Job­less growth is a re­al­ity, says Care Rat­ings

‘Gov­ern­ment’s in­fras­truc­ture thrust will help boost jobs’

The Hindu Business Line - - NEWS -

Con­firm­ing fears of ‘job­less growth’, do­mes­tic rat­ing agency Care Rat­ings to­day said em­ploy­ment gen­er­a­tion has not kept pace with GDP ex­pan­sion,and termed it as a “ma­jor con­cern”.

Such a sce­nario calls for “proac­tive mea­sures” from the gov­ern­ment and the re­cent in­fras­truc­ture build­ing ef­forts will help, it noted and said “em­ploy­ment growth has not kept pace with eco­nomic growth”. It can be noted that the Union Labour Min­istry had also con­ceded and set up a task force to work on the same.

Min­is­ter warn­ing

“The cur­rent growth is a job­less growth. Many Euro­pean and Asian coun­tries, in­clud­ing In­dia, are fac­ing it...growth is be­ing re­ported but it is not re­flect­ing in em­ploy­ment gen­er­a­tion,” the then Labour Min­is­ter Ban­daru Dat­ta­treya had said in May this year.

A job­less growth a sit­u­a­tion in which an econ­omy re­cov­ers from a re­ces­sion but the jobs mar­ket does not.

From a sec­toral ba­sis, the agency said the ser­vices sec­tor has ex­tended some re­lief but man­u­fac­tur­ing has failed to cre­ate jobs in re­cent times. Banks, IT, re­tail­ing, and healthcare con­tinue to cre­ate jobs, while min­ing, power and tele­com have saw re­duc­tion in em­ploy­ees, it pointed out.

The agency con­ducted a study of em­ploy­ment in the cor­po­rate sec­tor for the last five years and asked for the find­ings to be taken with cau­tion as the un­or­gan­ised sec­tor and smaller busi­nesses ac­count for a large share in em­ploy­ment gen­er­a­tion.

“It is how­ever be­lieved that th­ese num­bers are broadly in­dica­tive of the trends wit­nessed in the last two years,” the re­port said.

Ag­gre­gate em­ploy­ees in 1,473 com­pa­nies grew to 5.18 mil­lion in FY17 from 5.01 mil­lion in FY15, a growth of a lit­tle over one percentage point per year com­pared to over nearly 7 per cent eco­nomic growth.

Bnaking tops

The bank­ing sec­tor gen­er­ated the high­est em­ploy­ment, with a 21.3 per cent share, fol­lowed by IT, min­ing, healthcare and tex­tiles.

Sec­tors which wit­nessed a fall in em­ploy­ment in FY17 from the pre­vi­ous fis­cal in­cluded fast mov­ing con­sumer goods, me­dia and en­ter­tain­ment and pa­per.

Look­ing up

Crude oil, in­fras­truc­ture, trad­ing, au­to­mo­biles and an­cil­lar­ies, fi­nance and hos­pi­tal­ity, which had recorded neg­a­tive growth in em­ploy­ment in FY16, also wit­nessed growth in FY17, it said.

From a cost of em­ploy­ment per­spec­tive, Care said av­er­age salary has risen for a sam­ple of 1,473 firms to ₹8.35 lakh in FY17 from ₹7.13 lakh in FY15.

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