CURRENT EMPLOYMENT SITUATION Indias official unemployment rate last year was 3.8%. The proportion of poor amongst those employed is very high. Only 8% of total employment is in the organized sector. Total employment across sector is just 60% (organized sector) There is a steep decline in the female employment workforce ofabout 30% About 40 per cent of the self-employed in rural areas felt thattheir income of less than Rs 1,500 per month
SHARE OF SECTORS IN EMPLOYMENT-TRENDSECTORS 1999-2000 2004-05 2011-12PRIMARY 59.84 58.44 53.2SECONDARY 17.42 18.18 21.50TERTIARY 22.73 23.38 25.30•Gradual decline in the Primary Sector•Steady increase in the manufacturing sector namelymanufacturing & construction.•Significant increase in the Services sector
•Healthcare, Hospitality and IT/ITeS will create more than 7.31lacs newjobs in the country out 1.6 million new jobs estimated to be created inthe organized sector•Healthcare -2.73lakh, hospitality over 2.30lakh and IT/ITeS are 2.27lakhEMPLOYMENT TRENDS IN VARIOUS INDUSTRIES
HEALTHCARE SECTOR Global healthcare and wellness is a Rs.2295000crore industry,2nd largest after agro-industry. During1990s, Indian healthcare grew at a CAGR of 16%. By 2013, India’s healthcare sector is projected to grow to nearlyRs.204000crore that translates to roughly 7% of GDP. The Indian economy is predicted to expand by at least 5%annually for the next 45 years with healthcare having themaximum share. HSSC( has committed to skill 4.8 millionpeople over the next 10 years in thehealthcare. Healthcare Sector Skill Council
IT/IT-ES•The IT & ITes sector includesIT services, engineering designand R&D services, ITES or BPOand hardware.•IT Sector accounts for 12% ofthe total workforce making itthe largest employer in theorganized sector.•The industry is expected to grow by 19 per cent during FY 2012-13.•Employee base in the rural areas is expected to increase by over10 times by 2013-14, compared to 5000 in 2009-10.
REAL ESTATE/CONSTRUCTION Next to Agriculture, Real Estate is the second largestemployer in the economy. the Real Estate sector contributes around 5 % to the nation’sGDP. Employs 17% of total workforce. Despite of the global slowdown, manufacturing, have steadydomestic demand. By 2016 the size of the Indian automobile industry isexpected to grow by 13%, to reach US$20-159 billion
SELF EMPLOYED: ENTREPRENEURS One in every ten Indians is engaged in some entrepreneurial activity India ranks among the worlds worst countries at encouragingentrepreneurs. For ease of starting a business, India is ranked 166thout of 183 countries. REASONS• Reams of red tape• poor infrastructure• inadequate financial resources.• Then there is the question of corruption and bribery,• Indians are averse to risk taking and would rather settle for securesalary paying jobs.
OTHER PROMISING SECTORS: The education sector will add more than one lakh jobs. The communication segment will generate around 93,300 jobs andgrow at a rate of 3.5%, The FMCG sector in India is at present, the 4th largest. the consumerretail sector will add over 54,000 jobs this year. Aviation will give direct and indirect employment to 1.7 millionpeople. The Media & Entertainment Industry in India is expected to reach Rs1,457 billion by 2016. The industry achieved a growth of 12% in 2011 Real estate sectors contribution of 1,44,700 jobs translates into agrowth rate of 16.8%
PROBLEMS IN EMPLOYMENT Corporate need employable graduates. only 25 percent of graduatespassing out from engineering colleges were directly employable every year. Up to 15 per cent of the 5,00,000 jobs in investment banking coulddisappear in the next five years as the euro zone crisis and stiffer regulationhammers revenue, profitability and risk-taking, As a result of the Euro Zone crisis, there would be cautious hiring in thebanking-related IT hiring and retail sector. Senior BJP leader Uma Bharti on Saturday held that FDI in multi-brandwould render crores unemployed once FDI is allowed. 56 % of Indians feelthat the FDI in retail would throw the kirana stores out of business. The employment potential emanating from faster growth manufacturingand services could not be fully exploited due to lack of policy support.
SCOPE FOR FURTHUR STUDIES: FDI FDI in retail can create 3 million jobs in three yearsincluding both direct and indirect jobs.- In 10 years time 10 million jobs would be created(4 million direct jobs and around 5-6 million indirectjobs).- One job would be created for every 250 square feet areain retail.-The retail industry is estimated to grow at 20% perannum. FDI in insurance sector from 26% to 49%, without havingany impact on the public insurance companies is going tomake way for employment. ¨FDI in aviation sector will help in generatingemployment in front hand and back hand jobs.