Job Creation Will Remain Slow Even When Second Wave Recedes: Report

Job Creation Will Remain Slow Even When Second Wave Recedes: Report

Highlights:

  • Only around 6% of the 1,303 employers surveyed stated they plan to hire extra staff in the July-September quarter.
  • Transportation and utilities are expected to dominate the employment market in the third quarter.
  • Six of the seven industry sectors are expected to grow their workforce in the coming quarter.

Since the number of covid cases in the second wave is declining, a ManpowerGroup study finds that job creation will remain slower in the coming months, with fewer employers expected to increase their staff in the next quarter.

Only over 6% of the 1,303 employers polled in the latest ManpowerGroup Employment Outlook Survey said they plan to hire more people in the July-September quarter, down from 12% in April-June. According to the study, about 1% of respondents planned to reduce headcount, while 49% expected no changes to their payrolls and 44% were unclear.

“A study on 1303 employers in India found that employment plans for the next three months are more or less stable. Transportation and Utilities, followed by the Services sector, are expected to lead the job market. With a seasonally adjusted forecast of +8% and +6%, respectively, medium-sized businesses have the fastest hiring pace, followed by large-sized businesses. From a regional standpoint, the North and South indicates similar outlook at +6%,” the poll found.

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“The second wave of the Pandemic has been ruthless,” Sandeep Gulati, Group Managing Director of ManpowerGroup India, said. India, on the other hand, has shown resilience and will to recover by continuing its economic momentum. Under the production-linked incentive (PLI) scheme, the Ministry of Electronics and IT encouraged players to bid for the second round of large-scale electronics manufacturing. They also announced a major initiative to set up display fabrication operations in India. A bill to promote FDI in the insurance sector was approved by Parliament. Furthermore, the cabinet has approved Rs 2 trillion in productivity-linked incentives to be given over five years in order to create jobs and enhance productivity. All of these initiatives will help to improve and accelerate the rate of growth.”

He went on to say, “Skilled worker demand has been constant since the beginning of the year,  , demand for sales, service, and delivery employees is increasing as the consumer confidence is returning owing to the vaccination drive”

Six of the seven industry sectors are expected to add workers in the coming quarter. Employers in the Transportation & Utilities industry predict the strongest labour market, with a Net Employment Outlook of +10 percent, while those in the Services sector predict a fair hiring pace, with a Net Employment Outlook of +7 percent.

Employers in the Mining and Construction sector, on the other hand, forecast to cut payrolls by 2%. When compared to the previous quarter, hiring intentions have weakened in four of the seven industry sectors, most significantly by six percentage points in the Mining & Construction sector. Outlooks are down 4 percentage points in both the Finance, Insurance, and Real Estate sector and the Public Administration & Education sector, while employers in the Services sector are down 2 percentage points. Meanwhile, employers in the Transportation & Utilities sector have improved by 3 percentage points, according to the survey.

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Swastika Dubey

Swastika Dubey is a content writer who has a keen interest in politics, fashion, and lifestyle. She is a post-graduate in Economics and loves to listen to classic old Hindi songs and travel to new places in her leisure time. Her writing is well researched, covering important aspects and core of the topic covering crucial points.

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