Ma Foi RandstadEmployment Trends SurveyWave 3 - 2011
in this report...Indian Economy – Sluggish but not Panicky?? MethodologyData and? of Employment Generation in Different Se...
Indian Economysluggish but not panickyThe Gross Domestic Product (GDP) of India grew by 7.7% in Q1,               Producti...
Exports during August ‘11 were valued at US$ 24,312.53 million        The rupee has been the worst performer among the Asi...
Despite the slowdown in Indian economy, it is expected toestimates of                                                     ...
Banking, Financial                                                                                          composition of...
Education, Training and                                                                                     composition of...
composition of new hiresEnergyBetween June and September 2011, the                                                        ...
composition of new hiresHealthcareBetween June and September 2011, the                                                    ...
Hospitality                                                                                                 composition of...
composition of new hiresIT & ITeSInformation Technology and                                                               ...
Manufacturing                                                                                               composition of...
Manufacturing                                                                                               composition of...
Media and Entertainment                                                                                     composition of...
composition of new hiresPharmaBetween June and September 2011, the                                                        ...
Real Estate and                                                                                             composition of...
The organized sector in India created 346,000 jobs
The organized sector in India created 346,000 jobs
The organized sector in India created 346,000 jobs
The organized sector in India created 346,000 jobs
The organized sector in India created 346,000 jobs
The organized sector in India created 346,000 jobs
The organized sector in India created 346,000 jobs
The organized sector in India created 346,000 jobs
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The organized sector in India created 346,000 jobs

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The organized sector in India created 346,000 jobs between July and September 2011 and is expected to add another 326,400 by end 2011, according to the latest findings of Ma Foi Randstad Employment Trends Survey – Wave 3.

The survey was conducted among 676 companies across 13 industry segments panning 8 Indian cities. The feedback was gathered from the top HR personnel and senior management of companies, who shared valuable insights on the job creation during the last (July – September) and the current (October – December) quarters of 2011.

The current slowdown in the economy and increasing domestic inflation has resulted in sectoral variation in the employment outlook among sectors and although new jobs continue to be added, it is at a slower pace. According to the survey, the Healthcare sector continues to lead in job generation by adding 60,400 jobs in Q3 (July – September) 2011, followed by Hospitality sector with 48,400 jobs and IT & ITeS sector with 46,600 jobs during the same period.

This is however lesser than the numbers (Healthcare - 63,800 / Hospitality - 54,400 / IT & ITeS - 55,500) predicted at the beginning of the quarter three. These sectors are expected to continue as the lead job generators in the coming quarter with Healthcare expecting to add 58,700 jobs followed by Hospitality & ITeS adding 40,000 plus jobs each.

Among the cities, Mumbai added 28,500 jobs, followed by Delhi & NCR adding 27,000 and Chennai adding 15,500. However, the total job generation by these 3 cities was lower by 6,100 jobs, against the original prediction (Mumbai - 32,300 / New Delhi & NCR – 27,900 / Chennai – 16,900) at the beginning of Q3. These cities are expected to generate a total of 69,200 jobs in the current quarter.

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The organized sector in India created 346,000 jobs

  1. 1. Ma Foi RandstadEmployment Trends SurveyWave 3 - 2011
  2. 2. in this report...Indian Economy – Sluggish but not Panicky?? MethodologyData and? of Employment Generation in Different SectorsEstimates ? Financial Services and Insurance Banking, Education, Training and Consultancy ? Energy ? Healthcare ? Hospitality ? Information Technology & Information Technology Enabled Services ? Manufacturing - Machinery and Equipment ? Manufacturing - Non-Machinery Products ? Media and Entertainment ? Pharma ? Real Estate and Construction ? Trade including Consumer, Retail and Services ? Transport, Storage and Communication ?Concluding Remarks?Appendix? A1: Expected Increase in Employment across Different Sectors A2: Expected Increase in Salary across Different Sectors - Lateral Job Shift A3: Composition of New Hires by Experience A4: Composition of New Hires by Functional Areas A5: Share of Different Hiring Sources for New Hires A6: City-wise Expected Employment A7: City-wise Likely Increase in Salary - Lateral Job Shift A8 : City-wise Share of Different Experience Brackets amongst New Hires A9: City-wise Share of Different Functional Areas amongst New HiresThe Ma Foi Randstad Employment Trends Survey (MEtS), conducted by Ma Foi Randstad, India’s No. 1 Integrated HR services company, is astudy 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 from2010, 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. Thepresent survey captures the employment situation in the organized sector for the third quarter of 2011 (from June to September 2011) andthe likely scenario for the fourth quarter of the year (October to December 2011). The study is based on a sample survey conducted for 676companies across 13 different sectors of the economy, mainly during the month of September 2011. The feedback was gathered from thetop HR personnel or top management of the companies who could share valuable insights regarding the previous as well as next quarterscenario about employment related issues. The major focus of the survey is to estimate the changes in employment scenario across sectorsand space. The other issues highlighted in the survey are changes in salary for the lateral hiring, recruitments by experience categories andhiring by different functional roles.The report is presented in four sections. The first section, Section A discusses the recent trends and an overall view of the Indian Economy.This section is followed by Section B that provides insights about the data and methodological aspects of the study. Section C presents apicture of the changing pattern of the employment for different sectors of the economy. A snapshot of the changing scenario for selectedcities is also given in this section. The final section, Section D concludes the study highlighting key issues.
  3. 3. Indian Economysluggish but not panickyThe Gross Domestic Product (GDP) of India grew by 7.7% in Q1, Production in eight core industries (Coal, Crude Oil, Natural Gas,2011-12 period, as compared to 8.8% growth rate for Q1, 2010- Refinery Products, Fertilizers, Steel, Cement, Electricity) grew at a11. Agriculture, Forestry & Fishing and Electricity, Gas & Water slower pace of 5.3%, during the April-August 2011 period, asSupply sectors showed significantly higher growth in Q1 of current compared to 6.3% growth rate over the same period last year.financial year as compared to the last year. Trade, Hotels, The y-o-y growth rate of production of these eight industries wasTransport & Communication Sectors retained their high growth at 3.52% for the month of August 2011, almost halved whentrajectory. On the other hand, Mining & Quarrying and compared to July 2011 (7.47%). The growth in IIP fell sharply,Construction Sectors experienced major fall in growth rate. touching a two year low of 3.3 % in the month of July 2011,Manufacturing, Community, Social & Personal Services Sectors also after a 8.8% rise during June 2011.experienced a significant fall. In relative terms, the fall in fortune ofthe Financial Sector was minor. The manufacturing sector, which constitutes over 75% of the index, expanded by 2.3 % in July ’11, as against 10.8% in JulyThe draft approach paper for the Twelfth Five Year Plan (2012–17) ’10 and 10.3% during June ‘11. April to July cumulative growthreleased in August 2011 targets an annual GDP growth rate of rate also decelerated from 10.5% last year to 6.1% this year. The9%. Earlier, India had achieved an average growth rate of about mining sector expanded by 2.8 % in July ‘11 against 8.7% in July9% during 2004–08, which was interrupted by the global financial ‘10. The growth of consumer goods sector was higher at 6.2 %crisis. In the aftermath of the crisis, average growth rate has compared to 5.8% last July. The growth was mainly due to thedropped by about one percentage point, to 7.8% during turnaround in the consumer non-durables sector (-0.9% to2009–11. In 2011–12, the terminal year of the Eleventh Plan, RBI 4.1%). The consumer durable production growth deceleratedexpects growth to be about 8 per cent. The IMF has forecasted from 14.8% last July to 8.6% in July 2011. Electricity generationIndias economy to grow at a slower pace of 7.8% in 2011-12 and grew by 13.1 % in July, against 7.9 % during June 2011 and7.5% in 2012, down from its June forecasts of 8.2% and 7.8% 3.7% in July 2010. The capital goods sector fell by 15.2 %,respectively. Considering India’s growth experience in the post compared to 38.2 % during June 2011 and 40.7% in July 2011.financial crisis period (2009-11) and the current adverse world From April to July 2011, industrial output grew by 5.8%, whicheconomic outlook, the next Twelfth Five Year Plan’s target growth was lower than 9.7% achieved for the corresponding period lastrate may not be achieved, more so if the current high inflation rate year. The July growth rate at 3.3%, is also lower than thepersists for a longer time period. According to a Reserve Bank of corresponding figures of June 11 (8.8%) & July 10 (9.9%).India study, inflation has a negative effect on growth when thewholesale price index (WPI) based on inflation goes beyond the Economic slowdown has resulted in lower than budgeted5.5% per cent threshold. However, India, along with China, will collection of tax revenue coupled with lower collection undercontinue to be one of the fastest growing economies. small savings schemes. This may lead to a higher level of Government borrowing than that was projected for the secondIndias food inflation continued its northward movement in the half of the fiscal. The unfavourable equity market condition hasweek ended September 24, as it rose to 9.41% against 9.13% in also forced the Government to put its disinvestment programmethe previous week. On a week-on-week basis, the food articles on hold. It is now projected that the Government will borrow Rsindex rose a marginal 0.2% to 197.7, recording the eighth 528 billion more from the bond market, during Oct ’11 – Mar ’12successive week of rising prices. This is however, lower than last period, than what was proposed in the budget in Feb ‘11. The52 week average of 10.88%. The continued increase in prices benchmark 10-year bond yield spiked 8 basis points to 8.43 perdespite good rains in the last two years indicate a structural shift in cent immediately after the announcement and the benchmark 5-demand and supply, due to the rise in rural income and labour year swap rate rose 12 bps to 7.15 per cent and the one-year ratesupply constraints. The WPI for the week ended 24th September, rose 6 bps at 7.96 per cent.2011 for primary articles showed some easing, to 10.84% in theweek ended September 24, as against 11.43% during previous Volatile crude oil prices and sharp rupee depreciation has forcedweek. In the corresponding week, last fiscal primary article oil companies to hike petrol prices by Rs 3.14 per litre. The fuel &inflation was at 19.58%. The 52 week average is at 14.50%. The power prices remained stable, with a y-o-y inflation rate ofnon-food inflation in the week under review, slowed further to 14.69% for week ending 24th September, 2011. This was higher10.77%, as against 12.89% in the previous week. In the than fiscal inflation rate of 10.80% for the last correspondingcorresponding week of the last fiscal, it was at 24.73% and the 52 week and a 52 week average of 12.41%. Oil imports duringweek average is at 24.31%. August ‘11 were valued at US $ 10,278.7 million, which was 48.72% higher than oil imports worth US$ 6,911.6 million inIn its bid to control inflationary pressure, RBI had increased the August ‘10. Oil imports during April-August, FY 2011-12 wererepo rate by 350 bps, which is from a low of 4.75% (repo rate) to valued at US$ 52,251.2 million which was 27.09% higher than8.25% in the past 18 months. At one hand this has increased the corresponding period last year.input costs, while on the other, it has raised concerns over themoderation of loan demand and the increase in asset-quality risksfor the financial sector. The twin effects of inflationary pressureand increased capital costs, is also reflected in the lower advancetax payment, by India Inc. for the Q2 of FY 2011-12. The advancetax payment by top 100 companies rose to a modest 9.9% for theJuly to September quarter from a year ago, as against 19% for theApril-June quarter. This suggests that the corporate profit growthis likely to be muted in the second quarter.
  4. 4. Exports during August ‘11 were valued at US$ 24,312.53 million The rupee has been the worst performer among the Asianwhich was 44.25% higher in than US$ 16,854.16 million worth of currencies over the last few months. The rupee fell 5.9% againstexports in August ‘10. Cumulative value of exports for the period US$ in September and is currently quoted at 49.023 against theApril-August in FY 2011 - 12 was US$ 134,502.54 million as 2011 high of 43.855 that was reached in late July. This will have aagainst US $87,218.51 million last year, registering a growth of major impact on India’s import bill, particularly for oil imports. If54.21%. Imports during August ‘11 were valued at US the international price of oil does not ease, weak rupee condition$38,354.15 million (Rs.173,663 crore) representing a growth of is likely to play a major role in increasing the inflation, which is41.82%. Cumulative value of imports for the first five months of already high. Over the period April-July of current financial year,FY 2011-12 was at US $189,393.77 million against US US$ 14.54 billion of FDI inflow came into India. This was 92%$134,928.14 million last year, thus growing at 40.37%. The higher than the inflow figure, for the corresponding period of lastcumulative trade deficit was estimated at US $54,891.23 million, year. Around 35% of FDI came through the Mauritius route.which is higher than the US$ 47,709.63 million deficit during April Singapore, UK and Germany were the other three major points of–August of FY 2010-11. origination. Drugs and Pharmaceuticals sector was the major attractor (US$ 3.00 billion), followed by Services sector (US$ 2.46 billion) and Telecommunication sector (US$ 1.74 billion). 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 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 is used to take care of this problem, by using up-to-date figures on sectoral GDP (Gross Domestic Product) and Index of Industrial Production (IIP). Once estimates of base sector level employment was obtained, the data captured through primary survey of 676 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 third quarter of the year 2011 and expectations regarding the fourth quarter of 2011. Coverage of Primary Survey Sl. No. Sector No. of companies covered 1 BFSI 54 2 Education, Training and Consultancy 55 3 Energy 28 4 Healthcare 40 5 Hospitality 61 6 IT & ITES 57 7 Manufacturing of machineries and equipments 82 8 Non-machinery Manufacturing 83 9 Media and entertainment 35 10 Pharma 39 11 Real Estate and Construction 55 12 Trade including CRS 44 13 Transport, Storage and Communication 43
  5. 5. Despite the slowdown in Indian economy, it is expected toestimates of grow at a healthy rate of 7.8% to 8.0%. As a result, although there will be sectoral variation in the employmentemployment outlook among the sectors, new jobs will continue to be added, albeit at a slower pace. Global meltdown and continuing high domestic inflation has resulted in increasegeneration in of input costs. Concomitant series of increase in policy rates by Reserve Bank of India has increased the capital cost thus adversely affecting the rate sensitive sectors like real estatedifferent sectors and automobile, by decreasing their demand. The lower general demand level due to reduced disposable income has also played a role in weakening the job market. In certain sectors like Construction, Government’s failure towards quick implementation of infrastructure projects has affected the job generation and seasonal cyclicality in demand is another reason lower employment growth in sectors like retail and hospitality. The overall change in employment in Q2 of FY 2011-12 and change expected in the Q3 of FY 2011-12 is presented below in the following table. More detailed sectoral level analysis highlighting the prospects of these individual sectors, which will help in analysing why the employment numbers are as they are, is presented subsequently. Expected Employment Increase in Different Sectors Expected Employment Increase in Employment Per cent increase Sectors increase in Employees Jul - Sep Jul - Sep Oct - Dec Jul - Sep Oct - Dec June 2011 2011 2011 2011 2011 2011 2011 Expected Estimated Expected Estimated Expected BFSI 939,800 80,700 15,300 14,800 11,900 1.57 1.27 Education, Training and Consultancy 9,839,200 107,500 24,500 21,600 20,700 0.22 0.21 Energy 910,100 24,900 7,900 7,500 6,600 0.82 0.73 Healthcare 3,492,700 248,500 63,800 60,400 58,700 1.73 1.68 Hospitality 6,205,600 218,200 54,400 48,400 41,600 0.78 0.67 IT & ITES 2,010,000 183,000 55,500 46,600 41,600 2.32 2.07 Manufacturing of machineries and equipments 1,164,600 68,400 14,500 13,800 14,000 1.19 1.20 Non-machinery Manufacturing 4,589,100 223,400 36,100 36,500 38,300 0.80 0.83 Media and entertainment 1,413,000 126,100 31,300 30,900 32,800 2.19 2.32 Pharma 309,000 49,400 11,300 12,600 12,800 4.08 4.14 Real Estate and Construction 934,300 144,700 29,600 30,700 26,200 3.29 2.80 Trade including CRS 671,500 38,600 10,800 9,700 9,900 1.44 1.47 Transport, Storage and Communication 2,709,500 93,300 14,200 12,500 11,300 0.46 0.42
  6. 6. Banking, Financial composition of new hiresServices and Insurance 16% 3%Between June and September 2011, the 32%BFSI sector has added 14,800 jobs and isexpected to add another 11,900 jobs < 1 Yearbetween October and December 2011. by experience 1 - 4 Years 5 - 10 years > 10 YearsRBI raised the policy rate twice in the last quarter to 8.25% in its fight?against inflation, following up its earlier 10 increases. This will furtherincrease the cost of Fund for both the banks and the borrowers. Someof the rate sensitive sectors like real estate and auto industry arealready experiencing a slowdown in demand. Slower credit growth 49%will also limit the ability of banks to fully pass on the increase in costof fund, putting pressure on its margin.?banks had managed to reduce their Gross NPA figures fromIndian11.4% in 2001 to 2.4% in 2010. But the increase in the interest rateand faltering growth potential, both domestic and international, hasraised the prospect of increase in bad debts in the books of the banks. 2%Given the current inflationary situation, even if the policy rates are not? 11%raised further, the interest rate is expected to remain at an elevated 19%level with no cut expected anytime soon. The pressure on Indianbanks is expected to continue for some time.Banks raised deposits Rs. 3,223 billion during the April-September? Admin / Accountants etcperiod, but could disburse credit worth Rs. 1,511 billion only, implying Core Activities includingan incremental credit-deposit ratio of 0.47, which is the lowest in last Marketing and BDfour years. by function Customer ServiceContinuing with the negative annualised premium equivalent (APE)?growth over the last 3 quarters of 2010-11, the slowdown in Life Senior ManagementInsurance sector continued in Q1 of 2011-‘12 with the industryregistering negative APE growth of 23%. The private sector faredeven worse at negative growth of 40%. The demand shift towardstraditional Insurance products and away from investment products iscited as the main reason. 68%The General insurance industry registered 22.35% growth during Q1?of FY2011-12 in terms of gross written premium. It is estimated togrow at over 18% till 2015. In the near term, the premium incomefrom the largest sub-segment of Motor Insurance may slow down dueto faltering auto sales. The second largest vertical - Health Insurance isexpected to retain its positive outlook. The growth in premium is 5%expected to continue at a compound annual growth rate (CAGR) of 13%around 28.5% during FY12-FY14. 16%? the employment generation by the BFSI sector in the June-OverallSeptember ’11 quarter has been subdued. It is also expected toremain so unless the underlying economic factors show signs of Campusimprovement. 17% HR Agency by hiring sources Referrals Social Media Others 49% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Estimated Employment June 2011 September 2011 December 2011 939,800 954,600 966,500 12.2% 9.1% July - September 2011 October - December 2011Note: Employment numbers are given as round figures
  7. 7. Education, Training and composition of new hiresConsulting 4%Between June and September 2011, the 30% 30%Education, Training and Consultancy sectorhas added 21,600 jobs and is expected to < 1 Yearadd another 20,700 jobs between October by experience 1 - 4 Years 5 - 10 yearsand December 2011. > 10 Years? Right to Education (RTE) Act 2009 having come into effectWith thefrom April 2010, it is now a fundamental right of all children todemand eight years of quality elementary education. The effort to 36%expand educational access is severely constrained by the lack ofsuitably qualified, appropriately-trained human resources in adequatenumbers.There are half a million vacancies of teachers in the country and?another half a million teachers are required to meet the RTE norms onpupil-teacher ratio. The demand in the secondary education segment 3%will also see commensurate increase. 12%?18 percent of all Government’s education spending or aboutAbout 23%1.12% of GDP is spent on higher education today.? Five Year Plan targets to raise it to 25% and 1.5%The 12threspectively, which means an additional allocation of about Rs.25,000 Admin / Accountants etccrore to higher education.? participation in the higher education will also continue toPrivate Core Activities including Marketing and BDexpand, especially in Management, Medicine and Technology by functionsegments. Similar increased private participation will be seen in the Customer Serviceexpanding pre-school sector and skill development initiatives. The Pre- Senior Managementschool education market is set to reach US$ 1 billion mark by 2012against US$ 750 million at present.The upgradation of Industry Training Institutes/ Industry Training?Centers to launch and scale up technology specialisations across allVocational Training Institutes is also expected to increase under new 62%Public Private Partnership initiatives.The newly setup IIMs, IITs, IIITs, IISERs and Central Universities are on?a recruitment spree along with the existing institutions. This coupledwith increased Government focus on research is expected to result insignificant reverse brain drain, also aided by current adverse economicconditions prevailing in most of the advanced economies. 8%The employment generation across quarters may not be linear, as? 15%most of the hiring takes place before the beginning of a newacademic session, generally between January and June period. This is 17%also reflected in the June – September ’11 employment figures for thesector. Campus 16% HR Agency by hiring sources Referrals Social Media Others 44% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Estimated Employment June 2011 September 2011 December 2011 9,839,200 9,860,800 9,881,500 11.5% 11.0% July - September 2011 October - December 2011Note: Employment numbers are given as round figures
  8. 8. composition of new hiresEnergyBetween June and September 2011, the 1%Energy sector has added 7,500jobs and is 26%expected to add another 6,600 jobsbetween October and December 2011. 51% < 1 Year 1 - 4 Years by experience? for Electricity declined in August 2011 (149.4) compared toThe IIP 5 - 10 yearsJuly 2011 (152.1). Compared to January 2011 (146.4), it hasincreased only marginally. At y-o-y level, it has increased by 9.5% > 10 Yearscompared to August 2010 (136.4).Considering coal based power generation constitutes more than half? 22%of India’s installed capacity, the country’s power scenario will continueto be under stress as the shortage of coal persists. The power ministryhas estimated that the country has lost four billion units (bu) of powergeneration between April and September this financial year, due to asevere dip in coal supply from Coal India and its arms. According toPower ministry estimates, Coal India and its associates may achieveonly 310 million tonnes of production in 2011-12 against a target of347 mt. Coal Ministry is also yet to sign fuel supply agreement for the25,000 MW capacity power plants that came up in last three years. 2%The situation has been further aggravated by volatile internationalprices of coal. 20%? to coal, gas based power generation units are also facingSimilar 27%supply shortages, leading to lower plant load and stagnation incapacity expansion. Considering the share of Thermal power in India’s Admin / Accountants etcoverall power generation capacity, the stunted growth of this sub- Core Activities includingsector may be responsible for the lower than expected employment Marketing and BDgeneration in the Energy sector. by function Customer ServiceThe government plans to add 100,000 MW during the 12th Plan to?the current capacity of 174,000MW. However, India’s track record in Senior Managementadding power generating capacity is poor. In the five years to 2007,the country added 20,950MW of capacity, against a target of41,110MW. The situation remains grim for the 11th Plan target, withthe government set to miss the plan target of 78,577 MW. So,though there is huge unmet demand and significant growth potential, 51%the actual expansion of the sector is uncertain. Successfulimplementation of expansion plans can result in generatingsubstantial number of jobs.There will be increased demand for trained manpower for operating?the smart grid technologies, systems and related software, as po¬werindustry in India is expe¬c¬ted to undergo a paradigm ch¬ange, 6%fuelled by legislative and regulatory activities. The sector would 12%require power instrumentation engineers to design and produce thesenew equipments. 14% Campus 36% HR Agency by hiring sources Referrals Social Media Others 32% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Estimated Employment June 2011 September 2011 December 2011 910,100 917,600 924,200 16.0% 15.0% July - September 2011 October - December 2011Note: Employment numbers are given as round figures
  9. 9. composition of new hiresHealthcareBetween June and September 2011, the 2%Healthcare sector has added 60,400 jobs 29%and is expected to add another 58,700jobs between October and December 36% < 1 Year2011. 1 - 4 Years by experience 5 - 10 yearsThe Healthcare Industry has witnessed a paradigm shift in the last five? > 10 Yearsyears and has grown from a unorganized to organized sector. Thecontributing factors for this shift are growing Indian economyresulting in increasing disposable income level of people, increasedpenetration of health insurance sector, demographic shift, expandingmedical tourism, increased prevalence of lifestyle related diseases and 33%enhanced healthcare awareness, at least among the urbanpopulation.The Indian Healthcare Industry is currently estimated at US$ 40 Billion.?The industry is expected to grow to US$ 79 Billion by 2012 and ~ US$280 Billion by 2020 according to a KPMG report on the sector.The hospital sector is experiencing rapid increase in investments from? 4%Corporates. Most of the existing players have announced expansionplans and many of large companies with no or very little healthcare 18%presence have announced huge investment plans in Healthcare 28%Delivery.? also a boom in the diagnostic industries along with theThere is Admin / Accountants etcgrowth in hospital infrastructure in the country. New investors Core Activities includingincluding the MNCs are playing a key role in increasing the Marketing and BDemployment base in the sector, through expanding their presence in by functionTier I and Tier II cities. Customer ServiceThere have been a number of noteworthy initiatives taken up by the? Senior ManagementIndian government to boost the Healthcare sector in the country like100% FDI under automatic route and National Rural Health Mission.Expansion is also taking place in the number of medical colleges andtheir intake capacity. Six new AIIMS category medical institutions arecoming up along with upgradation of many existing colleges. 50%This sector, however, suffers from bottlenecks in manpower supply, as?the current number of seats in medical and nursing colleges iswoefully short of requirement, as reflected in the low doctor topopulation ratio. This is expected to limit growth potential in theshorter term.An ASSOCHAM study has estimated the current worth of Indian? 7%medical tourism industry at around Rs.4.5 billion with about 0.85 19% 5%million foreign patients annually getting treated here. These numbersare expected to grow to Rs. 10.8 billion with 3.2 million foreignpatients expected to visit India by 2015. However, with the currentglobal economic downturn, the inflow of foreign patients in the June- CampusSeptember ’11 period has been lower than the trend. HR AgencyThe increase in the price of pharmaceutical products has led to the?review of brownfield FDI policy in the sector. by hiring sources 12% Referrals Social Media Others 57% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Estimated Employment June 2011 September 2011 December 2011 3,492,700 3,553,100 3,611,800 17.0% 16.4% July - September 2011 October - December 2011Note: Employment numbers are given as round figures
  10. 10. Hospitality composition of new hiresBetween June and September 2011, the 1%Hospitality sector has added 48,400 jobs 22%and is expected to add another 41,600 36%jobs between October and December < 1 Year2011. 1 - 4 Years by experience 5 - 10 years?one of the booming sectors of Indian economy. According toThis is > 10 YearsWorld Travel and Tourism Council, the tourism industry in India isexpected to expand from its current size of Rs. 4.4 billion to Rs. 21billion in 2022.? period of January to July 2011, the Hotel and Tourism sectorOver thehas seen an FDI inflow of Rs. 2.26 billion. 41%? Tourist Arrivals (FTAs) during the Month of September 2011Foreignwas 0.40 million as compared to FTAs of 0.37 million in September2010 and 0.33 million in September 2009. FTAs during the periodJanuary-September 2011 were 4.22 million with a growth of 10.0 %,as compared to the FTAs of 3.84 million with a growth of 8.0 %during January-September 2010 over the corresponding period of 3%2009. The FTA in 2016 is expected to be 11.24 million. 7%With expanding Indian economy, this number will be further bolstered?by business travelers. The domestic tourism sector also enjoyed a 28%healthy growth rate of 10.7% in terms of number of visitors (740.21million) in 2010 calendar year. Number of Domestic Tourist Visits Admin / Accountants etc(DTVs) in 2016 is projected to be at 1451.46 million. Core Activities including? attractiveness of India as a destination for medical tourismGrowing Marketing and BDwill also provide significant support. An ASSOCHAM study has by functionestimated the number of foreign patients visiting India to grow to 3.2 Customer Servicemillion by 2015 from around a million currently. Senior ManagementHowever, despite high growth potential of the hospitality sector over?the medium to long term, it may face glitches in the short termaffecting the potential for (permanent) employment generation. 62%In the face of uncertainty in demand, this sector is also seeing?increased hiring of need based temporary hands and outsourcing.Seasonal factors like monsoon and flood also dampened the mood inthe June-Sept 11 quarter.According to a National Skill development Corporation study on skill?gap in hospitality sector, the overall employment by 2022 in theTourism Industry (in Hotels and Restaurants and Tour Operators) isestimated to be about 7.2 million persons, generating employment 14%opportunity for 2.6 million more people.? the requirement though will be in the unorganized sector. ABulk oflarge portion of the demand for human resource will occur in the 33%areas of Front Office Staff, F&B Services and Kitchen, Housekeeping 11%staff, Ticketing and Sales, Tour Guides. Campus HR Agency by hiring sources Referrals Social Media Others 3% 39% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Estimated Employment June 2011 September 2011 December 2011 6,205,600 6,254,000 6,295,600 15.0% 13.3% July - September 2011 October - December 2011Note: Employment numbers are given as round figures
  11. 11. composition of new hiresIT & ITeSInformation Technology and 2%Information Technology Enabled Services 28% 30%Between June and September 2011, the IT& ITES sector has added 46,600 jobs and is < 1 Yearexpected to add another 41,600 jobs by experience 1 - 4 Yearsbetween October and December 2011. 5 - 10 years > 10 Years? national policy on information & communicationsThe drafttechnology, 2011 unveiled here on Friday by Telecom & IT Minister,Mr. Kapil Sibal, aims at increasing the revenues of the IT & ITeSindustry to US $300 billion by 2020. Presently, with the exports 40%contributing to the majority of the $80 billion earnings, the policyproposed is expected to boost the growth of indigenous demandsand market. The proposed policy also aims at formulating fiscal andother incentives to attract investment in this sector in Tier II and IIIcities.The computer software and hardware jointly with telecommunication? 3% 7%sector has seen an FDI inflow of Rs. 7.68 billion, accounting for11.81% of total FDI inflow in the corresponding period. This is 28%significantly lower than the long term (Apr ’00 – Jul’11) trend share of15.96%.NASSCOM is of the view, that the recent developments in the US and? Admin / Accountants etcEurope would not affect the Indian IT industry much and it will pursue Core Activities includinga growth path owing to augmented domestic demands and Marketing and BDexpanding in emerging markets like Brazil and Russia. On the by function Customer Servicecontrary, ASSOCHAM expects the macro fiscal insecurity in US andEurope having an adverse impact on the markets, considering their Senior Managementshare in exports of India’s $80 billion IT industry. This reflects somedegree of uncertainty among the industry players.? led to many IT firms becoming cautious in their hiring. ThisThis hashas been further accentuated by the decline in attrition rates since the 62%economic downturn, which has come down to 15% from 25% in thelast couple of quarters. Many of the firms are hiring based on theirimmediate project needs? IT companies have also been very active in hiring freshers fromThe bigcampus early this year. But with lower attrition rates and uncertainfuture flow of new projects, the initial calculations may have gonewrong. There are reports of delay in on-boarding the new campus 9%hires, with many of those who completed studies in June/July still to 17%get their joining letters. This will also limit scope of new hiring, at leastat the junior level, for some time.While the sluggish global economy poses a risk to pricing and new? 18%orders, a weak rupee on the other hand, may help boost margins. Campus 12%There has been about 7.8% depreciation in INR against US$ in the HR Agencylast 45 days and further depreciation is possible in light of continuedglobal risk aversion. If the depreciation holds, it may prove positive for by hiring sources ReferralsIT sector companies subject to their hedging positions. Social Media Others 44% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Estimated Employment June 2011 September 2011 December 2011 2,010,000 2,056,600 2,098,200 15.6% 15.6% July - September 2011 October - December 2011Note: Employment numbers are given as round figures
  12. 12. Manufacturing composition of new hiresMachineries and Equipment 3%Between June and September 2011, the 23% 27%Manufacturing of Machineries andEquipment sector has added 13,800 jobs < 1 Yearand is expected to add another 14,000 by experience 1 - 4 Yearsjobs between October and December 5 - 10 years2011. > 10 Years? the manufacturing sector growth has remained almost similarOverall,during last few months and the IIP is hovering around 175 pointssince April 2011. According to the latest Government release, IIP 47%during July-August 2011 has gone down marginally by about 5points.? Goods sector performed almost at the same level during July-CapitalAugust 2011, as compared to the second quarter of the year.The sub-sectors such as Motor Vehicles, Trailers, other Transport? 1%Equipments, Radio, Television and other Communication Equipments 11%have posted high positive growth during this quarter. 22%The performance of the Electrical Machineries sector remained poor.?? in cost of capital has also played a dampening role for newIncreaseinvestment in the sector. Admin / Accountants etcThe performances of these sectors have resulted in the lower level of? Core Activities includingjob additions as against expectations. The expectation for the next Marketing and BDquarter is also in the similar lines. by function Customer ServiceThe reported salary hike for lateral shifting during the third quarter?was lower than second quarter and expected to remain almost at the Senior Managementsame level during the next quarter.? the hiring mood within the sector is not yet promising.Overall, 66% 5% 13% 16% Campus 17% HR Agency by hiring sources Referrals Social Media Others 49% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Estimated Employment June 2011 September 2011 December 2011 1,164,600 1,178,400 1,192,400 13.0% 12.8% July - September 2011 October - December 2011Note: Employment numbers are given as round figures
  13. 13. Manufacturing composition of new hiresNon-machinery Manufacturing 2%Between June and September 2011, the 17% 22%Manufacturing of Non-machinery Productssector has added 36,500 jobs and is < 1 Yearexpected to add another 38,300 jobs by experience 1 - 4 Yearsbetween October and December 2011. 5 - 10 years > 10 Years?overall growth in the manufacturing sector is reflectedLower substantially in the performance of this sector.The sub-sectors that performed relatively better during third quarter of?2011 were basic metals, fabricated metal products, food products and 59%beverages etc. All these sub-sectors have posted double-digit growthduring this period.? the poor performers were the textiles, apparels tobaccoAmongstproducts, chemical & Chemical products, paper & paper products andwood products. Many of these sectors have registered negative IIPgrowth, especially during the month of August 2011. 2%The continuing higher level of inflation, interest rates, higher cost of? 12% 18%capital, higher prices of raw materials and intermediate goods havefurther stifled the sentiment of this sector.The festival months are expected to boost the demand during the?current and the next quarter and ubring some positivity. Admin / Accountants etcThe sluggish growth of the sector has reflected in relatively lower? Core Activities includinghiring activity within the sector. The estimated increase in employment Marketing and BD by functionwas lower than that was expected earlier. However, the expected Customer Servicegrowth rate during next quarter is marginally higher than the currentquarter in view of expected higher demand level during festival times. Senior Management 68% 5% 13% 16% Campus 17% HR Agency by hiring sources Referrals Social Media Others 49% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Estimated Employment June 2011 September 2011 December 2011 4,589,100 4,625,600 4,663,900 14.2% 14.2% July - September 2011 October - December 2011Note: Employment numbers are given as round figures
  14. 14. Media and Entertainment composition of new hiresBetween June and September 2011, the 1%Media and entertainment sector has added 21%30,900 jobs and is expected to add 32%another 32,800 jobs between October and < 1 YearDecember 2011. 1 - 4 Years by experience 5 - 10 yearsThe Indian Media and Entertainment industry continues to grow at a? > 10 Yearshealthy pace with over 500 Television (TV) channels and producingmore than 1,000 programs every year. Large number of productionhouses catering to film, television and the advertisement industry arean important source of employment generation in this sector.Convergence between entertainment, information and? 46%telecommunication is increasingly impacting India’s overall media andentertainment industries. The draft New Telecom Policy envisages 175million broadband connections in India by 2017, and 600 million by2020, at a minimum of 2mbps download speeds.According to an IAMAI-IMRB joint study, mobile internet usage has?been witnessing a 15% growth q-o-q and the total number of users 4%was estimated to be at 46 million in September 2011. The access of 8% 12%content through mobile internet is likely to accelerate further, nowwith the introduction of 3G services.PWC estimates the Indian Media & Entertainment industry to touch Rs?1,199 billion in 2015 growing at 13.2% CAGR and the television Admin / Accountants etcindustry is expected to grow by 12.9% cumulatively over 2010-15. Itis projected to command half of the entertainment pie by 2015 with a Core Activities including Marketing and BDrobust growth rate of 14.5%. by function? popularity of the direct-to-home (DTH) services may lead to aGrowing Customer Servicereorganization of content delivery mechanism. Increasing access to Senior Managementbroadband internet and mobile telephony will also provide twoalternate new platforms for content delivery.? same period, the radio sector is projected to grow at 19.2%Over theand the Indian print media is expected to expand by 9.6%.Animation, gaming and VFX industry is expected to maintain its 76%growth pace and grow at 21.4%. Benefitting from the mobile valueadded services (VAS) market, the music industry is expected to growat 17.6% over the same period.A FICCI-KPMG study puts the size of the Indian Film industry in 2015?at US$ 2.6 billion.? services have become immensely popular in India. The sectorFM radio 7% 6%is poised for further expansion with Government approval for e-auction of licences under the third-phase expansion of FM radio. FM 28%Phase-III will extend FM radio services to about 227 new cities, inaddition to the present 86 cities, with a total of 839 new FM radiochannels in 294 cities. It will result in coverage of all cities with a Campuspopulation of one lakh and above with private FM radio channels. HR AgencyThis growth in the sector has fuelled the increase in hiring for the core?functions like Marketing and Business Development roles with by hiring sources Referralsmaximum hiring happening through referrals and the social media. Social Media 35% Others 27% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Estimated Employment June 2011 September 2011 December 2011 1,413,000 1,443,900 1,476,700 17.0% 17.2% July - September 2011 October - December 2011Note: Employment numbers are given as round figures
  15. 15. composition of new hiresPharmaBetween June and September 2011, the 4%Pharma sector has added 12,600 jobs and 24%is expected to add another 12,800 jobsbetween October and December 2011. 39% < 1 Year 1 - 4 Years by experience?Pharmaceutical exports increased by 26.05% in FY 2010-11India’s 5 - 10 yearsover the previous year, with the total value of exports reaching up toUS$ 6.54 billion. This is a significant jump from a mere 2.21% > 10 Yearsincrease in exports in FY 2009-10.Drugs and Pharmaceuticals have been the top most FDI recipient?sectors between April ’11 and July ’11 period. Out of US$ 14.54 33%billion of FDI inflow over this period, the Pharma sector corneredalmost US$ 3.0 billion. This is a major jump considering that thecumulative FDI inflow in this sector over the period April ’00 to March’11 was at US$ 1.90 billion only.According to PwC, India is expected to join the league of top 10?global pharmaceuticals markets in terms of sales by 2020 with thetotal value reaching US$ 50 billion. McKinsey suggests that ifaggressive growth strategies are implemented, it has the potential to 5% 15%reach US$ 70 billion by 2020 from US$ 13.1 billion in FY 2010-11. 11%? experts suggest that almost a third of total R&D investmentIndustryby the global Pharma industry, which is estimated at US$ 40-50billion, could be made in India over the next 10 years.? Research in India is growing at an annual rate of aroundContract Admin / Accountants etc20% to 25%. Clinical trials represent 65% of this market and new Core Activities includingdrug discovery makes up the remaining 35%. Marketing and BD by functionHowever, there has been concern in the industry in terms of? Customer Serviceincreasing prices of the Pharma products, especially concerning Senior Managementproducts of Indian Pharma companies recently acquired by MNCs. Assuch, though greenfield FDI will continue be under automatic route,brownfield investments will be allowed through the ForeignInvestment Promotion Board (FIPB) for six months, following which,such acquisitions will have to be routed through the CompetitionCommission of India. This may be a minor dampener to the otherwise 69%rosy growth picture for the sector.The sector witnessed a spurt in hiring for experienced people for core?functions and majority of the recruitments were made throughreferrals. 2% 21% 33% Campus HR Agency by hiring sources Referrals Social Media Others 10% 34% Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Estimated Employment June 2011 September 2011 December 2011 309,000 321,600 334,400 15.2% 15.6% July - September 2011 October - December 2011Note: Employment numbers are given as round figures
  16. 16. Real Estate and composition of new hiresConstruction 1% 24%Between June and September 2011, theReal Estate and Construction sector has 36%added 30,700 jobs and is expected to add < 1 Yearanother 26,200 jobs between October and 1 - 4 Years by experience 5 - 10 yearsDecember 2011. > 10 YearsAccording to a McKinsey Global Institute study, Indias urban?population will soar to 590 million by 2030 from 340 million in 2008, 39%stimulating a near four-fold increase in per capita income. India willneed to invest US $1.2 trillion over next 20 years to modernise urbaninfrastructure and keep pace with this growing urbanisation.? 95% of India’s foreign trade by volume and 70% by value, isAroundtransported through sea. This emphasizes the contribution insustaining growth and development of the Indian economy.Government of India has put in place a National Maritime 4%Development Programme (NMDP) encompassing 276 projects at anestimated cost of US$ 12.52 billion. Under the Maritime Agenda 20%2020, the total capacity of all these ports is expected to reach 3,280 20%MMT, with an expected investment of US$ 26.81 billion in majorports and US$ 37.68 billion in non-major ports. Admin / Accountants etcGovernment has embarked on a massive National Highways?Development Project (NHDP) in the country. Under the first two Core Activities includingphases of the project 14,279 km of National Highways are proposed by function Marketing and BDto be upgraded to 4 or 6 lane at a total estimated cost of US$ 14.56 Customer Servicebillion. The Government of India (GoI) plans to develop 35,000 km of Senior Managementhighways by 2014 under the NHDP.According to IATA, Indias Domestic Aviation Market expansion has?been the strongest in the world - tripling in the past five years,making it the ninth largest aviation market in the world. As perDGCA figures, passengers carried by domestic airlines during Jan-Aug 56%2011 were at 39.63 million, as against 33.41 million during thecorresponding period of previous year, thus registering a growth of18.6 per cent.? expected to cross the 450 million mark of domestic passengersIndia isby 2020. This growth will not be limited just to the metros, but hasalready started to reach the Tier II and Tier III cities. This expansion willnecessitate an enhanced expenditure on developing infrastructure. 5%? installed power generation capacity of India in 2011 isThe total 24% 10%estimated to be around 1,76,990.40 MW. According to the experts,the total demand for electricity will be above 950,000 MW by 2030.This entails massive expansion in all modes of power generation. Campus? real estate and construction sector is predicted to seeThus, theheightened activities over a long period of time in future. However, in HR Agencythe shorter term, there may be many slips between potentials and by hiring sources Referralsreality as many of the infrastructure projects have been either delayedorstalled. Social MediaThe inflationary pressure followed by higher interest rate has increased? 17% Othersthe cost, both for inputs and capital mobilisation. In case of real 44%estate, this has also led to sharp fall in demand. This is reflected in themere 1.2% growth in the contribution of Construction sector inIndia’s GDP for Q1 of FY 2011-12 over corresponding quarter ofprevious year.Increased interest rates has brought down the demand in the housing?sector, directly impacting the growth and job generation. Increase in Salary Lateral Job Shift Estimated Employment Estimated Employment Estimated Employment June 2011 September 2011 December 2011 934,300 965,000 991,200 12.7% 12.1% July - September 2011 October - December 2011Note: Employment numbers are given as round figures

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