Ma Foi Randstad

Employment Trends Survey

Wave 1 - 2011

in this report...

? Indian Economy on balanced growth path ? Methodology Data and ? Employment Generation Expected
? Financial Services and Insurance Banking, ? Education, Training and Consultancy ? Energy ? Healthcare ? Hospitality ? Information Technology & Information Technology Enabled Services ? Manufacturing - Machinery and Equipment ? Manufacturing - Non-Machinery Products ? Media and Entertainment ? Pharma ? Real Estate and Construction ? Trade including Consumer, Retail and Services ? Transport, Storage and Communication

? and Conclusion Summary ? Appendix

? A1 - Increase in wage bills across Sectors ? wise total Employment A2 - City ? wise increase in Employment A3 - City ? A4 - Expected Increase in wage bills across cities ? A5 - Estimated Proportion of Fresher/Experienced across Sectors (December 2010) ? A6 - Estimated proportion of Fresher and Experienced employees across Cities (December 2010) ? A7 Estimated proportion of Fresher/Experienced across Sectors and Ownership (December 2010) ? A8 Estimated Percentage of Work Outsourced Across Sectors (December 2010)

The Ma Foi Randstad Employment Trends Survey (MEtS), conducted by Ma Foi Randstad, Indias No. 1 Integrated HR services company, is a study on the Indian employment trends and opportunities. Started in November 2004, MEtS was conducted once a year, till 2008. Considering the several dynamic shifts in employment, even within a years time, MEtS was therefore converted to a quarterly survey from 2010, to capture the changes in employment scenario in India from one quarter to another. The prime objective of this employment survey is to understand the employment trends in the organized sector on a quarterly basis. The present survey has captured the employment situation in the organized sector for the quarter of October 2010 to December 2010 and the likely scenario from January to June 2011. The study is based on the sample survey conducted for about 650 companies across different sectors of the economy. The feedback was gathered from the top HR personnel or from top management of the companies who could share the current and the likely scenario regarding employment related issues. The major parameter captured in the survey is the change in hiring pattern and employee strength. The report is divided into four sections. The first section (Section A) provides the background as well as an overview of the Indian Economy. Section B discusses the data and methodological aspects of the study. Section C provides a picture of the changing pattern of the employment for different sectors of the economy. This section also provides a snapshot of how the scenario is changing in select cities. The final section (Section D) highlights key issues.

Dear Friend, Greetings from Ma Foi Randstad! The year 2010 saw major economies registering modest growth and India on a balanced growth path. India story gained primacy at the beginning of 2010, with the changing market scenarios across the world. The growing significance of the emerging markets like India and China, has led to many global corporations including these countries, in their growth and workforce strategies. Ma Foi Randstad Employment Survey [MEtS] is an initiative to assist the senior leaders in their workforce strategies. At the beginning of 2010, MEtS predicted creation of 1 million jobs in the organized sector through the year. Our year-end METS shows creation of 1.13 million jobs across 13 industry verticals. Healthcare, Hospitality, Real Estate, Construction, IT and ITeS sectors played a major role in 2010 in fuelling the growth and job creation. For 2011, we expect the trend to continue. We estimate creation of 1.6 million jobs across various sectors. We see a large number of these jobs happening in the Healthcare, Nonmachinery Manufacturing, Hospitality, IT & ITeS and Real Estate & Construction sectors. While there is positivity in the air, we as the market leader in the HR services industry, see the Employability Gap as a challenge. I do hope that steps taken by the government and the industry will address this issue quickly and effectively. It is my pleasure to share with you the results of the Ma Foi Randstad Employment Trends Survey 1st edition of 2011. I hope that you will find the report useful. Look forward to your valuable feedback and inputs. Warm Regards

E. Balaji MD & CEO

Indian Economy

on a balanced growth path

The January 2011 update of The World Economic Outlook by International Monitory Fund (IMF) has mentioned about improved modest growth registered by the advanced economies, which is also marked by high unemployment, sovereign debt risks and the relative higher level of economic growth with some signs of optimism. For India, 2010-11 has been a year of balanced growth. The official overall real GDP growth rate for the first half of the year was 8.9 per cent. The inflation rate continues to be high; a cause for concern for the economy. However, the year on year change in the Wholesale Price Index was 8.4 per cent for the month of December 2010, a single digit inflation rate for the fifth consecutive month, after five months of double digit inflation. The Consumer Price Index for industrial workers had also dropped to single digit, which was a positive trend for the economic outlook and was much below the expected level. Spatial distribution of rainfall at sub-division and district levels was significantly better in 2010-11 as compared to the previous year. A favourable overall condition and price environment have raised the expectation of higher production, as well as productivity for various crops in different parts of the country. A comfortable situation has led to small increase in the Wholesale Price Index for cereals, pulses, edible oils and sugar as compared to double digit growth in Wholesale Price Index for the same period in the previous year.

The Index of Industrial production (IIP) has also registered significant higher growth during the last quarter of 2010. Manufacturing has improved considerably during April to December of 2010, compared to the previous quarters, while growth in energy sector was lower compared to the previous year. However, it is expected that a high base is likely to keep the IIP growth low. Also, a somewhat volatile pattern of IIP growth exhibited in recent months is a cause for concern. A high level of reported capacity utilization hints towards uneven patterns in demand from large infrastructure or development projects rather than usual stable economic activities as the reason for fluctuations in IIP growth. The service sector indicators reflect continuation of growth momentum. Though the external demand remained relatively weak, indicators related to transportation and financial sectors look reasonable. The external trade has gone up to US$ 27.9 billion in first half of the 2010-11 compared to US$ 55.9 billion during the corresponding period of 2009-10. However, the cause for concern is the decline in gross as well as net FDI inflows. The Central Governments fiscal position has improved during April to December 2010 due to unexpected bonanza from 3G telecom spectrum sale and better collection of tax and non-tax revenues.

Data Sources
The study has used both primary and secondary data to arrive at different estimates. Secondary data from various sources have been used for this study. Historical data on the manufacturing sector has been culled out from various rounds of the Annual Survey of Industries (ASI) and publications of the Central Statistical Organization (CSO). Apart from these sources, the others used for the study are various surveys of the National Sample Survey Organization (NSSO), Labour Statistics of India and Statistical outline of India. The above sources have the advantage of almost universal coverage of the organized sector within their specific domains. However, data from most of these secondary sources are not up-to-date. Therefore the estimation procedure, to take care of this problem, is by using up-to-date figures on sectoral Gross Domestic Product (GDP) and Index of Industrial Production (IIP). Once estimates of base sectoral employment was obtained, the data captured through primary survey of about 650 firms across sectors were used to arrive at estimates on different parameters. Rigorous estimation procedures were used along with the primary survey data of the companies to estimate parameters for the fourth quarter of the year 2010 and expectations regarding the first two quarters of 2011.
Coverage of Primary Survey Sl. No. Sector No. of companies covered

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Banking, Financial Services and Insurance (BFSI) Information Technology & Information Technology Enabled Services Pharma Healthcare Trade including Consumer Retail Services Energy Transport, Storage and Communication Real Estate and Construction Hospitality Media and Entertainment Manufacturing of Non-Machinery Products Manufacturing of Machineries and Equipment Education, Training and Consultancy

50 46 38 42 43 42 44 59 54 39 84 72 40

estimates of employment generation in different sectors

The outlook is more or less stable across sectors over the months. The optimism of early 2010 was further strengthened due to a positive economic outlook, but the recent political developments marked with scandals have made an impact on the overall business confidence, albeit marginal. Employment generation has remained stable and upbeat in most of the sectors. However, continuous inflation, price of raw materials and intermediate industrial products, scams involving ministers and so on have created some caution in the minds of entrepreneurs. The movement of skilled workforce within the sector continued during the 4th Quarter of 2010. The change in employment across sectors is given in the table below. The employment scenario during any specific time period needs to be viewed from the perspective of various activities and at several fronts, for a considerable period. This section has presented the estimated employment numbers with expectations for different sectors of the Indian economy. It also lists some of the issues that might have an impact on the employment scenario, either directly or indirectly. This will help correlate between the trends observed regarding employment and economic as well as political fundamentals.

Expected Employment Increase in Different Sectors Employment

September 2010

Sectors

Total increase in employees

Oct - Dec 2010 Jan - June 2011

Entire 2011

Per cent increase

Oct - Dec 2010 Jan - June 2011

Entire 2011

Banking, Financial Services & Insurance Education, Training and Consultancy Energy Healthcare IT & ITeS Manufacturing - Machinery and Equipment Manufacturing - Non-Machinery Products Media and Entertainment Pharma Real Estate and Construction Trade including Consumer, Retail and Services Transport, Storage and Communication

887,200 9,769,600 889,100 3,313,052 1,866,600 1,121,000 4,468,200 1,327,100 269,800 808,412 643,900 2,664,700

20,760 24,400 6,400 64,600 52,265 13,800 39,800 29,200 14,551 50,900 8,900 17,900

35,500 51,800 13,300 125,900 100,800 32,500 93,800 63,600 26,700 85,700 20,000 33,800

80,700 107,500 24,900 248,500 183,000 68,400 223,400 126,100 49,400 144,700 38,600 93,300

2.34% 0.25% 0.72% 1.95% 2.80% 1.23% 0.89% 2.20% 5.39% 6.30% 1.38% 0.67%

4.00% 0.53% 1.50% 3.73% 5.25% 2.90% 2.10% 4.69% 9.39% 9.97% 3.10% 1.26%

8.9% 1.1% 2.8% 7.4% 9.5% 6.0% 5.0% 9.3% 17.4% 16.8% 5.9% 3.5%

Estimated Increase in Employment

8.9%
80700

4.0%
35500 20760

October - December 2010

January - June 2011

January 2011 - December 2011

Banking, Financial Services and Insurance

The BFSI sector is expected to add 116,240 jobs in 2011.

? The stable and positive sentiment at the economic front continues

to help the BFSI sector to grow further during the 4th Quarter of 2010. Responses from the BFSI companies indicate that almost similar condition will prevail during the first two quarters of 2011 as well as for the entire year. The sector is cautiously optimistic about growth of employment numbers. ? of Repo and Reverse Repo rates by RBI on 25th January The raise 2011 has caused an increase of Repo rate by 175 basis points and Reverse Repo rate by 225 basis points, since March 2010. CRR has increased by 100 basis points during the same time. ? has remained a cause for concern over the past months Inflation and is expected to continue for a few more months to come. However, the response to structural causes of inflation needs to be through reallocation of resources across sectors. Short term measures like interest rate hikes, though manage to contain inflation to a moderate level are not strong enough to sustain growth. . ? The recent RBI report on the Micro Finance sector has recommended several checks to resolve the issues and improve transparency. However, observations have also been made regarding the Recovery Culture in the financial sector and its adverse effects on the customers. This is an important observation made by RBI, in view of the recent measures taken by the Andhra Pradesh Government to regulate the recovery of loans from the small borrowers by the MFIs. However, the drive towards financial inclusion will certainly play a positive role in employment generation in this sector. ? Bank credit to commercial sector is increasing steadily, which is one of the major driving forces for the banking sector in the country. ? Insurance sector, both life and general, has witnessed a positive sentiment in the 4th Quarter as compared to the previous ones and is expected to do better in coming months.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

907,960

943,400

988,660

Estimated Increase in Employment

1.1%
107500

0.5%
51800

24400

October - December 2010

January - June 2011

January 2011 - December 2011

Education, Training and Consulting

The Education, Training and Consulting sector is expected to add 107,500 jobs in 2011.
? Education sector continued to contribute significantly to the ? The sector is expected to grow at similar rate during the first

employment base of the country during the last Quarter of 2010.

couple of Quarters of 2011. However, the expectation regarding growth for the entire calendar year of 2011 is slightly lower compared to the first two Quarters of the year. ? The regulatory ambiguity still remains the biggest impediment that holds back the sectors transformation into one of countrys largest industry segments. ? by KPMG projects an investment potential of US$ 100 A study billion in Education sector over the next five to six years. Going forward, Venture Capitalists and Private Equity players will have a role to play in the expansion of this sector. ? A distinct shift can be observed in the approach of the students and their parents.. The tendency to opt for job oriented education, rather than the general educational streams, has given immense opportunity to the private players. ? players are currently targeting the student base at Tier II Private and Tier III cities, in addition to the main metros. This move has proved to be effective, since the government education infrastructure is poor in many of these cities.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

9,794,000

9,845,800

9,901,500

Estimated Increase in Employment

2.8%
24900

1.5%
13300

6400

October - December 2010

January - June 2011

January 2011 - December 2011

Energy

The Energy sector is expected to add 24,900 jobs in 2011.

? The Energy sector has remained weak during 4th quarter of 2010

though marginal improvement was noticed as compared to the previous quarter in terms of employment generation. ? The expectations, as reported by the companies for the next two Quarters, as well as for the entire 2011, show us stable growth in employment in spite of many encouraging policy announcements. ? for Electricity and Coal has posted significantly lower growth The IIP rates from April to December 2010, compared to the same period of 2009-10. Amongst the energy sub-sectors, only crude oil has registered an impressive growth of more than 11 per cent during April to December 2010 as compared to -1.4 per cent during the same period of 2009-10. Petro products have also posted a positive growth of 0.8 per cent against minus 1.2 per cent of the previous year. ? hike proposed by the Union Budget 2011-12 for the A 61% Renewable Energy sector should work as a booster for the Green Energy companies. This is mainly due to the increased thrust being given to Solar Energy utilization under the Solar Mission. The proposal from the Government to spend Rs. 5 billion to set up Solar, Small Hydro and Micro Power projects in the Ladakh region of Jammu and Kashmir may also work as a boosting factor if implemented. ? The Central Ministry of Power has set an ambitious plan of power for all by 2012. The plan requires that the installed power generation capacity to be increased form current 147,402 MW to 200,000 MW by 2012. This should provide some impetus to the sector, to grow at a higher level and generate new employment opportunities. ? for renewable energy projects is expected to become easier Funding in India as banks and private equity investors begin to look at clean energy projects as viable business propositions to invest in. ? With inherent advantages such as engineering talent and low-cost manufacturing, India has the potential to be a leader in the cleantechnology industry. Areas of opportunity include Clean Coal Technology and Solar Technology. The efficient building of technologies needs power designers, energy auditors, energy engineers and green building architects. Once the sectors growth path looks up, employment potentially increases.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

895,500

908,800

920, 400

Estimated Increase in Employment

7.4%
248500

3.7%
125900

64600

October - December 2010

January - June 2011

January 2011 - December 2011

Healthcare

The Healthcare sector is expected to add 248,500 jobs in 2011.

? Healthcare sector remains as one of the leading employment

providing sectors in the country contributing to more than 16% of total estimated employment. The sector is poised to contribute greatly to employment in next couple of quarters too. ? The healthcare industry is growing at an unprecedented rate. Indians are, of late,prone to lifestyle related diseases and are vying for better amenities. The healthcare industry in India is anticipated to reach US$ 75 billion by 2012, with a significant growth during the next one year. This sector, thus, will continue as the major employment generating sector in India. ? Penetration of health insurance has also been providing the organized healthcare sector the required boost. ? up new healthcare facilities in tier II and III cities in India Setting are opening up new avenues for employment generation in this the sector. ? no inhibiting factor regarding foreign investment in There is healthcare industry unlike many other industries. The absence of regulatory laws is also playing a positive role in the spreading of the healthcare facilities across the states. Recognizing the need for technological advances in this sector, Government has granted many relaxations too. All these factors are boosting the growth of the sector and in turn generating employment. ? The increasing popularity of Medical tourism along with alternative therapies such as Homoeopathy, Ayurveda and the similar kinds are also providing new opportunities for job creation.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

3,377,652

3,503,552

3,626,152

Estimated Increase in Employment

3.6%
218200

1.9%
115200

49100

October - December 2010

January - June 2011

January 2011 - December 2011

Hospitality

The Hospitality sector is expected to add 218,200 jobs in 2011.

? Hospitality sector has again shown high and stable growth during ? The expectations as reported by the hospitality companies reaffirm

last Quarter of 2010.

the optimism felt amongst the industry players. The employment growth by the sector is expected to be further strengthened during coming months. ? number of approvals for new hotels and a large scale A large investment in hotel infrastructure in the major cities as well as tier II and tier III cities have led to creation of significant number of jobs at all levels. ? Tourist Arrivals (FTAs) in India during October to December Foreign 2010 was at 7.9 per cent, which was marginally lower compared to the previous Quarter. But the sector players are optimistic about the future. ? Exchange Earnings (FEEs) from tourism had also increased Foreign significantly during 4th Quarter of 2010 compared to the same period in the previous year. ? Increased demand for tourism activities, both in domestic and international markets has resulted in big travel agencies and tour operators recruiting on a large scale. ? Substantial numbers of hospitality companies are trying to include various tourism products within their service portfolio. This has also accentuated hiring by these companies at all levels. ? According to the players in the Hospitality sector, Meetings, Incentives, Conferencing and Exhibitions (MICE) have become major revenue generating activities for the sector. This has also increased the need for hiring skilled manpower in this sector.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

6,111,300

6,226,500

6,329,500

Estimated Increase in Employment

9.5%
183000

5.3%
100800

52265

October - December 2010

January - June 2011

January 2011 - December 2011

Information Technology and Information Technology Enabled Services

The IT & ITES sector is expected to add 183,000 jobs in 2011.

? sectors have remained as one of the major job providers IT & ITES

during the 4th Quarter of 2010. The responses from the surveyed companies suggest that the sector will keep growing in 2011 as well. ? According to NASSCOM, the IT-ITeS industry is Indias one of the largest employment generators in the organized sector creating jobs for over 10 million people both directly and indirectly. ? The spread of the IT-ITeS sector to the tier II and tier III cities has further widened the growth potential of the sector thereby generating more employment. ? in number of Rural BPOs has also contributed to the Increase sectors role in increasing employment across the country. ? However, the process of geographical dispersion of the industry is being adversely affected by the non-extension of the STPI scheme and attendant tax incentives. A proactive role on part of the government will lead to increased job creation in the sector. ? Companies in this sector are consciously moving up the value chain in the journey of outsourcing, to stay competitive in the global arena. This has impacted the employment trends in this sector ? in lateral job shifts among employees within the sector Increase has resulted in substantial increase in the salary levels, for the new hires, as well as for existing employees.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

1,918,865

2,019,665

2,101,865

Estimated Increase in Employment

6.0%
68400

2.9%
32800

13800

October - December 2010

January - June 2011

January 2011 - December 2011

Manufacturing Machineries and Equipment

The Manufacturing - Machinery and Equipment sector is expected to add 68,400 jobs in 2011.
? This sector also has experienced significant growth in terms of

employment in the last Quarter of 2010 and also poised for further growth in 2011. ? All its sub-sectors have grown significantly during 2010-11 as compared to previous year. ? Machinery & Equipment (other than Transport Equipment) has grown by more than 27 per cent during the first three Quarters of 2010-11, as against 15 per cent during same period of the previous year. ? Transport Equipment has grown by more than 35 per cent in 2010-11 as against 17 per cent during the same period of 200910. ? However, higher inflation remains a cause for concern for a sustained long term success. ? gap funding for the infrastructure projects by the Viability government can play a positive role for further growth of both this sector as well as Non-Machinery Manufacturing sector. ? Continuous demand for the products in the non-machinery manufacturing sector, in 2010 has provided a boost for this sector. However, a lower growth rate of IIP in the sector in 2011 may result in negative impact on the employment. ? cost of fund, if continued, may also pose a threat for the Higher growth of this sector.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

1,134,800

1,167,300

1,203,200

Estimated Increase in Employment

5.0%
223400

2.0%
93800

39800

October - December 2010

January - June 2011

January 2011 - December 2011

Manufacturing Non-machinery Products

The Manufacturing - Non-Machinery Products sector is expected to add 223,400 jobs in 2011.
? The positive growth momentum that was witnessed during the

third Quarter continued during the fourth Quarter as well. This is expected to continue in 2011 as reported by the companies surveyed. ? the main reasons for the early recovery of the sector in One of India, compared to other emerging economies and developed countries, is the markets domestic demand rather than exports. Sound macro-economic fundamentals and stimulus also played its role in shaping the industrys quick recovery. ? The output of Basic Goods remained at the same level between April and December 2010 compared to the previous year, while intermediate goods showed a marginal decline. ? Consumer Goods sector has again posted a high level of growth of more than 21 per cent during April and December 2010 quarter. ? The labour intensive industries such as Food products, Textile products, Leather and related products, Rubber, Plastic, Petroleum & Coal products etc. have shown significant growth during 4th Quarter as well as during the entire year of 2010. ? Non-Metallic Mineral Products, Metal Products & Parts (except machineries and equipment) have also posted significantly high growth compared to previous year. ? factors together have added significant employment All these numbers to the countrys employment base.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

4,508,000

4,601,800

4,731,400

Estimated Increase in Employment

9.3%
126100

4.7%
63600

29200

October - December 2010

January - June 2011

January 2011 - December 2011

Media and Entertainment

The Media and Entertainment sector is expected to add 126,100 jobs in 2011.
? growth path envisaged for the sector, is expected to Strong ? The employment growth in this sector was higher in the fourth

continue in 2011.

Quarter as compared to the previous three quarters. The responses from the companies also indicate that it will further increase during 2011. ? Federation of Indian Chambers of Commerce and Industry (FICCI) is of the opinion that the Media and Entertainment industry will grow at a compounded annual growth rate (CAGR) of 13 per cent by 2014. ? All positive factors such as regulations that allow foreign investment, the impetus from the optimistic economy, the digital lifestyle of huge urban population of the country along with higher disposable income and spending habits coupled with opportunities thrown open by the advancements, are providing a big lift to the industry. ? foray of 3G on the Indian shores, mobile TV and gaming With the offer a great deal of promise to this industrys growth ? opened routes for foreign investment and the grant of an Cinema industry status has created a significant and positive impact for employment generation. Entry of several foreign production houses in recent months are also a big push to the industrys development. ? Advertising revenues through television are expected to gross US$ 3.12 billion by 2013. In addition, digital advertising through Internet and mobile phones is also gaining momentum. Online advertising is projected to reach US$ 212 million in2011. All these developments are paving way for new job generation in the sector. ? The animation industry is poised to expand greatly. Companies, such as Intel, Disney, Paramount, and Cartoon Network, are looking to tap into this industry. This is due to the growth of gaming and the real-time 3D sector. Employment base of this sector is likely to increase significantly in view of these activities.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

1,356,300

1,419,900

1,482,400

Estimated Increase in Employment

17.4%
40400

9.4%
26700

14551

October - December 2010

January - June 2011

January 2011 - December 2011

Pharma

The Pharma sector is expected to add 49,400 jobs in 2011.

Indian ?Pharma sector has been growing significantly and has maintained the growth during the last quarter of 2010. The expectations also show a large increase in employment generation by this sector in 2011. Contract ? research and contract manufacturing systems are paving new opportunities for the Indian pharmaceutical market. Indian players have the opportunity now to participate in the global generics growth story and benefit from it. Contract manufacturing is growing at a very fast pace and is estimated to grow to US $30billion, whereas contract research is estimated to reach US$610 billion. This will definitely play a positive role in further employment generation by the sector. ? The factors such as growing middle class population, rapid urbanization, increase in lifestyle related diseases and penetration of health insurance has led to dramatic growth in the Indian pharmaceutical industry, which is expected to show double-digit growth in the near future. There is also a growing demand for skilled people in this sector, which was witnessed during the past Quarters and is likely to continue in the future too. ? the companies have expressed their concern over the Some of soaring inflation and high cost of borrowing in the current year. This may affect the growth of the industry if it continues further.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

284,351

311,051

333,751

Estimated Increase in Employment

16.8%
144700

9.9%
85700

50900

October - December 2010

January - June 2011

January 2011 - December 2011

Real Estate and Construction

The Real Estate and Construction sector is expected to add 144,700 jobs in 2011.
? The stable economic growth has put the Real Estate and ? Although the sector had experienced higher growth compared to

Construction sector on the high growth path again.

previous couple of years, it was still lower than the expectation of the sector players. The prime reason behind this is that the latent demand has not entirely translated into the actual demand in the market. ? led to a stable but slightly lower growth expectation in This has terms of employment generation by the sector for the next couple of Quarters and the sentiments for the year 2011 are a bit muted. ? However, the Construction sector remained a big booster for the employment growth. The investment in construction sector accounts for 11% of Indias GDP and nearly 50% of Indias Gross Fixed Capital Formation. ? Since Construction sector accounts for about 65% of the total investment in Infrastructure, it is expected to be the biggest beneficiary. Due to the infrastructure development drive that the country is currently witnessing, this sector is expected to generate substantial number of jobs in the country. ? level of retail and hospitality related activities are also Higher expected to contribute to employment generation.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

859,312

914,500

1,004,022

Estimated Increase in Employment

5.6%
38600

3.1%
20000

8900

October - December 2010

January - June 2011

January 2011 - December 2011

Trade including Consumer Retail Services

The Trade including Consumer, Retail and Services sector is expected to add 38,600 jobs in 2011.
? This sector was on a higher growth path during 4th quarter of

2010, compared to the previous quarters. The expectations of the companies depict, that during next couple of quarters and as well as during the entire year 2011 strong growth trend will be maintained on view of higher growth in international trade and buoyant domestic market. . ? retail sale in India is estimated at US$ 392.63 billion for The total 2011 and is expected to reach US$ 674.37 billion by 2014. Strong economic growth, population expansion, increasing wealth of middle income group and rapid construction of organised retail infrastructure are the triggers for the significant growth witnessed by this sector. With the expanding middle and upper class consumer base, there will be substantial opportunities for the sector in Indias tier II and III cities. ? global companies and expansion of their chains in Entry of different parts of the country has also been an encouraging factor for this upbeat sentiment. Carrefour, the worlds second-largest retailer, has opened its first cash-and-carry store in New Delhi. Germany-based wholesale company Metro Cash & Carry (MCC) opened its second wholesale centre at Uppal in Hyderabad, taking its number of stores to six in the country. All such activities are increasing the future potential for the sector and creating opportunities for new employment generation across regions. ? growth in world economy, especially in the developed Higher countries in 2010, as compared to the previous year has raised the activity levels in this sector. Indias export has grown by more than 26 per cent between April and December 2010 and import has grown by 24 per cent during the same period, which raises immense hope for the sector. Increase in international trade will further raise employment by this sector. During 2010-11 Indias export has grown by more than 26 per cent during April to December 2010 and import has grown by 24 per cent during the same period which raises hope for the sector.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

652,800

672,700

691,420

Estimated Increase in Employment

3.5%
93300

1.3%
33800 17900

October - December 2010

January - June 2011

January 2011 - December 2011

Transport, Storage and Communication

The Transport, Storage and Communication sector is expected to add 93,000 jobs in 2011.
? communication, this sector has again performed strongly Led by ? As reported by the companies surveyed the expectations for the ? New telephone connections have grown by about 13 per cent,

during 4th Quarter of 2010.

next couple of quarters and for the entire 2011 remain optimistic.

compared to previous year. The flexibility in terms of number portability is expected to increase the competition further, amongst the service providers and in turn will lead to higher employment generation in the coming months. ? The transportation sector has shown a mixed pattern. The revenue earning goods traffic by railways was higher by 2.5 per cent during the fourth quarter of 2010 as compared to previous quarter. Total railway traffic has grown by 3.2 per cent from April to December 2010. ? railway sector has shown some improvement, the port Though sector has not picked up the growth momentum yet. The volume of Cargo traffic has grown by only 1.1% during first three Quarters of 2010-11 compared to the previous year. ? Road transport and Civil Aviation sectors have witnessed strong growth momentum between April and December 2010. ? Increased activity in logistics related industries is another big booster for employment growth in this sector.

Total No. of Jobs

December 2010

Estimated

June 2011

Expected

December 2011

Expected

2,682,600

2,716,400

2,775,900

city-wise employment outlook

Ahmedabad
Hiring activities continued during the fourth Quarter of 2010, but at a lower level of less than 5%. According to the expectations of the companies covered under the survey, during 2011, the employment generation may be slightly lower than that of 2010. The sectors that performed well in terms of employment generation are Education, Machinery and Non-Machinery manufacturing, Hospitality, Healthcare, Trade including CRS and IT&ITES.

Delhi & NCR

Significant hiring has taken place during the fourth quarter of 2010 also. This is likely to continue in 2011 at further higher rate. The total new employment expected during the current year should be higher than compared to 2010. Almost every sector has registered high growth regarding employment generation. Amongst them IT&ITES, Healthcare, Real Estate & Construction, Education, Training & Consulting and Trade including CRS are worth mentioning.

Bangalore
Bangalore has witnessed continuous growth in terms of employment generation for the fourth Quarter of 2010. A higher level of employment generation in 2011, compared to 2010 is expected in this city. Almost all sectors have posted good growth contributing to the city employment base. The expectation as reported by the companies suggests further growth during 2011.

Hyderabad
Positive growth momentum in hiring activities continued during the fourth quarter of 2010. Though Hyderabad has shown increasing hiring activities in the past months, the expected employment generation in the city during 2011 may be marginally lower than that of 2010. Most of the sectors have shown substantial growth in employment. Amongst those IT&ITES, Pharma, Healthcare, Trade including CRS, Hospitality, Energy & Infrastructure, Transport, Storage & Communication are the leading ones.

Chennai
Hiring was marginally lower during the fourth Quarter of 2010 as compared to expectations. However, a significant number of jobs were generated during the period compared to the previous year and the initial Quarters of 2010. Chennai is expected to experience a higher level of recruitment activity in 2011, compared to 2010. The major driving sectors were BFSI, Trade including CRS, Healthcare, Real Estate and Construction, Media & Entertainment, Manufacturing and Education, Research & Consulting sectors. Positive momentum is expected in 2011 but at a slightly lower growth rate. The upcoming State Assembly election might be one reason, that has restricted the companies from speculating.
Jan - Dec 2011

Kolkata
After showing a stable trend in employment growth, Kolkata is expected to follow similar employment generation in 2011. Though the economy is looking positive, in view of upcoming assembly elections, the sector players are adopting a wait and watch policy 2011. Banking, IT&ITES, Pharma, Trade including CRS, Real Estate & Construction, Transportation, Storage & Communication, Hospitality and Manufacturing of Machinery and Equipment are the leading sectors in terms of employment generation.

102,884 42,567

Jan - Dec 2011

102,616 38,648

Mumbai
Mumbai also witnessed high growth in employment during the fourth quarter of 2010. The hiring activities are expected to be better in 2011. BFSI, IT&ITES, Transport, Storage & Communication, Real Estate & Construction, Media & Entertainment and Education, Training and Consulting are the leading sectors to contribute to Mumbais employment base.

Jan - Dec 2011

Pune
The strong positive growth momentum in hiring activities continued in Pune during the fourth quarter of 2010. In the year 2011, Pune is expected to continue the same growth trajectory it exhibited during 2010.. Though hiring took place across most of the sectors, IT&ITES, Media & Entertainment, Manufacturing of Machinery & Equipment and Education, Training & Consulting sectors have witnessed higher level of activitycompared to the other sectors.

68,134

30,534 60,317 63,968

37,600
July - December 2011 January - June 2011 October - December 2010

Jan - Dec 2011

31,759

16,368
Jan - Dec 2011

20,794 9,535

28,101

25,251

24,897

Jan - Dec 2011

15,391

14,720 8,278

Jan - Dec 2011

13,489 5,777 7,712 3,818

Jan - Dec 2011

11,259

7,527

25251

9,393 4,356

6,442 4,554

3,636 3,891

2,178

Mumbai

Delhi & NCR

Chennai

Kolkata

Bangalore

Pune

Hyderabad

Ahmedabad

Summary and Conclusion

This Ma Foi Randstad Employment Trends Survey (MEtS) has covered employment generation and other employment related aspects during the 4th Quarter of 2010 and has alongside captured the expectations with regard to employment opportunities for the first two Quarters as well as for the entire year 2011. Ma Foi Randstad Employment Trends Survey for the 1st Quarter 2010 had presented a growing sense of optimism spreading across sectors and cities. However, the optimism was shadowed with concerns regarding the sustainability of the growth. The subsequent reports for 2nd and 3rd Quarters showed that with the strengthening of the economy the optimism of the initial months of 2010 had grown further and was translated into higher level of hiring activities for most of the sectors and locations. A stable upward growth coupled with several government stimuli to boost the economy created positive sentiments and the industry sectors were optimistic. The current survey report also asserts that industries are confident of a stable growth of the economy and expect the same to continue in 2011. The inter-industry movement of manpower will gain momentum along with new hiring activities at the entry level. The employment base of almost every sector has grown substantially during the fourth Quarter of 2010 and is showing signs of further stable growth in 2011. Healthcare, Hospitality, IT & ITES, Education, Training and Consulting, Manufacturing sectors are amongst the key sectors contributing to Indias employment base. The top sectors that are likely to generate more than 200,000 jobs in 2011 are Hospitality, Real Estate & Construction, IT & ITeS and Media & Entertainment. In terms of growth percentage, we find that Pharma, Real Estate & Construction, IT & ITeS, Media 7 Entertainment and BFSI sectors are likely to occupy the top slots. Energy is relatively a weak performer compared to other sectors. The employment has shown an increasing trend in most of the cities covered in the survey. Bangalore, Pune, Delhi & NCR and Mumbai have shown substantial increase in their employment base. The current survey estimation suggests that a total number of 1.6 million jobs are expected to be added to the employment base of the country during the year 2011.

Appendix
A-1: Increase in Wage Bills across Sectors Banking, Finance Services & Insurance Education, Training and Consultancy Energy Healthcare Hospitality Information Technology & Information Technology Enabled Services Manufacturing - Machinery and Equipment Manufacturing - Non- Machinery Products Media & Entertainment Pharma Real Estate and Construction Trade including Consumer, Retail and Services Transport, Storage and Communication
Estimated Average Increase during 3rd Quarter of 2010 Estimated Average Increase during 4th Quarter of 2010 Expected Average Increase during First Two Quarters of 2011 Expected Average Increase during 2011

3.10 % 2.90 % 3.10 % 2.90 % 3.00 % 3.20 % 3.10 % 2.30 % 2.80 % 3.80 % 3.70 % 3.00 % 3.10 %

3.60 % 3.23 % 2.32 % 3.84 % 3.10 % 2.47 % 3.12 % 2.40 % 2.80 % 2.50 % 3.12 % 3.80 % 3.62 %

6.20 % 7.56 % 5.18 % 6.52 % 5.90 % 6.50 % 5.72 % 5.64 % 6.45 % 6.60 % 5.83 % 7.60 % 6.96 %

11.20 % 10.76 % 8.82 % 10.39 % 10.00 % 12.40 % 10.16 % 10.48 % 11.19 % 11.20 % 10.32 % 12.81 % 10.99 %

A-2: City-wise Total Employment

Estimated Employment December 2009

Estimated Employment September 2010

Estimated Employment December 2010

Expected Employment June 2011

Expected Employment December 2011

Ahmedabad Bangalore Chennai Delhi & NCR Hyderabad Kolkata Mumbai Pune

37,555 103,705 308,329 491,411 71,267 140,807 558,464 50,752

44,287 117,245 347,417 561,125 85,516 161,354 627,210 62,051

46,465 121,602 372,314 586,376 89,334 170,747 655,311 66,605

50,355 132,860 409,914 650,344 97,045 186,137 715,627 73,048

53,992 142,395 440,448 688,992 102,823 202,505 758,195 81,325

Growth Rate

A-3: City-wise Increase in Employment

Jan - Sep 2010

Oct - Dec 2010

Jan - Dec 2010

Jan - June 2011

Jan - Dec 2011

Oct - Dec 2010 (%)

Dec 2010 During June 2011 (%) 2011 (%)

Ahmedabad Bangalore Chennai Delhi & NCR Hyderabad Kolkata Mumbai Pune

6,732 13,540 39,088 69,714 14,249 20,517 68,746 11,299

2,178 4,356 24,897 25,251 3,818 9,393 28,101 4,554

8,910 17,897 63,985 94,965 18,067 29,910 96,847 15,853

3,891 11,259 37,600 63,968 7,712 15,391 60,317 6,442

7,527 20,794 68,134 102,616 13,489 31,759 102,884 14,720

4.92 3.72 7.17 3.46 4.46 5.82 4.48 7.34

8.79 9.60 10.82 11.40 9.02 9.54 9.62 10.38

16.20 17.10 18.30 17.50 15.10 18.60 15.70 22.10

A-4: Expected Increase in Wage Bills across Cities

Estimated Average Increase in 4th Quarter of 2010

Expected Average Increase in First Two Quarters of 2011

Expected Average Increase in 2011

Ahmedabad Bangalore Chennai Delhi & NCR Hyderabad Kolkata Mumbai Pune

3.1 % 3.7 % 3.3 % 4.1 % 3.3 % 3.7 % 3.3 % 3.7 %

5.7 % 5.9 % 6.1 % 7.2 % 5.8 % 6.5 % 6.9 % 6.8 %

10.6 % 11.1 % 10.7 % 12.1 % 10.8 % 10.6 % 10.7 % 12.4 %

A-5: Estimated Proportion of Fresher/Experienced Manpower across Sectors, December 2010 Banking, Finance Services & Insurance Education, Training and Consultancy Energy Healthcare Hospitality Information Technology & Information Technology Enabled Services Manufacturing Machinery and Equipment Manufacturing - Non- Machinery Products Media & Entertainment Pharma Real Estate and Construction Trade including Consumer, Retail and Services Transport, Storage and Communication
Note: Fresher is considered as less than 3 years of experience

Proportion of Fresher (%)

Proportion of Experienced (%)

47.32 % 62.54 % 44.35 % 56.70 % 70.94 % 48.07 % 57.72 % 55.53 % 63.35 % 47.72 % 57.11 % 65.70 % 67.87 %

52.68 % 37.46 % 55.65 % 43.30 % 29.06 % 51.93 % 42.28 % 44.47 % 36.65 % 52.28 % 42.89 % 34.30 % 32.13 %

A-6: Estimated proportion of fresher and Experienced Employees across Cities Ahmedabad Bangalore Chennai Hyderabad Kolkata Mumbai Pune Delhi NCR
Note: Fresher is considered as less than 3 years of experience

Proportion of Fresher (%)

Proportion of Experienced (%)

55.64 % 55.37 % 58.97 % 59.29 % 57.29 % 53.31 % 64.75 % 51.85 %

44.36 % 44.63 % 41.03 % 40.71 % 42.71 % 46.69 % 35.25 % 48.15 %

A-7: Estimated Proportion of Fresher/Experienced across Cites and Ownership, December 2010 Ahmedabad Bangalore Chennai Hyderabad Kolkata Mumbai Pune Delhi NCR
Note: Fresher is considered as less than 3 years of experience

Public Limited
Proportion of Fresher (%) Proportion of Experienced (%)

Private Limited
Proportion of Fresher (%) Proportion of Experienced (%)

62.31 % 54.31 % 62.77 % 59.74 % 72.50 % 40.93 % 73.96 % 40.02 %

37.7 % 45.7 % 37.2 % 40.3 % 27.5 % 59.1 % 26.0 % 60.0 %

53.9 % 55.5 % 57.9 % 59.1 % 54.1 % 64.4 % 63.3 % 54.6 %

46.1 % 44.5 % 42.1 % 40.9 % 45.9 % 35.6 % 36.7 % 45.4 %

A-8: Estimated Percentage of Work Outsourced Across Sectors, December 2010

Percentage of work outsourced

Banking, Finance Services & Insurance Education, Training and Consultancy Energy Healthcare Hospitality Information Technology & Information Technology Enabled Services Manufacturing -Machinery and Equipment Manufacturing - Non- Machinery Products Media & Entertainment Pharma Real Estate and Construction Trade including Consumer, Retail and Services Transport, Storage and Communication

11.2 % 17.2 % 7.0 % 5.9 % 13.0 % 16.7 % 16.1 % 15.3 % 10.1 % 6.2 % 17.6 % 15.0 % 17.8 %

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