Mid­sized In­dian firms to cre­ate 7 mn jobs by 2021

Hindustan Times ST (Jaipur) - - World - Rozelle Laha feed­back@livemint.com

RE­PORT CARD 1.4 mil­lion jobs to be cre­ated an­nu­ally; num­ber likely to go up: Peo­pleStrong

As job cre­ation at­tains a top pri­or­ity in In­dia’s fu­ture growth agenda, mid­sized com­pa­nies, with 100 to 5,000 em­ploy­ees, will be the largest re­cruiters, ac­cord­ing to a sur­vey.

Ac­cord­ing to an exclusive sur­vey by HR out­sourc­ing and tech­nol­ogy firm Peo­pleStrong shared with Mint, if the rate of gross do­mes­tic prod­uct (GDP) growth and sub­se­quent job cre­ation con­tin­ues to be the same as to­day, the mid-mar­ket will cre­ate ap­prox­i­mately 7 mil­lion new jobs by 2021, which means ap­prox­i­mately 1.4 mil­lion jobs an­nu­ally.

In­dia’s GDP was at 6.1% in the fourth quar­ter, down from 7% in the third quar­ter of FY 2017.

Com­pa­nies in the mid-mar­ket seg­ment are hir­ing ap­prox­i­mately 3.5 mil­lion peo­ple an­nu­ally, out of which 2 .5 mil­lion is re­place­ment hir­ing and 1 mil­lion is new job ad­di­tion, ac­cord­ing to data.

“Mid-sized com­pa­nies are the real strength of our coun­try. Since im­por­tant pol­icy de­ci­sions are be­ing taken by the govern­ment, the in­dus­try and busi­nesses will cer­tainly see a good time. One will see bet­ter em­ploy­ment gen­er­a­tion in the com­ing years,” said Pra­vat Chaturvedi, for­mer labour sec­re­tary, Govern­ment of In­dia, adding that it is hard to pre­dict whether these jobs will come up in the for­mal or in­for­mal sec­tor.

In March, Mint re­ported that In­dia will make up for around 23% of jobs to be lost to au­to­ma­tion glob­ally by 2021. In­for­ma­tion tech­nol­ogy (IT), IT-en­abled ser­vices (ITeS) and se­cu­rity ser­vices, fol­lowed by bank­ing, will be the first sec­tors to be hit by au­to­ma­tion.

“Au­to­ma­tion never re­duced em­ploy­ment. When com­put­ers re­placed type­writ­ers, ef­fi­ciency im­proved. What is re­quired is im­proved ef­fi­ciency, im­proved pro­duc­tion and bet­ter in­come gen­er­a­tion,” Chaturvedi said.

Peo­pleStrong pre­dicts trans­ac­tion-in­ten­sive jobs like server mon­i­tor­ing, data col­lec­tion, cus­tomer ser­vice (level 1 queries) across in­dus­tries, phys­i­cal labour-in­ten­sive jobs in man­u­fac­tur­ing and agri-busi­nesses van­ish­ing in the next five years.

At the same time, the com­pany fore­casts some emerg­ing jobs too.

These in­clude jobs in ar­ti­fi­cial in­tel­li­gence, in­ter­net of things (IoT), mo­bile and cloud com­put­ing, an­a­lyt­ics, net­work­ing. Data sci­en­tists and dig­i­tal en­ablers will also be in de­mand in tra­di­tional sec­tors like bank­ing and man­u­fac­tur­ing.

“If govern­ment ini­tia­tives— like Make in In­dia, mak­ing star­tups ac­count­able for job cre­ation, labour law re­forms— start kick­ing in, this num­ber can be much higher,” said Peo­pleStrong chief ex­ec­u­tive of­fi­cer and founder Pankaj Bansal.

HT/FILE

IT, IT­en­abled ser­vices, se­cu­rity ser­vices and bank­ing are sec­tors widely ex­pected to be hit by au­to­ma­tion.

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