As the economic turmoil in the US continues unabated, one of the major setback comes in the form of a moderated job market in India.
IT/ITES sector depends a lot on the demand from US which is the center for IT outsourcing and negative financial winds hurt the job sentiments around here.
However, according to the latest survey by Assocham the job market in India continues to witness significant growth. The survey revealed the increase in job opportunities for the month of July despite speculations that the manufacturing sector might be slowing down fast.
The city wise opportunity assessment of the survey highlights some key trends in the job market and the regions creating the maximum jobs.
Tier-1 cities continue to create the maximum jobs and had a share of 76% in job creation. As many as 82,254 jobs were created in tier-1 cities in the month of July.
No real surprises here since Tier-1 cities have the maximum concentration of companies and the amenities but what is interesting here is the explosive growth in tier-2 and tier-3 cities when it comes to job creation.
Tier II and III cities registered a tremendous growth rate of 207.5 per cent and 607.6 per cent respectively as in July 2011 over the corresponding month of July 2010
Delhi-NCR region created the maximum jobs in the period with 18.5% followed by Mumbai, Bangalore and Chennai with 12.6%, 10.5% and 7.5% respectively. Hyderabad, Pune, Kolkata and Ahmedabad accounted for 6.9 %, 6.5 %, 5.7 % and 4.6 % respectively
IT Sector Reigns Supreme For Job Creation
- IT sector accounted for 36.3% thereby creating maximum jobs. Banking & Financial Service sector accounted for 8.5% and stood second in terms of job creation
- Manufacturing and engineering sectors accounted for a share of 4.5 % cent and 3.9 %. Telecom, Pharma etc. contributed about 2% each. Interesting to see that the job opportunities in the telecom sector are not high. Given the dynamics in the telecom operator space, I was expecting the job opportunities to be significant
- Sectors like infrastructure/real estate, Event Management, Advertising had a negligible contribution towards job creation. Well, real estate market in India is not doing really great so job opportunities could be limited
All in all, job creation is happening at a decent pace in India and is happening in Tier-1 as well as Tier-2 and Tier-3 cities which is a positive trends. As companies strive to contain operating costs, tier-2 and 3 cities are expected to emerge as cost-efficient alternatives to run operations from.