9% growth in jobs in Q2 says ASSOCHAM. Do you agree?

In a recent report ASSOCHAM (The Associated Chambers of Commerce and Industry of India) says new job generation surged by 9% in Q2 of FY14. Top five metros account for 61% of new job generation in Q2. IT, BFSI & construction sectors created maximum jobs 

While it may not tally with the gloom around Diwali & Christmas (an important festive period in India which typically sees a surge in the sales of consumer goods and hints at the state of the average joe’s pocket and general confidence in the job market) ASSOCHAM says new job generation during the second quarter (July-September) of the current financial year (FY 2013-14) has surged by about nine per cent as against the previous quarter (April-June), apex industry body ASSOCHAM said today.

“A total of over 1.36 lakh new jobs were generated in various sectors across India during second quarter (Q2) of FY14 which increased from over 1.25 lakh new jobs that were generated during Q1 and top five metros viz., Bangalore, Chennai, Delhi-NCR, Kolkata and Mumbai together account for about 61 per cent of these new jobs,” according to a sector-specific analysis on ‘Job Trends Across Cities & Sectors,’ conducted by ASSOCHAM. [pullquote]ASSOCHAM reports Quarter-on-Quarter (QOQ) growth which can show an upward trend due to depressed growth in the last quarter and may not hint at a real recovery. A year-on-year comparison that takes a longer times period into account may be a better indicator of actual growth achieved[/pullquote]

What one has to keep in mind is that the growth ASSOCHAM reports is quarter-on-quarter (QonQ) growth which can show an upward trend due to depressed growth in the last quarter and may not hint at a real recovery. A year-on-year comparison that takes a longer time period into account may be a better indicator of actual growth achieved.

At what job level have these jobs been added is also not clear from the report. Most people in mid to senior roles report that jobs at that level are still scarce. A recent report in the Economic Times titled ‘India’s middle level managers feeling trapped’ threw light on the plight of the experienced job seeker.

Details of ASSOCHAM’s report

“Delhi-NCR (national capital region) remained on top with highest share of over 23.6 per cent in the new job generation across India, however new job generation in Delhi-NCR has plummeted by over five per cent during this period i.e. from over 34,200 jobs in Q1 to over 32,300 jobs in Q2,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the chamber’s analysis.

Amid other tier I centres, Bangalore has ranked second with over 21,000 new jobs generated in the city during Q2 and the city has clocked a growth rate of over 12 per cent as over 18,700 new jobs were created in Bangalore in Q1. Besides, registering quarter-over-quarter growth rate of over 11 per cent and nine per cent, Mumbai (14,649 new jobs) and Chennai (8,786 new jobs) have recorded a surge in job generation during the course of past three months.

Kolkata has registered a decline of about two per cent as over 6,400 new jobs were generated in Q2 as against 6,500 new jobs in Q1, highlighted the ASSOCHAM analysis.

“With over 58,000 new jobs, information technology (IT), IT enabled services (ITeS) and IT hardware sector has garnered the highest share of over 42 per cent in the new job generation and the sector has clocked an overall growth rate of over 12 per cent in Q2 as the sector together had created over 49,500 new jobs in the previous quarter,” said Mr Rawat. “The banking, financial services and insurance (BFSI) has ranked as second highest job generating sector with over 22,900 new jobs and the sector together has clocked a growth rate of over 32 per cent.”[pullquote]With over 58,000 new jobs, information technology (IT), IT enabled services (ITeS) and IT hardware sector has garnered the highest share of over 42 per cent in the new job generation and the sector has clocked an overall growth rate of over 12 per cent in Q2[/pullquote]

Construction and engineering sector together has generated over 7,200 new jobs and thereby registering a growth rate of over 10.5 per cent, highlighted the ASSOCHAM analysis.

Telecom, civil aviation, pharma and bio-technology, fast moving consumer goods (FMCG), energy, hospitality, advertising and event management, sports, merchandising, other manufacturing, automobile, research and consultancy are amid other significant sectors that have seen a surge in employment generation.

While academics and education, real estate, agriculture and allied activities, architecture, gems and jewellery, human resource (HR), infrastructure, logistics, media, retail, textile and warehousing are certain sectors that have registered a dip in new job generation in Q2, highlighted the analysis conducted by the ASSOCHAM Economic Research Bureau (AERB).

Amid other tier I centres, Pune  has seen massive surge in new job generation of about 40 per cent during the aforesaid period apart from Ahmedabad (over 31 per cent rise), Surat (24 per cent rise) and Hyderabad (16.5 per cent rise).

While in the tier II category the cities of Amritsar, Allahabad, Aurangabad, Bhopal, Chandigarh, Dhanbad, Guwahati, Gwalior, Indore, Jaipur, Jamshedpur, Nagpur, Patna, Raipur, Ranchi, Vizag, Vijaywada and Vadodra have seen a rise in new job generation.

But Coimbatore, Gandhinagar, Kanpur, Lucknow, Ludhiana and Meerut have registered a decline in new job generation, highlighted the ASSOCHAM analysis.

In the tier III category – Agra, Dehradun, Jalandhar, Jammu, Mysore, Panjim, Patiala and Vellore have registered an increase in new job generation. While, Kota and Mangalore have seen a decline in new job generation in this category.

The ASSOCHAM team tracked the data on a daily basis for vacancies posted by over 3,000 companies on various job portals, advertisements in job supplements of national and regional dailies and news journals for 56 cities and 32 sectors offering employment opportunities across India.