Make In India Effect? 2.75L New Jobs Created, 118% Increase in Employment YoY [July-Dec 2014]

Ministry of Labour & Employment has just released their Quarterly report on “Changes in Employment in Selected Cities” which revealed that employment generation has increased 118% as 2.75 lakh new jobs have been created between July and December, 2014.

During the same period in 2013, 1.26 lakh jobs were created.

Analysts and observers of the Human Resource industry have stated that this exponential increase in job creation can be a strong indication that Make In India vision launched by the Modi Govt. is working; and it has brought in a positive change in the overall spectrum.

After the report released, Rituparna Chakraborty, President of the Indian Staffing Federation said, “There is certainly an upswing in the number of jobs created in the country. But that is largely because of improvement in sentiments and the huge optimism around the initiatives of the new government.”

About the Employment Survey

This was the 24^th such survey conducted by the The Labour Ministry, during which they focused on 8 key industries: apparels, leather, metals, automobiles, gems & jewellery, transport, IT/BPO and handloom/powerloom. 2077 sample units were selected across these sectors to analyze the trend and scope of jobs creation.

For the period between October to December 2014, total of 1.17 lakh new jobs were created across these 8 major sectors. Although this survey was conducted for all types of labour, it was the unskilled market which became the focus point.

Using a two stage stratified sampling technique, the survey categorized the whole country on the basis of concentration of industrial and non-industrial units, employment history, type of industrial activity, etc. From each state, two districts were selected for the sampling.

Major Highlights from the Report:

• ITeS and BPO sector created most number of new jobs: 89,000 (we had earlier reported that Govt. is going to unleash a BPO revolution in the country. After this new BPO scheme, more jobs can be created in this sector).

Changes in employment during December 14 over September 14 (In 000’s)

• Textile industry created 79,000 jobs, whereas Leather sector contributed by creating 1000 new jobs
• 1.01 lakh direct employees were hired, on the company’s payroll; meanwhile 16,000 employees were hired on contract.
• Non-Exporting industries increased job creation by 82,000 and Exporting industry added 35,000 new jobs. As per the data available, exporting industry has managed excellent growth rate, and Make in India can be a strong lever for that.
• Overall, between December 2013 to December 2014, 4.21 lakh new jobs were created.

• Overall, the industry which suffered major decrease in employment is Automobile as 23,000 less job were created.
• In the Metal sector, 20,000 fewer jobs were created. Gems and Jewellery industry and Handloom/Powerloom industries witnessed marginal decrease in jobs.

Some of the major developments concerning Make in India vision, which we reported in last few months:

• FoxConn will start manufacturing in India
• Ford to open Rs 6000 crore factory in India
• Microsoft, Motorola to start manufacturing in India
• Sony, Samsung to start manufacturing in India
• Japan will launch 11 townships in India

Modi Govt. has already created a special Ministry of Entrepreneurship to boost job creation in the country, which aims to train and develop 12 lakh youths who enter the job market every year. Last year, Govt. had launched a job portal for the unemployed skilled worker.

The current boom in the job creation market inside India can be a cumulative effect of these initiatives, along with a fast growth experienced by the market. The biggest challenge for the Govt. would be to maintain this high rate of growth and to create more opportunities for job creation.

You can view the report titled “Changes in Employment in Selected Cities” here.