Job market back on sunny pitch, Q2 sees 5 lakh opportunities

Job market back on sunny pitch, Q2 sees 5 lakh opportunities
The Financial Express, November 26, 2009, Page 3

fe Bureaus, New Delhi

The smiles are back in the sectors that were worst hit by the global slowdown last year. Almost 5 lakh jobs have been created in the second quarter of 2009-10 (July to September) as per a report by the labour bureau on the effect of economic slowdown on employment in India.

Significantly, though the bureau’s study was limited to units in 8 affected sectors in 11 states, overall employment in these sectors has risen by 1.51 lakh since September 2008.

The latest quarter’s numbers are in stark contrast to the 4.91 lakh job losses reported by the Bureau in its first quick survey after the Lehman Brothers’ collapse for the period of October to December 2008. The latest quarter’s job accretions also constitute a major reversal from the 1.71 lakh job losses reported in previous quarter of April to June 2009.

While the employment spurt between July and September 2009 can be buttressed by India’s improving factory output numbers in recent months, the latest report holds a good omen on the exports front where growth still remains negative. As many as 2.04 lakh of the 5 lakh total jobs created in the quarter are in exporting units.

“In the earlier quick employment quarterly surveys, the results show that the export oriented units were the most affected and major job losses were registered. During the current survey, employment in export oriented units is showing signs of recovery with an increase in all the sectors, except leather,” the Bureau’s report notes.

In fact, prospects for exporters of gems and jewellery and handloom and powerloom products seem particularly bright.

All the 15,000 jobs added in the handloom sector and 75% of the 58,000 jobs added in gems are in exporting units. Ironically, textiles was the worst-hit in the previous quarter, with 1.52 lakh employees eased out.

Overall, the maximum job creation has been seen in textiles and metals, which employed 3.18 lakh and 65,000 workers, respectively, between July and September 2009.

The only sector that reported a decline – leather – had seen a spurt in employment in the quarter from April to June.

The decline in leather sector jobs is attributed to the monsoon season as production typically slows down.