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The Economic Times

Jobs growth in last fiscal was the lowest in past 3 years

Through three quarters of FY18, stock investors made spectacular returns. But for jobseekers with Indian companies, the last fiscal year must have been one they might want to forget rather quickly because jobs growth was the lowest in the last three years.

Jobs addition in the last fiscal was 3.3 per cent, according to a CLSA report. It was 3.7 per cent and 4.2 per cent in the previous two fiscals, respectively. However, wage growth adjusted for CPI inflation was among the highest in the last five years in FY18.

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In the absence of any official data, the brokerage used statistics from the listed space to arrive at these numbers. Outsourcing companies, including Quess Corp, Team Lease and SIS, logged the highest growth rates. Non-Banking financial companies (NBFC) witnessed the secondhighest job growth rate.

Headcount growth in these two sectors in FY18 was 21 per cent and 16 per cent, respectively. Outsourcing companies contributed 2.1 per cent of the total 3.3 per cent growth, while NBFCs contributed 0.7 per cent. On the contrary, power and telecommunication sectors witnessed highest deceleration in job creation at 8 per cent and 3 per cent, respectively.

IT and public financial companies remain the largest employers with 21.6 per cent and 16.6 per cent (together 38.2 per cent) of total headcount in the listed space. The private sector, which had 76 per cent share in employment, witnessed a 5.1 per cent growth in headcount, while the public sector saw a contraction of 1.8 per cent.

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