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'Meltdown hits India's job outlook'
By siliconindia
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Thursday, 24 April 2008, 18:25 IST
New Delhi: Despite a high growth in Indian economy, both employment and business outlook in this country was hit by the global meltdown. Staffing company TeamLease, in its quarterly employment outlook report, says that India's net employment outlook index dipped six points to stand at 74 points this quarter. Moreover, there is a 9 percent decrease in the business outlook index as well and it stands at 70 points compared to the previous quarter.
"With the not so positive pointers in the market right from dollar depreciation, subprime fiasco followed by U.S. recession and finally the lacklustre performance of Indian bourses, have definitely impacted the employment growth in the last few months. The IT/ITeS sector is the worst hit; with the U.S. economy conundrum having an implication on hiring sentiments with a wait and watch approach in India," says Sampath Shetty, VP, TeamLease Services.
The employment outlook in the telecom sector has gone up but IT, manufacturing and the engineering sectors have declined, says the report. Among the cities, there is an increase in employment outlook index points of Mumbai, Delhi and Pune while Bangalore, Chennai, Hyderabad, Kolkata and Ahmedabad have seen a dip. As for hiring, while Class-I cities have seen a growth, metros have seen a dip. In fact, employers have shown a preference for hiring from Class II, Class III and rural areas as well.
With the not so impressive salary hike in the current appraisal year, organizations foresee a lot of lateral movements over the next quarter.
No wonder, attrition has been bug bear this quarter. The report says, in the past three months, attrition rates across Chennai and Bangalore was above 19 percent.
In fact, Chennai has seen the highest attrition rates compared to other metros in the past one year. As for hiring requirements by management levels, there has been a lot of optimism. The intention to hire across all managerial levels is gradually on the rise, the report suggests.