Job creation down 43.15% in Q3 as economy slows

This is the slowest since 73,000 jobs were added in the three month period between April and June 2012.

New Delhi | Published: April 11, 2014 1:30 am

Jop creation in eight key sectors of the economy between October to December 2013 was the slowest in six quarters with sectors including automobiles and metals registering a decline in employment.

The data, part of the only official quarterly survey on job creation in the country reveals a sharp deceleration in new jobs creation in the third quarter of FY14, with a fall of 43.15 per cent in jobs on a quarter on quarter basis.

Employment in top eight labour intensive sectors of the economy grew by 83,000 in the quarter ended December 2013 as compared to 1,46,000 jobs created in the second quarter of FY14. Another 86,000 jobs were added in the first quarter of last fiscal.

This is the slowest since 73,000 jobs were added in the three month period between April and June 2012.

Sectors including metals, automobiles, gems and jewellery and transport recorded a decline in employment, according to the Labour Bureau survey. As many as 20,000 jobs were lost in metal industries while 11,000 jobs were lost in the automobile sector.

In contrast, the maximum increase in employment of 92,000 was registered in the textiles including apparels sector followed by 17,000 jobs created in IT and BPOs sector and another 13,000 in the leather sector between September and December 2013.

The data comes at a time when the economy grew at 4.7 per cent in the third quarter of FY14 with expectations of sub-five per cent growth for the second straight year in a row.

Meanwhile, the UPA is embroiled in a debate over jobless growth with the principal opposition — the BJP which has questioned claims that suggests India’s unemployment rate fell from 8.4 per cent in 2004-05 to 5.6 per cent in 2011-12.

Private forecasters are now hoping for an uptick in employment in this fiscal on expectations of a revival in investments and growth.

Teamlease Services had reported a three per cent decline in its net employment outlook for the second half of FY14. “The April to September, 2014 sees a sentiment boost with upbeat organisations expecting business (outlook grew four per cent) and employment (outlook grew five per cent) to grow at a brisk pace,” said its Employment and Business Outlook Report for the first half of FY15.

The Labour Bureau survey also indicated that companies have chosen to hire for longer periods of time with 70,000 workers hired in the direct or permanent category of workers in the third quarter last fiscal and only 13,000 contract workers hired. In the previous quarter, 1,21,000 direct workers and 22,000 contract workers were hired. The pace of new employment generation by exporting units too slipped to 67,000 in the October to December 2013 quarter as compared to 78,000 workers hired by these units in the previous quarter. Non-exporting units hired 16,000 workers in the third quarter of FY14.

The Labour Bureau surveyed 2,160 units in eight sectors including textiles (and apparels), leather, metals, automobiles, gems and jewellery, transport, IT/BPO and handloom and powerloom in the month of January-February, 2014 for the reference period of October-December, 2013.

For all the latest Business News, download Indian Express App