Slow pace of job growth in smaller companies with net sales of less than Rs 1,000 crore led to an overall decline in employment growth in 2017-18, shows a study on employment by Care Ratings.
According to the study of 700 companies that have published their annual report for FY’18 the employment growth slid to 6.6 per cent down from 7.7 per cent growth registered in FY’17.
The study shows that while companies having revenues between Rs 1,000 crore and Rs 10,000 core saw the employment growth at upwards of 9.5 per cent, other segments struggled to deliver higher employment generation.
The employment growth for smaller companies with net sales of less than Rs 50 crore fell from a high of 37.7 per cent seen in FY’17 to 8.9 per cent in FY’18. That for companies in the net sale basket of Rs 50 to Rs 250 crore witnessed contraction in employment generation.
“The slowdown in employment growth on an aggregate level from 7.7 per cent in FY17 to 6.6 per cent in FY18 is on account of large proportion of companies (65 per cent of the total) having either negative employment growth rate or employment growth rate less than 5 per cent,” said Madan Sabnavis, chief economist, Care Ratings.