation sector will help in generating employment in front hand and back hand jobs.

http://www.getsetresumes.com/blog/212-india-employment-trends-2012 accessed on 6oct

http://indiabudget.nic.in/es2010-11/echap-10.pdf

http://dget.nic.in/publications/annualreportemployment2011.pdf

http://articles.economictimes.indiatimes.com/2012-10-01/news/34198207_1_healthcare-sector-medical-tourism-pharmaceutical-industry

http://www.isrj.net/PublishArticles/777.aspx

SP GUPTA ”INDIA VISION 2020”, 2009

http://business-standard.com/india/news/shankar-acharya-employment-problems/400689/

REFERENCES