Why aren’t India Inc hiring yet?
The economic recovery may not create
too many opportunities for job-hoppers and students graduating next year. For,
Indian companies did not lay off many people in the downturn; they are unlikely
to hire in large numbers now for middle-management or entry-level positions.
Strategic hiring
Companies may do strategic hiring for specific skill sets, or there may be some
activity in sectors like infrastructure or power. "Barring a few sectors
like these, it is likely to be jobless recovery,'' Unlike in the West, there
were no large-scale layoffs in India. Most companies bore the brunt of the
downturn. ''There's slack in the system and companies have no intention of
hiring in big numbers,'' Besides, there are no triggers for adding people, say
experts.
Telecom, BPO, Retail drove jobs in
2001
After earlier downturns in 2001 or
2003-04, key sectors like telecom, BPO, telecom and retail banking drove jobs
and absorbed loads of jobs. ''The existing talent pool is fairly large, as the
base has expanded. There will be churn. The usual factors like no increments
will come into play,'' .''There's no significant improvement in corporate
performance. Sales volumes are up only 10 per cent,''
Start-up type jobs on the upswing
But not all is lost. As
multinationals hunt for growth in India and China, they will make investments
but these will be more of the start-up type of jobs. The second wave in telecom
could create 10,000-15,000 jobs in the next 12-24 months,. Insurance has a long
way to go, banking will see some growth and brokerages are picking up.
Retail in correction mode
But, retail continues to be in
correction mode, and won't hire in large numbers unless there's a change in
regulations. Real estate is still not adding people, despite a pick up in
sales. The information technology sector is adding fewer jobs than it did last
year or the year before last. Infosys, for instance, plans to add 18,000 people
this year, against 25,000 in 2008 and 33,000 in 2007. BPOs are also reasonably
staffed and may not add larger numbers.
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