Employment slips 1% aided by low hiring growth by companies: Report

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There has been a marginal decline of 1 per cent in employment growth at 6.6 per cent mainly due to a larger number of companies having witnessed lower or negative hiring growth, according to a report.

The employment growth in 2016-17, was at 7.7 per cent, Care Ratings said in a report.

Mainly companies with a turnover of between Rs 500 million-1 billion, Rs 1-2.5 billion and Rs 5-10 billion have witnessed negative employment growth, the report added.

Large companies, above Rs 10 billion net sales have witnessed robust employment growth, it added.

"We observe that sectors like shipping, media and entertainment, abrasive, electrical, iron and steel and diamond have witnessed a robust sales growth in FY18 but at the same time have witnessed a negative growth in employment. On the other hand, telecom sector has witnessed negative sales growth but has provided employment, having witnessed a growth of more than 15 per cent," the report said.

Sectors including agriculture, iron and steel, abrasives, diamond and jewellery, electrical, ship-building, media, paper saw 6.7 decline in employment growth followed by plastic (8 per cent) and diversified (12.6 per cent).

 

While, ferro-manganese, consumer durables, chemicals, hospitality, trading, FMCG, capital goods, logistics and textiles witnessed marginal decline in hiring growth.

The sectors like crude oil witnessed 19.2 per cent growth in employment followed by alcohol (17.3 per cent), finance (16.9 per cent), telecom (16.3 per cent), construction materials (15.6 per cent), aviation (13.1 per cent), realty (13 per cent), non-ferrous metals (10.5 per cent), automobile and auto-ancillary (10.3 per cent), retailing (8.8 per cent) and banking (7 per cent).

Further, the report said, public sector companies witnessed a higher employment growth in 2017-18, compared with FY17.

In case of private companies, there has been a marginal decline in FY18 but the employment growth continued to remain robust and close to the aggregate level of 6.6 per cent.

However, employment growth in sectors like realty, non-ferrous, automobile and auto-ancillary, aviation, finance, crude oil, construction, alcohol have been backed by a robust sales growth in the sector as well, it added.