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Indicus Ma Foi Randstad Employment Trends Survey - Wave 1 - 2011
Indicus Ma Foi Randstad Employment Trends Survey - Wave 1 - 2011
The Ma Foi Randstad Employment Trends Survey (MEtS), conducted by Ma Foi Randstad, India’s 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 year’s 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,
Warm Regards
E. Balaji
MD & CEO
Indian Economy
on a balanced growth path
The January 2011 update of The World Economic Outlook The Index of Industrial production (IIP) has also registered
by International Monitory Fund (IMF) has mentioned about significant higher growth during the last quarter of 2010.
improved modest growth registered by the advanced Manufacturing has improved considerably during April to
economies, which is also marked by high unemployment, December of 2010, compared to the previous quarters,
sovereign debt risks and the relative higher level of while growth in energy sector was lower compared to the
economic growth with some signs of optimism. For India, previous year. However, it is expected that a high base is
2010-11 has been a year of balanced growth. The official likely to keep the IIP growth low. Also, a somewhat volatile
overall real GDP growth rate for the first half of the year pattern of IIP growth exhibited in recent months is a cause
was 8.9 per cent. for concern. A high level of reported capacity utilization
hints towards uneven patterns in demand from large
The inflation rate continues to be high; a cause for concern infrastructure or development projects rather than usual
for the economy. However, the year on year change in the stable economic activities as the reason for fluctuations in
Wholesale Price Index was 8.4 per cent for the month of IIP growth.
December 2010, a single digit inflation rate for the fifth
consecutive month, after five months of double digit The service sector indicators reflect continuation of growth
inflation. The Consumer Price Index for industrial workers momentum. Though the external demand remained
had also dropped to single digit, which was a positive trend relatively weak, indicators related to transportation and
for the economic outlook and was much below the financial sectors look reasonable. The external trade has
expected level. gone up to US$ 27.9 billion in first half of the 2010-11
compared to US$ 55.9 billion during the corresponding
Spatial distribution of rainfall at sub-division and district period of 2009-10. However, the cause for concern is the
levels was significantly better in 2010-11 as compared to decline in gross as well as net FDI inflows. The Central
the previous year. A favourable overall condition and price Government’s fiscal position has improved during April to
environment have raised the expectation of higher December 2010 due to unexpected bonanza from 3G
production, as well as productivity for various crops in telecom spectrum sale and better collection of tax and
different parts of the country. A comfortable situation has non-tax revenues.
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.
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.
employment
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
Banking, Financial Services & Insurance 887,200 20,760 35,500 80,700 2.34% 4.00% 8.9%
Education, Training and Consultancy 9,769,600 24,400 51,800 107,500 0.25% 0.53% 1.1%
Manufacturing - Machinery and Equipment 1,121,000 13,800 32,500 68,400 1.23% 2.90% 6.0%
Manufacturing - Non-Machinery Products 4,468,200 39,800 93,800 223,400 0.89% 2.10% 5.0%
Media and Entertainment 1,327,100 29,200 63,600 126,100 2.20% 4.69% 9.3%
Real Estate and Construction 808,412 50,900 85,700 144,700 6.30% 9.97% 16.8%
Trade including Consumer, Retail and Services 643,900 8,900 20,000 38,600 1.38% 3.10% 5.9%
Transport, Storage and Communication 2,664,700 17,900 33,800 93,300 0.67% 1.26% 3.5%
Estimated Increase in Employment
8.9%
80700
4.0%
35500
20760
October - December 2010 January - June 2011 January 2011 - December 2011
1.1%
107500
0.5%
51800
24400
October - December 2010 January - June 2011 January 2011 - December 2011
2.8%
24900
1.5%
13300
6400
October - December 2010 January - June 2011 January 2011 - December 2011
7.4%
248500
3.7%
125900
64600
October - December 2010 January - June 2011 January 2011 - December 2011
3.6%
218200
1.9%
115200
49100
October - December 2010 January - June 2011 January 2011 - December 2011
9.5%
183000
5.3%
100800
52265
October - December 2010 January - June 2011 January 2011 - December 2011
Information Technology during the 4th Quarter of 2010. The responses from the surveyed
companies suggest that the sector will keep growing in 2011 as
well.
Enabled Services According to NASSCOM, the IT-ITeS industry is India’s 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.
Increase in number of Rural BPOs has also contributed to the
?
sector’s 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
Increase in lateral job shifts among employees within the sector
?
has resulted in substantial increase in the salary levels, for the new
hires, as well as for existing employees.
6.0%
68400
2.9%
32800
13800
October - December 2010 January - June 2011 January 2011 - December 2011
5.0%
223400
2.0%
93800
39800
October - December 2010 January - June 2011 January 2011 - December 2011
9.3%
126100
4.7%
63600
29200
October - December 2010 January - June 2011 January 2011 - December 2011
17.4%
40400
9.4%
26700
14551
October - December 2010 January - June 2011 January 2011 - December 2011
16.8%
144700
9.9%
85700
50900
October - December 2010 January - June 2011 January 2011 - December 2011
5.6%
38600
3.1%
20000
8900
October - December 2010 January - June 2011 January 2011 - December 2011
3.5%
93300
1.3%
33800
17900
October - December 2010 January - June 2011 January 2011 - December 2011
Bangalore Hyderabad
Bangalore has witnessed continuous growth in terms of Positive growth momentum in hiring activities continued during the
employment generation for the fourth Quarter of 2010. A higher fourth quarter of 2010.
level of employment generation in 2011, compared to 2010 is
expected in this city. Almost all sectors have posted good growth Though Hyderabad has shown increasing hiring activities in the past
contributing to the city’ employment base. The expectation as months, the expected employment generation in the city during
reported by the companies suggests further growth during 2011. 2011 may be marginally lower than that of 2010.
Pune
Jan - Dec 2011
68,134 The strong positive growth momentum in hiring activities continued
in Pune during the fourth quarter of 2010. In the year 2011, Pune is
30,534 expected to continue the same growth trajectory it exhibited during
60,317 63,968 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.
37,600
16,368
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 India’s 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
Estimated Average Estimated Average Expected Average
Expected Average
A-1: Increase in Wage Bills across Sectors Increase during Increase during Increase during First
Increase during 2011
3rd Quarter of 2010 4th Quarter of 2010 Two Quarters of 2011
Growth Rate
Jan - Sep Oct - Dec Jan - Dec Jan - June Jan - Dec
A-3: City-wise Increase in Employment Oct - Dec Dec 2010 - During
2010 2010 2010 2011 2011
2010 (%) June 2011 (%) 2011 (%)
A-8: Estimated Percentage of Work Outsourced Across Sectors, December 2010 Percentage of work outsourced
about Randstad
Randstad specializes in solutions in the field of flexible work and human
resources services. Our services range from regular temporary staffing and
permanent placement to inhouse, professionals, search & selection, and HR
Solutions. Since acquiring Vedior in 2008, the Randstad Group is one of the
leading HR services providers in the world with top three positions in
Argentina, Belgium & Luxembourg, Canada, Chile, France, Germany,
Greece, India, Mexico, the Netherlands, Poland, Portugal, Spain, Switzerland
and the UK, as well as major positions in Australia and the United States.
End 2010 Randstad had approximately 27,500 employees working from
close to 4,200 branches and inhouse locations in 43 countries around the
world.
Indicus Analytics is an economics research and data analysis firm based in New Delhi.
Indicus examines many aspects of the Indian economy both at the national and sub-
national level It conducts monitoring and evaluation studies, indexation and ratings, as
well as policy research.
The endeavour of this research is to use it to broaden the public policy debate to promote
liberalism and the mechanisms of the market for the stimulation of growth in India. The
extension of the competitive market mechanism of resource allocation to the economy as
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