Job Creation In Corporate Sector Touched 4 Year High In 2015-16: Report

Mumbai:  There was a recovery in employment in the corporate sector in 2015-16, with around 1,08,000 jobs being created, making it the most productive year in terms of staff hiring, CARE Ratings today said.

"There has been a recovery in employment in the corporate sector in FY16 after declining marginally in FY15.

"In terms of incremental jobs created, FY16 was the best year with around 1,08,000 jobs being created against 84,000 in FY13 and 46,000 in FY14. Hence, FY16 has been the most productive year in terms of hiring employees," the rating agency said in a report titled "Employment in the Corporate Sector - FY16".

However, the impact at the margin on employment on certain industries on account of demonetisation could slow down the pace of job creation towards the end of FY17.

The report is based on figures provided by a sample of companies in their annual reports. It analysed employment data across various industries and is based on a sample of 2,112 companies across various sectors for FY15 and FY16.

The report further said there is a strong relationship between GDP growth and that in employment. Higher rate of expansion in GDP in FY14 and FY15 did not result in corresponding growth in jobs creation. However, this has been reversed in FY16, it added.

Also, while there is no clear trend in the growth in employment across sectors, the service-oriented industries and those in the consumer goods space tended to witness higher growth in employment, the report added.

In FY16, 1,078 companies added up to 3,000 employees per company and only 6 firms saw an increase of more than 10,000 staffers, while 20 had over 3,000, it revealed.

The report opined that for employment to pick up it is essential for all segments in manufacturing to grow at a reasonable pace. The slowdown in investment in the country in the last few years has affected the capital goods and infrastructure industries.

The rating outfit said some sectors like construction involve intake of substantial number of unskilled workers, which has been impacted when growth conditions are low.

As these numbers are based on trends in permanent labour force, there would be a corresponding quantum of unskilled labour too, which would get impacted by the level of business activity.

As the Government has been spending more on infra build-up, it may be expected that the backward linkages will be forged with the other industries which should elevate the demand for labour leading to higher job creation in the coming years, the report added.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)