Ma Foi Randstad

Employment Trends Survey

Wave 3 - 2011

in this report...

? Indian Economy Sluggish but not Panicky ? Methodology Data and ? of Employment Generation in Different Sectors Estimates
? Financial Services and Insurance Banking, ? Education, Training and Consultancy ? Energy ? Healthcare ? Hospitality ? Information Technology & Information Technology Enabled Services ? Manufacturing - Machinery and Equipment ? Manufacturing - Non-Machinery Products ? Media and Entertainment ? Pharma ? Real Estate and Construction ? Trade including Consumer, Retail and Services ? Transport, Storage and Communication

? Concluding Remarks ? Appendix

A1: Expected Increase in Employment across Different Sectors A2: Expected Increase in Salary across Different Sectors - Lateral Job Shift A3: Composition of New Hires by Experience A4: Composition of New Hires by Functional Areas A5: Share of Different Hiring Sources for New Hires A6: City-wise Expected Employment A7: City-wise Likely Increase in Salary - Lateral Job Shift A8 : City-wise Share of Different Experience Brackets amongst New Hires A9: City-wise Share of Different Functional Areas amongst New Hires

The Ma Foi Randstad Employment Trends Survey (MEtS), conducted by Ma Foi Randstad, Indias No. 1 Integrated HR services company, is a study on the Indian employment trends and opportunities. Started in November 2004, MEtS was conducted once a year, till 2008. Considering the several dynamic shifts in employment, even within a years time, MEtS was therefore converted to a quarterly survey from 2010, to capture the changes in employment scenario in India from one quarter to another. The prime objective of this employment survey is to understand the employment trends in the organized sector on a quarterly basis. The present survey captures the employment situation in the organized sector for the third quarter of 2011 (from June to September 2011) and the likely scenario for the fourth quarter of the year (October to December 2011). The study is based on a sample survey conducted for 676 companies across 13 different sectors of the economy, mainly during the month of September 2011. The feedback was gathered from the top HR personnel or top management of the companies who could share valuable insights regarding the previous as well as next quarter scenario about employment related issues. The major focus of the survey is to estimate the changes in employment scenario across sectors and space. The other issues highlighted in the survey are changes in salary for the lateral hiring, recruitments by experience categories and hiring by different functional roles. The report is presented in four sections. The first section, Section A discusses the recent trends and an overall view of the Indian Economy. This section is followed by Section B that provides insights about the data and methodological aspects of the study. Section C presents a picture of the changing pattern of the employment for different sectors of the economy. A snapshot of the changing scenario for selected cities is also given in this section. The final section, Section D concludes the study highlighting key issues.

Indian Economy

sluggish but not panicky

The Gross Domestic Product (GDP) of India grew by 7.7% in Q1, 2011-12 period, as compared to 8.8% growth rate for Q1, 201011. Agriculture, Forestry & Fishing and Electricity, Gas & Water Supply sectors showed significantly higher growth in Q1 of current financial year as compared to the last year. Trade, Hotels, Transport & Communication Sectors retained their high growth trajectory. On the other hand, Mining & Quarrying and Construction Sectors experienced major fall in growth rate. Manufacturing, Community, Social & Personal Services Sectors also experienced a significant fall. In relative terms, the fall in fortune of the Financial Sector was minor. The draft approach paper for the Twelfth Five Year Plan (201217) released in August 2011 targets an annual GDP growth rate of 9%. Earlier, India had achieved an average growth rate of about 9% during 200408, which was interrupted by the global financial crisis. In the aftermath of the crisis, average growth rate has dropped by about one percentage point, to 7.8% during 200911. In 201112, the terminal year of the Eleventh Plan, RBI expects growth to be about 8 per cent. The IMF has forecasted India's economy to grow at a slower pace of 7.8% in 2011-12 and 7.5% in 2012, down from its June forecasts of 8.2% and 7.8% respectively. Considering Indias growth experience in the post financial crisis period (2009-11) and the current adverse world economic outlook, the next Twelfth Five Year Plans target growth rate may not be achieved, more so if the current high inflation rate persists for a longer time period. According to a Reserve Bank of India study, inflation has a negative effect on growth when the wholesale price index (WPI) based on inflation goes beyond the 5.5% per cent threshold. However, India, along with China, will continue to be one of the fastest growing economies. India's food inflation continued its northward movement in the week ended September 24, as it rose to 9.41% against 9.13% in the previous week. On a week-on-week basis, the food articles index rose a marginal 0.2% to 197.7, recording the eighth successive week of rising prices. This is however, lower than last 52 week average of 10.88%. The continued increase in prices despite good rains in the last two years indicate a structural shift in demand and supply, due to the rise in rural income and labour supply constraints. The WPI for the week ended 24th September, 2011 for primary articles showed some easing, to 10.84% in the week ended September 24, as against 11.43% during previous week. In the corresponding week, last fiscal primary article inflation was at 19.58%. The 52 week average is at 14.50%. The non-food inflation in the week under review, slowed further to 10.77%, as against 12.89% in the previous week. In the corresponding week of the last fiscal, it was at 24.73% and the 52 week average is at 24.31%. In its bid to control inflationary pressure, RBI had increased the repo rate by 350 bps, which is from a low of 4.75% (repo rate) to 8.25% in the past 18 months. At one hand this has increased the input costs, while on the other, it has raised concerns over the moderation of loan demand and the increase in asset-quality risks for the financial sector. The twin effects of inflationary pressure and increased capital costs, is also reflected in the lower advance tax payment, by India Inc. for the Q2 of FY 2011-12. The advance tax payment by top 100 companies rose to a modest 9.9% for the July to September quarter from a year ago, as against 19% for the April-June quarter. This suggests that the corporate profit growth is likely to be muted in the second quarter. Production in eight core industries (Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, Electricity) grew at a slower pace of 5.3%, during the April-August 2011 period, as compared to 6.3% growth rate over the same period last year. The y-o-y growth rate of production of these eight industries was at 3.52% for the month of August 2011, almost halved when compared to July 2011 (7.47%). The growth in IIP fell sharply, touching a two year low of 3.3 % in the month of July 2011, after a 8.8% rise during June 2011. The manufacturing sector, which constitutes over 75% of the index, expanded by 2.3 % in July 11, as against 10.8% in July 10 and 10.3% during June 11. April to July cumulative growth rate also decelerated from 10.5% last year to 6.1% this year. The mining sector expanded by 2.8 % in July 11 against 8.7% in July 10. The growth of consumer goods sector was higher at 6.2 % compared to 5.8% last July. The growth was mainly due to the turnaround in the consumer non-durables sector (-0.9% to 4.1%). The consumer durable production growth decelerated from 14.8% last July to 8.6% in July 2011. Electricity generation grew by 13.1 % in July, against 7.9 % during June 2011 and 3.7% in July 2010. The capital goods sector fell by 15.2 %, compared to 38.2 % during June 2011 and 40.7% in July 2011. From April to July 2011, industrial output grew by 5.8%, which was lower than 9.7% achieved for the corresponding period last year. The July growth rate at 3.3%, is also lower than the corresponding figures of June 11 (8.8%) & July 10 (9.9%). Economic slowdown has resulted in lower than budgeted collection of tax revenue coupled with lower collection under small savings schemes. This may lead to a higher level of Government borrowing than that was projected for the second half of the fiscal. The unfavourable equity market condition has also forced the Government to put its disinvestment programme on hold. It is now projected that the Government will borrow Rs 528 billion more from the bond market, during Oct 11 Mar 12 period, than what was proposed in the budget in Feb 11. The benchmark 10-year bond yield spiked 8 basis points to 8.43 per cent immediately after the announcement and the benchmark 5year swap rate rose 12 bps to 7.15 per cent and the one-year rate rose 6 bps at 7.96 per cent. Volatile crude oil prices and sharp rupee depreciation has forced oil companies to hike petrol prices by Rs 3.14 per litre. The fuel & power prices remained stable, with a y-o-y inflation rate of 14.69% for week ending 24th September, 2011. This was higher than fiscal inflation rate of 10.80% for the last corresponding week and a 52 week average of 12.41%. Oil imports during August 11 were valued at US $ 10,278.7 million, which was 48.72% higher than oil imports worth US$ 6,911.6 million in August 10. Oil imports during April-August, FY 2011-12 were valued at US$ 52,251.2 million which was 27.09% higher than corresponding period last year.

Exports during August 11 were valued at US$ 24,312.53 million which was 44.25% higher in than US$ 16,854.16 million worth of exports in August 10. Cumulative value of exports for the period April-August in FY 2011 - 12 was US$ 134,502.54 million as against US $87,218.51 million last year, registering a growth of 54.21%. Imports during August 11 were valued at US $38,354.15 million (Rs.173,663 crore) representing a growth of 41.82%. Cumulative value of imports for the first five months of FY 2011-12 was at US $189,393.77 million against US $134,928.14 million last year, thus growing at 40.37%. The cumulative trade deficit was estimated at US $54,891.23 million, which is higher than the US$ 47,709.63 million deficit during April August of FY 2010-11.

The rupee has been the worst performer among the Asian currencies over the last few months. The rupee fell 5.9% against US$ in September and is currently quoted at 49.023 against the 2011 high of 43.855 that was reached in late July. This will have a major impact on Indias import bill, particularly for oil imports. If the international price of oil does not ease, weak rupee condition is likely to play a major role in increasing the inflation, which is already high. Over the period April-July of current financial year, US$ 14.54 billion of FDI inflow came into India. This was 92% higher than the inflow figure, for the corresponding period of last year. Around 35% of FDI came through the Mauritius route. Singapore, UK and Germany were the other three major points of origination. Drugs and Pharmaceuticals sector was the major attractor (US$ 3.00 billion), followed by Services sector (US$ 2.46 billion) and Telecommunication sector (US$ 1.74 billion).

data sources
The study has used both primary and secondary data to arrive at different estimates. Secondary data from various sources have been used for this study. Historical data on the manufacturing sector has been culled from various rounds of the Annual Survey of Industries (ASI) and publications of the Central Statistical Organization (CSO). Apart from these sources, the others used for the study are various surveys of the National Sample Survey Organization (NSSO), Labour Statistics of India and Statistical outline of India. The above sources have the advantage of almost universal coverage of the organized sector within their specific domains. However, data from most of these secondary sources are not up-to-date. Therefore the estimation procedure is used to take care of this problem, by using up-to-date figures on sectoral GDP (Gross Domestic Product) and Index of Industrial Production (IIP). Once estimates of base sector level employment was obtained, the data captured through primary survey of 676 firms across sectors were used to arrive at estimates on different parameters. Rigorous estimation procedures were used along with the primary survey data of the companies to estimate parameters for the third quarter of the year 2011 and expectations regarding the fourth quarter of 2011.
Coverage of Primary Survey Sl. No. Sector No. of companies covered

1 2 3 4 5 6 7 8 9 10 11 12 13

BFSI Education, Training and Consultancy Energy Healthcare Hospitality IT & ITES Manufacturing of machineries and equipments Non-machinery Manufacturing Media and entertainment Pharma Real Estate and Construction Trade including CRS Transport, Storage and Communication

54 55 28 40 61 57 82 83 35 39 55 44 43

estimates of employment generation in different sectors

Despite the slowdown in Indian economy, it is expected to grow at a healthy rate of 7.8% to 8.0%. As a result, although there will be sectoral variation in the employment outlook among the sectors, new jobs will continue to be added, albeit at a slower pace. Global meltdown and continuing high domestic inflation has resulted in increase of input costs. Concomitant series of increase in policy rates by Reserve Bank of India has increased the capital cost thus adversely affecting the rate sensitive sectors like real estate and automobile, by decreasing their demand. The lower general demand level due to reduced disposable income has also played a role in weakening the job market. In certain sectors like Construction, Governments failure towards quick implementation of infrastructure projects has affected the job generation and seasonal cyclicality in demand is another reason lower employment growth in sectors like retail and hospitality. The overall change in employment in Q2 of FY 2011-12 and change expected in the Q3 of FY 2011-12 is presented below in the following table. More detailed sectoral level analysis highlighting the prospects of these individual sectors, which will help in analysing why the employment numbers are as they are, is presented subsequently.

Expected Employment Increase in Different Sectors Employment

June 2011

Sectors

Expected increase in Employees

2011

Increase in Employment
Jul - Sep 2011 Expected Jul - Sep 2011 Estimated Oct - Dec 2011 Expected

Per cent increase

Jul - Sep 2011 Estimated Oct - Dec 2011 Expected

BFSI Education, Training and Consultancy Energy Healthcare Hospitality IT & ITES Manufacturing of machineries and equipments Non-machinery Manufacturing Media and entertainment Pharma Real Estate and Construction Trade including CRS Transport, Storage and Communication

939,800 9,839,200 910,100 3,492,700 6,205,600 2,010,000 1,164,600 4,589,100 1,413,000 309,000 934,300 671,500 2,709,500

80,700 107,500 24,900 248,500 218,200 183,000 68,400 223,400 126,100 49,400 144,700 38,600 93,300

15,300 24,500 7,900 63,800 54,400 55,500 14,500 36,100 31,300 11,300 29,600 10,800 14,200

14,800 21,600 7,500 60,400 48,400 46,600 13,800 36,500 30,900 12,600 30,700 9,700 12,500

11,900 20,700 6,600 58,700 41,600 41,600 14,000 38,300 32,800 12,800 26,200 9,900 11,300

1.57 0.22 0.82 1.73 0.78 2.32 1.19 0.80 2.19 4.08 3.29 1.44 0.46

1.27 0.21 0.73 1.68 0.67 2.07 1.20 0.83 2.32 4.14 2.80 1.47 0.42

Banking, Financial Services and Insurance

Between June and September 2011, the BFSI sector has added 14,800 jobs and is expected to add another 11,900 jobs between October and December 2011.
RBI raised the policy rate twice in the last quarter to 8.25% in its fight ? against inflation, following up its earlier 10 increases. This will further increase the cost of Fund for both the banks and the borrowers. Some of the rate sensitive sectors like real estate and auto industry are already experiencing a slowdown in demand. Slower credit growth will also limit the ability of banks to fully pass on the increase in cost of fund, putting pressure on its margin. ?banks had managed to reduce their Gross NPA figures from Indian 11.4% in 2001 to 2.4% in 2010. But the increase in the interest rate and faltering growth potential, both domestic and international, has raised the prospect of increase in bad debts in the books of the banks. ? Given the current inflationary situation, even if the policy rates are not raised further, the interest rate is expected to remain at an elevated level with no cut expected anytime soon. The pressure on Indian banks is expected to continue for some time. ? Banks raised deposits Rs. 3,223 billion during the April-September period, but could disburse credit worth Rs. 1,511 billion only, implying an incremental credit-deposit ratio of 0.47, which is the lowest in last four years. ? Continuing with the negative annualised premium equivalent (APE) growth over the last 3 quarters of 2010-11, the slowdown in Life Insurance sector continued in Q1 of 2011-12 with the industry registering negative APE growth of 23%. The private sector fared even worse at negative growth of 40%. The demand shift towards traditional Insurance products and away from investment products is cited as the main reason. ? The General insurance industry registered 22.35% growth during Q1 of FY2011-12 in terms of gross written premium. It is estimated to grow at over 18% till 2015. In the near term, the premium income from the largest sub-segment of Motor Insurance may slow down due to faltering auto sales. The second largest vertical - Health Insurance is expected to retain its positive outlook. The growth in premium is expected to continue at a compound annual growth rate (CAGR) of around 28.5% during FY12-FY14. ? the employment generation by the BFSI sector in the JuneOverall September 11 quarter has been subdued. It is also expected to remain so unless the underlying economic factors show signs of improvement.

composition of new hires

3% 16% 32%

< 1 Year

by experience

1 - 4 Years 5 - 10 years > 10 Years

49%

2% 11% 19%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management

by function

68%

13%

5%

16%

Campus
17%

HR Agency Referrals Social Media Others

by hiring sources

49%

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

939,800

954,600

966,500

12.2%
July - September 2011

9.1%
October - December 2011

Note: Employment numbers are given as round figures

Education, Training and Consulting

Between June and September 2011, the Education, Training and Consultancy sector has added 21,600 jobs and is expected to add another 20,700 jobs between October and December 2011.
With the ? Right to Education (RTE) Act 2009 having come into effect from April 2010, it is now a fundamental right of all children to demand eight years of quality elementary education. The effort to expand educational access is severely constrained by the lack of suitably qualified, appropriately-trained human resources in adequate numbers. ? There are half a million vacancies of teachers in the country and another half a million teachers are required to meet the RTE norms on pupil-teacher ratio. The demand in the secondary education segment will also see commensurate increase. ?18 percent of all Governments education spending or about About 1.12% of GDP is spent on higher education today. ? Five Year Plan targets to raise it to 25% and 1.5% The 12th respectively, which means an additional allocation of about Rs.25,000 crore to higher education. ? participation in the higher education will also continue to Private expand, especially in Management, Medicine and Technology segments. Similar increased private participation will be seen in the expanding pre-school sector and skill development initiatives. The Preschool education market is set to reach US$ 1 billion mark by 2012 against US$ 750 million at present. ? The upgradation of Industry Training Institutes/ Industry Training Centers to launch and scale up technology specialisations across all Vocational Training Institutes is also expected to increase under new Public Private Partnership initiatives. ? The newly setup IIMs, IITs, IIITs, IISERs and Central Universities are on a recruitment spree along with the existing institutions. This coupled with increased Government focus on research is expected to result in significant reverse brain drain, also aided by current adverse economic conditions prevailing in most of the advanced economies. ? The employment generation across quarters may not be linear, as most of the hiring takes place before the beginning of a new academic session, generally between January and June period. This is also reflected in the June September 11 employment figures for the sector.

composition of new hires

4%

30% 30%

< 1 Year

by experience

1 - 4 Years 5 - 10 years > 10 Years

36%

3% 12% 23%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management

by function

62%

15%

8%

17%

Campus
16%

HR Agency Referrals Social Media Others

by hiring sources

44%

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

9,839,200

9,860,800

9,881,500

11.5%
July - September 2011

11.0%
October - December 2011

Note: Employment numbers are given as round figures

Energy
Between June and September 2011, the Energy sector has added 7,500jobs and is expected to add another 6,600 jobs between October and December 2011.
The IIP ? for Electricity declined in August 2011 (149.4) compared to July 2011 (152.1). Compared to January 2011 (146.4), it has increased only marginally. At y-o-y level, it has increased by 9.5% compared to August 2010 (136.4). ? Considering coal based power generation constitutes more than half of Indias installed capacity, the countrys power scenario will continue to be under stress as the shortage of coal persists. The power ministry has estimated that the country has lost four billion units (bu) of power generation between April and September this financial year, due to a severe dip in coal supply from Coal India and its arms. According to Power ministry estimates, Coal India and its associates may achieve only 310 million tonnes of production in 2011-12 against a target of 347 mt. Coal Ministry is also yet to sign fuel supply agreement for the 25,000 MW capacity power plants that came up in last three years. The situation has been further aggravated by volatile international prices of coal. ? to coal, gas based power generation units are also facing Similar supply shortages, leading to lower plant load and stagnation in capacity expansion. Considering the share of Thermal power in Indias overall power generation capacity, the stunted growth of this subsector may be responsible for the lower than expected employment generation in the Energy sector. ? The government plans to add 100,000 MW during the 12th Plan to the current capacity of 174,000MW. However, Indias track record in adding power generating capacity is poor. In the five years to 2007, the country added 20,950MW of capacity, against a target of 41,110MW. The situation remains grim for the 11th Plan target, with the government set to miss the plan target of 78,577 MW. So, though there is huge unmet demand and significant growth potential, the actual expansion of the sector is uncertain. Successful implementation of expansion plans can result in generating substantial number of jobs. ? There will be increased demand for trained manpower for operating the smart grid technologies, systems and related software, as power industry in India is expected to undergo a paradigm change, fuelled by legislative and regulatory activities. The sector would require power instrumentation engineers to design and produce these new equipments.

composition of new hires

1%

26%

51%

< 1 Year 1 - 4 Years 5 - 10 years > 10 Years

by experience

22%

2%

20% 27%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management

by function

51%

12%

6%

14% 36%

Campus HR Agency Referrals Social Media Others

by hiring sources

32%

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

910,100

917,600

924,200

16.0%
July - September 2011

15.0%
October - December 2011

Note: Employment numbers are given as round figures

Healthcare
Between June and September 2011, the Healthcare sector has added 60,400 jobs and is expected to add another 58,700 jobs between October and December 2011.
The Healthcare Industry has witnessed a paradigm shift in the last five ? years and has grown from a unorganized to organized sector. The contributing factors for this shift are growing Indian economy resulting in increasing disposable income level of people, increased penetration of health insurance sector, demographic shift, expanding medical tourism, increased prevalence of lifestyle related diseases and enhanced healthcare awareness, at least among the urban population. ? The Indian Healthcare Industry is currently estimated at US$ 40 Billion. The industry is expected to grow to US$ 79 Billion by 2012 and ~ US$ 280 Billion by 2020 according to a KPMG report on the sector. ? The hospital sector is experiencing rapid increase in investments from Corporates. Most of the existing players have announced expansion plans and many of large companies with no or very little healthcare presence have announced huge investment plans in Healthcare Delivery. ? also a boom in the diagnostic industries along with the There is growth in hospital infrastructure in the country. New investors including the MNCs are playing a key role in increasing the employment base in the sector, through expanding their presence in Tier I and Tier II cities. ? There have been a number of noteworthy initiatives taken up by the Indian government to boost the Healthcare sector in the country like 100% FDI under automatic route and National Rural Health Mission. Expansion is also taking place in the number of medical colleges and their intake capacity. Six new AIIMS category medical institutions are coming up along with upgradation of many existing colleges. ? This sector, however, suffers from bottlenecks in manpower supply, as the current number of seats in medical and nursing colleges is woefully short of requirement, as reflected in the low doctor to population ratio. This is expected to limit growth potential in the shorter term. ? An ASSOCHAM study has estimated the current worth of Indian medical tourism industry at around Rs.4.5 billion with about 0.85 million foreign patients annually getting treated here. These numbers are expected to grow to Rs. 10.8 billion with 3.2 million foreign patients expected to visit India by 2015. However, with the current global economic downturn, the inflow of foreign patients in the JuneSeptember 11 period has been lower than the trend. ? The increase in the price of pharmaceutical products has led to the review of brownfield FDI policy in the sector.

composition of new hires

2%

29%

36%

< 1 Year

by experience

1 - 4 Years 5 - 10 years > 10 Years

33%

4%

18% 28%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management

by function

50%

7% 19% 5%

Campus HR Agency

by hiring sources

12%

Referrals Social Media Others

57%

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

3,492,700

3,553,100

3,611,800

17.0%
July - September 2011

16.4%
October - December 2011

Note: Employment numbers are given as round figures

Hospitality
Between June and September 2011, the Hospitality sector has added 48,400 jobs and is expected to add another 41,600 jobs between October and December 2011.
This is ?one of the booming sectors of Indian economy. According to World Travel and Tourism Council, the tourism industry in India is expected to expand from its current size of Rs. 4.4 billion to Rs. 21 billion in 2022. ? period of January to July 2011, the Hotel and Tourism sector Over the has seen an FDI inflow of Rs. 2.26 billion. ? Tourist Arrivals (FTAs) during the Month of September 2011 Foreign was 0.40 million as compared to FTAs of 0.37 million in September 2010 and 0.33 million in September 2009. FTAs during the period January-September 2011 were 4.22 million with a growth of 10.0 %, as compared to the FTAs of 3.84 million with a growth of 8.0 % during January-September 2010 over the corresponding period of 2009. The FTA in 2016 is expected to be 11.24 million. ? With expanding Indian economy, this number will be further bolstered by business travelers. The domestic tourism sector also enjoyed a healthy growth rate of 10.7% in terms of number of visitors (740.21 million) in 2010 calendar year. Number of Domestic Tourist Visits (DTVs) in 2016 is projected to be at 1451.46 million. ? attractiveness of India as a destination for medical tourism Growing will also provide significant support. An ASSOCHAM study has estimated the number of foreign patients visiting India to grow to 3.2 million by 2015 from around a million currently. ? However, despite high growth potential of the hospitality sector over the medium to long term, it may face glitches in the short term affecting the potential for (permanent) employment generation. ? In the face of uncertainty in demand, this sector is also seeing increased hiring of need based temporary hands and outsourcing. Seasonal factors like monsoon and flood also dampened the mood in the June-Sept 11 quarter. ? According to a National Skill development Corporation study on skill gap in hospitality sector, the overall employment by 2022 in the Tourism Industry (in Hotels and Restaurants and Tour Operators) is estimated to be about 7.2 million persons, generating employment opportunity for 2.6 million more people. ? the requirement though will be in the unorganized sector. A Bulk of large portion of the demand for human resource will occur in the areas of Front Office Staff, F&B Services and Kitchen, Housekeeping staff, Ticketing and Sales, Tour Guides.

composition of new hires

1% 22%

36%

< 1 Year

by experience

1 - 4 Years 5 - 10 years > 10 Years

41%

3% 7%

28%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management

by function

62%

14%

33% 11%

Campus HR Agency

by hiring sources

Referrals Social Media Others

3%

39%

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

6,205,600

6,254,000

6,295,600

15.0%
July - September 2011

13.3%
October - December 2011

Note: Employment numbers are given as round figures

IT & ITeS
Information Technology and Information Technology Enabled Services Between June and September 2011, the IT & ITES sector has added 46,600 jobs and is expected to add another 41,600 jobs between October and December 2011.
The draft ? national policy on information & communications technology, 2011 unveiled here on Friday by Telecom & IT Minister, Mr. Kapil Sibal, aims at increasing the revenues of the IT & ITeS industry to US $300 billion by 2020. Presently, with the exports contributing to the majority of the $80 billion earnings, the policy proposed is expected to boost the growth of indigenous demands and market. The proposed policy also aims at formulating fiscal and other incentives to attract investment in this sector in Tier II and III cities. ? The computer software and hardware jointly with telecommunication sector has seen an FDI inflow of Rs. 7.68 billion, accounting for 11.81% of total FDI inflow in the corresponding period. This is significantly lower than the long term (Apr 00 Jul11) trend share of 15.96%. ? NASSCOM is of the view, that the recent developments in the US and Europe would not affect the Indian IT industry much and it will pursue a growth path owing to augmented domestic demands and expanding in emerging markets like Brazil and Russia. On the contrary, ASSOCHAM expects the macro fiscal insecurity in US and Europe having an adverse impact on the markets, considering their share in exports of Indias $80 billion IT industry. This reflects some degree of uncertainty among the industry players. ? led to many IT firms becoming cautious in their hiring. This This has has been further accentuated by the decline in attrition rates since the economic downturn, which has come down to 15% from 25% in the last couple of quarters. Many of the firms are hiring based on their immediate project needs ? IT companies have also been very active in hiring freshers from The big campus early this year. But with lower attrition rates and uncertain future flow of new projects, the initial calculations may have gone wrong. There are reports of delay in on-boarding the new campus hires, with many of those who completed studies in June/July still to get their joining letters. This will also limit scope of new hiring, at least at the junior level, for some time. ? While the sluggish global economy poses a risk to pricing and new orders, a weak rupee on the other hand, may help boost margins. There has been about 7.8% depreciation in INR against US$ in the last 45 days and further depreciation is possible in light of continued global risk aversion. If the depreciation holds, it may prove positive for IT sector companies subject to their hedging positions.

composition of new hires

2%

28%

30%

< 1 Year

by experience

1 - 4 Years 5 - 10 years > 10 Years

40%

3% 7%

28%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management

by function

62%

9% 17%

18% 12%

Campus HR Agency

by hiring sources

Referrals Social Media Others

44%

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

2,010,000

2,056,600

2,098,200

15.6%
July - September 2011

15.6%
October - December 2011

Note: Employment numbers are given as round figures

Manufacturing
Machineries and Equipment Between June and September 2011, the Manufacturing of Machineries and Equipment sector has added 13,800 jobs and is expected to add another 14,000 jobs between October and December 2011.
Overall, ? the manufacturing sector growth has remained almost similar during last few months and the IIP is hovering around 175 points since April 2011. According to the latest Government release, IIP during July-August 2011 has gone down marginally by about 5 points. ? Goods sector performed almost at the same level during JulyCapital August 2011, as compared to the second quarter of the year. ? The sub-sectors such as Motor Vehicles, Trailers, other Transport Equipments, Radio, Television and other Communication Equipments have posted high positive growth during this quarter. ? The performance of the Electrical Machineries sector remained poor. ? in cost of capital has also played a dampening role for new Increase investment in the sector. ? The performances of these sectors have resulted in the lower level of job additions as against expectations. The expectation for the next quarter is also in the similar lines. ? The reported salary hike for lateral shifting during the third quarter was lower than second quarter and expected to remain almost at the same level during the next quarter. ? the hiring mood within the sector is not yet promising. Overall,

composition of new hires

3%

23%

27%

< 1 Year

by experience

1 - 4 Years 5 - 10 years > 10 Years

47%

1% 11% 22%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management

by function

66%

13%

5%

16%

Campus
17%

HR Agency Referrals Social Media Others

by hiring sources

49%

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

1,164,600

1,178,400

1,192,400

13.0%
July - September 2011

12.8%
October - December 2011

Note: Employment numbers are given as round figures

Manufacturing
Non-machinery Manufacturing Between June and September 2011, the Manufacturing of Non-machinery Products sector has added 36,500 jobs and is expected to add another 38,300 jobs between October and December 2011.
Lower ?overall growth in the manufacturing sector is reflected substantially in the performance of this sector. 2011 were basic metals, fabricated metal products, food products and beverages etc. All these sub-sectors have posted double-digit growth during this period. ? the poor performers were the textiles, apparels tobacco Amongst products, chemical & Chemical products, paper & paper products and wood products. Many of these sectors have registered negative IIP growth, especially during the month of August 2011. ? The continuing higher level of inflation, interest rates, higher cost of capital, higher prices of raw materials and intermediate goods have further stifled the sentiment of this sector. ? The festival months are expected to boost the demand during the current and the next quarter and ubring some positivity. ? The sluggish growth of the sector has reflected in relatively lower hiring activity within the sector. The estimated increase in employment was lower than that was expected earlier. However, the expected growth rate during next quarter is marginally higher than the current quarter in view of expected higher demand level during festival times.
? The sub-sectors that performed relatively better during third quarter of

composition of new hires

2% 17% 22%

< 1 Year

by experience

1 - 4 Years 5 - 10 years > 10 Years

59%

2% 12% 18%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management

by function

68%

13%

5%

16%

Campus
17%

HR Agency Referrals Social Media Others

by hiring sources

49%

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

4,589,100

4,625,600

4,663,900

14.2%
July - September 2011

14.2%
October - December 2011

Note: Employment numbers are given as round figures

Media and Entertainment

Between June and September 2011, the Media and entertainment sector has added 30,900 jobs and is expected to add another 32,800 jobs between October and December 2011.
The Indian Media and Entertainment industry continues to grow at a ? healthy pace with over 500 Television (TV) channels and producing more than 1,000 programs every year. Large number of production houses catering to film, television and the advertisement industry are an important source of employment generation in this sector. ? Convergence between entertainment, information and telecommunication is increasingly impacting Indias overall media and entertainment industries. The draft New Telecom Policy envisages 175 million broadband connections in India by 2017, and 600 million by 2020, at a minimum of 2mbps download speeds. ? According to an IAMAI-IMRB joint study, mobile internet usage has been witnessing a 15% growth q-o-q and the total number of users was estimated to be at 46 million in September 2011. The access of content through mobile internet is likely to accelerate further, now with the introduction of 3G services. ? PWC estimates the Indian Media & Entertainment industry to touch Rs 1,199 billion in 2015 growing at 13.2% CAGR and the television industry is expected to grow by 12.9% cumulatively over 2010-15. It is projected to command half of the entertainment pie by 2015 with a robust growth rate of 14.5%. ? popularity of the direct-to-home (DTH) services may lead to a Growing reorganization of content delivery mechanism. Increasing access to broadband internet and mobile telephony will also provide two alternate new platforms for content delivery. ? same period, the radio sector is projected to grow at 19.2% Over the and the Indian print media is expected to expand by 9.6%. Animation, gaming and VFX industry is expected to maintain its growth pace and grow at 21.4%. Benefitting from the mobile value added services (VAS) market, the music industry is expected to grow at 17.6% over the same period. ? A FICCI-KPMG study puts the size of the Indian Film industry in 2015 at US$ 2.6 billion. ? services have become immensely popular in India. The sector FM radio is poised for further expansion with Government approval for eauction of licences under the third-phase expansion of FM radio. FM Phase-III will extend FM radio services to about 227 new cities, in addition to the present 86 cities, with a total of 839 new FM radio channels in 294 cities. It will result in coverage of all cities with a population of one lakh and above with private FM radio channels. ? This growth in the sector has fuelled the increase in hiring for the core functions like Marketing and Business Development roles with maximum hiring happening through referrals and the social media.

composition of new hires

1% 21% 32%

< 1 Year

by experience

1 - 4 Years 5 - 10 years > 10 Years

46%

4% 8% 12%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management

by function

76%

7% 6% 28%

Campus HR Agency

by hiring sources
35%

Referrals Social Media Others

27%

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

1,413,000

1,443,900

1,476,700

17.0%
July - September 2011

17.2%
October - December 2011

Note: Employment numbers are given as round figures

Pharma
Between June and September 2011, the Pharma sector has added 12,600 jobs and is expected to add another 12,800 jobs between October and December 2011.
Indias ?Pharmaceutical exports increased by 26.05% in FY 2010-11 over the previous year, with the total value of exports reaching up to US$ 6.54 billion. This is a significant jump from a mere 2.21% increase in exports in FY 2009-10. ? Drugs and Pharmaceuticals have been the top most FDI recipient sectors between April 11 and July 11 period. Out of US$ 14.54 billion of FDI inflow over this period, the Pharma sector cornered almost US$ 3.0 billion. This is a major jump considering that the cumulative FDI inflow in this sector over the period April 00 to March 11 was at US$ 1.90 billion only. ? According to PwC, India is expected to join the league of top 10 global pharmaceuticals markets in terms of sales by 2020 with the total value reaching US$ 50 billion. McKinsey suggests that if aggressive growth strategies are implemented, it has the potential to reach US$ 70 billion by 2020 from US$ 13.1 billion in FY 2010-11. ? experts suggest that almost a third of total R&D investment Industry by the global Pharma industry, which is estimated at US$ 40-50 billion, could be made in India over the next 10 years. ? Research in India is growing at an annual rate of around Contract 20% to 25%. Clinical trials represent 65% of this market and new drug discovery makes up the remaining 35%. ? However, there has been concern in the industry in terms of increasing prices of the Pharma products, especially concerning products of Indian Pharma companies recently acquired by MNCs. As such, though greenfield FDI will continue be under automatic route, brownfield investments will be allowed through the Foreign Investment Promotion Board (FIPB) for six months, following which, such acquisitions will have to be routed through the Competition Commission of India. This may be a minor dampener to the otherwise rosy growth picture for the sector. ? The sector witnessed a spurt in hiring for experienced people for core functions and majority of the recruitments were made through referrals.

composition of new hires

4% 24%

39%

< 1 Year

by experience

1 - 4 Years 5 - 10 years > 10 Years

33%

5% 15% 11%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management

by function

69%

2%

21% 33%

Campus HR Agency

by hiring sources

Referrals Social Media Others

10%

34%

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

309,000

321,600

334,400

15.2%
July - September 2011

15.6%
October - December 2011

Note: Employment numbers are given as round figures

Real Estate and Construction

Between June and September 2011, the Real Estate and Construction sector has added 30,700 jobs and is expected to add another 26,200 jobs between October and December 2011.
According to a McKinsey Global Institute study, India's urban ? population will soar to 590 million by 2030 from 340 million in 2008, stimulating a near four-fold increase in per capita income. India will need to invest US $1.2 trillion over next 20 years to modernise urban infrastructure and keep pace with this growing urbanisation. ? 95% of Indias foreign trade by volume and 70% by value, is Around transported through sea. This emphasizes the contribution in sustaining growth and development of the Indian economy. Government of India has put in place a National Maritime Development Programme (NMDP) encompassing 276 projects at an estimated cost of US$ 12.52 billion. Under the Maritime Agenda 2020, the total capacity of all these ports is expected to reach 3,280 MMT, with an expected investment of US$ 26.81 billion in major ports and US$ 37.68 billion in non-major ports. ? Government has embarked on a massive National Highways Development Project (NHDP) in the country. Under the first two phases of the project 14,279 km of National Highways are proposed to be upgraded to 4 or 6 lane at a total estimated cost of US$ 14.56 billion. The Government of India (GoI) plans to develop 35,000 km of highways by 2014 under the NHDP. ? According to IATA, India's Domestic Aviation Market expansion has been the strongest in the world - tripling in the past five years, making it the ninth largest aviation market in the world. As per DGCA figures, passengers carried by domestic airlines during Jan-Aug 2011 were at 39.63 million, as against 33.41 million during the corresponding period of previous year, thus registering a growth of 18.6 per cent. ? expected to cross the 450 million mark of domestic passengers India is by 2020. This growth will not be limited just to the metros, but has already started to reach the Tier II and Tier III cities. This expansion will necessitate an enhanced expenditure on developing infrastructure. ? installed power generation capacity of India in 2011 is The total estimated to be around 1,76,990.40 MW. According to the experts, the total demand for electricity will be above 950,000 MW by 2030. This entails massive expansion in all modes of power generation. ? real estate and construction sector is predicted to see Thus, the heightened activities over a long period of time in future. However, in the shorter term, there may be many slips between potentials and reality as many of the infrastructure projects have been either delayed orstalled. ? The inflationary pressure followed by higher interest rate has increased the cost, both for inputs and capital mobilisation. In case of real estate, this has also led to sharp fall in demand. This is reflected in the mere 1.2% growth in the contribution of Construction sector in Indias GDP for Q1 of FY 2011-12 over corresponding quarter of previous year. ? Increased interest rates has brought down the demand in the housing sector, directly impacting the growth and job generation.

composition of new hires

1% 24%

36%

< 1 Year

by experience

1 - 4 Years 5 - 10 years > 10 Years

39%

4% 20% 20%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management

by function

56%

5% 10%

24%

Campus HR Agency

by hiring sources
17% 44%

Referrals Social Media Others

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

934,300

965,000

991,200

12.7%
July - September 2011

12.1%
October - December 2011

Note: Employment numbers are given as round figures

Trade including Consumer Retail Services

Between June and September 2011, the Trade including CRS sector has added 9,700 jobs and is expected to add another 9,900 jobs between October and December 2011.
The Business Monitor International (BMI) forecasts total retail sales in ? India to grow from US$ 411.28 billion in 2011 to US$ 804.06 billion by 2015. The report has underlined factors like economic growth, population expansion, increasing wealth of individuals and rapid construction of organised retail infrastructure as major drivers for the optimistic forecast figures. Food and groceries is considered to be the largest segment in organised retail, followed by apparel, footwear and consumer electronics. ? been ranked as the fourth most attractive nation for retail India has investment among 30 emerging markets, by the US-based global management consulting firm, A T Kearney, in its Global Retail Development Index (GRDI) 2011. ? and Markets estimates Indian retail sector to account for Research 22% of the country's GDP (GDP) and contributes to 8% of the total employment. ? According to Booz and Co (India), only 6% of Indian Retail business is with the organised retail players as of 2010. Hence, there is a great potential to be explored by the organized domestic players. Participation of international players will remain limited for some more time till the FDI restrictions on retail sector are lifted. ? According to a report by research firm CB Richard Ellis India, over 6 million square feet of retail mall space was added across India in the first six months of 2011; primarily due to aggressive expansion by organised retailers. Along with the metros, the retailers are betting big on Tier-II and Tier-III cities as well. The rural market in India is attracting focus from all the major retailers in apparel, food & groceries, electronics, consumer durables and supermarkets businesses. Online retail segment in India is growing at an annual rate of 35%, which would take its value from US$ 429.5 million in 2011 to US$ 1.5 billion in 2015. ? tremendous long term growth potential, the immediate Despite expansion plans of the sector is adversely affected by the spiraling inflation, lower disposable income and economic downturn. The IIP for Consumer Goods grew by 4.8% only in the April-August 2011 period, compared to y-o-y growth of 8.9% in the previous year. This fall was mainly due to the massive fall in the production of consumer durables. ? This downturn in prospects, as well as future uncertainty on inflation and economic growth is reflected in the lower employment growth in the last quarter as well as lower expectation for the Sept-Dec 2011 quarter.

composition of new hires

8% 1%

33%

< 1 Year

by experience

1 - 4 Years 5 - 10 years > 10 Years

58%

2% 14% 18%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service Senior Management

by function

66%

13% 25%

12%

Campus HR Agency

by hiring sources
10%

Referrals Social Media Others

40%

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

671,500

681,200

691,100

14.1%
July - September 2011

14.8%
October - December 2011

Note: Employment numbers are given as round figures

Transport, Storage and Communication

Between June and September 2011, the Transport, Storage and Communication sector has added 12,500 jobs and is expected to add another 11, 300 jobs between October and December 2011.
The IIP ? for both mining and manufacturing sectors has seen a sharp drop in the April-August 2011 period, where mining growth has dropped from 7.7% to 0.2% and the growth rate of manufacturing has also dropped to 6% from 9.2% recorded for the same period last year. This had an adverse effect on the demand for transport services. ? At present, about 80% of the country's freight is transported by roads and the rest by railways. ? in fuel prices, price of tyres, lubricants, and even chassis along The rise with higher wages for drivers have all contributed towards increased operations costs for road transporters, even in the face of lower demand. ? According to IRTFT, only 5% of fleet owners and transport firms are following the norms of Transport Workers Act. This has made the Drivers Job quite unattractive, thus resulting in huge shortage in manpower supply. According to All India Motor Transport Congress reports, at least 15% of the truck fleet in India (around eight lakh trucks) is grounded due to shortage of drivers. ?Railways has carried 389.07 million tonnes of revenue earning Indian freight traffic during April-August 2011. There is an increase of 22.36 million tonnes in the freight carries (total freight traffic - 366.71 million tonnes) as compared to the corresponding period last year, registering an increase of 6.10%. However, the y-o-y growth rate in the month of August decelerated significantly to 2.09%. ?Shipping s Gross Registered Tonnage in FY 2010-11 has Indian increased to 10.45 MT from 9.69 MT last year, growing at a rate of 7.84%. The growth rate was 4.31% in the previous year. Annual increase in the number of India registered vessels though has remained stagnant at around 60 per year for the last three financial years. ? Passenger traffic by air increased from 46.45 million in Apr-Jul 201011 to 83.13 million in the current financial year, growing 15.6% y-oy. Bulk of it was domestic traffic, which grew at 17.9%. International passenger traffic grew slower at 8.8% and the July 2011 growth figure was even lower at 7.1%. With increased ATF prices and uncertain global & domestic economic condition, the growth in this sector is expected to remain subdued for some time. ? Compared to passenger traffic, the performance of air freight traffic was rather dismal. Over the four month period of Apr-Jul 2011-12, it grew overall at 0.7% only relative to comparable period last year. This was mainly due to a negative growth in domestic air freight (-5.3%). The fall in domestic air freight was even sharper in July 2011 at 8.8%. ? factors have contributed towards lower employment All these generation in transportation sector compared to what had been expected at the beginning of June-Sept quarter.

composition of new hires

3% 20%

36%

< 1 Year

by experience

1 - 4 Years 5 - 10 years > 10 Years

41%

14%

10%

Admin / Accountants etc Core Activities including Marketing and BD Customer Service

by function

76%

10%

2% 13%

6%

Campus HR Agency

by hiring sources

Referrals Social Media Others

69%

Increase in Salary
Lateral Job Shift

Estimated Employment

June 2011

Estimated Employment

September 2011

Estimated Employment

December 2011

2,709,500

2,722,000

2,733,300

11.5%
July - September 2011

11.4%
October - December 2011

Note: Employment numbers are given as round figures

city-wise employment outlook

Ahmedabad
About 3,400 new jobs are expected to be created in Ahmedabad in the last six months of 2011. Estimated job creation in JuneSeptember 2011 quarter (Q3) was marginally higher than what was expected at the beginning of the quarter. However, the number of jobs to be created in the October-December 2011 months (Q4) is expected to be significantly lower. Major contributing sectors to employment generation in Q3 were Manufacturing - Machineries, IT/ITES and Energy.

Hyderabad
Hyderabad is the third city that experienced higher than expected employment generation in Q3. It generated 3,800 new job opportunities as against the expectation of 3,500 jobs. Another 3,200 jobs are expected to be added during Q4. The sectors that contributed to thesuccess in Q3 were BFSI, IT/ITES and Hospitality. The low expectation for Q4 is due to theprevailing uncertainties in the BFSI and IT/ITES sectors, the two major contributors in Q3.

Bangalore
New job creation in Bangalore in Q3 was higher than expected. It created 5,200 jobs against an expected increment of 5,000. The outlook for Q4, however, is not that rosy. The sectors that generated most of the jobs in Bangalore are Education, Training & Consulting, BFSI, IT/ITES and Media & Entertainment.

Kolkata
Kolkata presents a stable look in terms of new jobs created or expected to be created. Against an expectation of 5,600 new jobs in Q3, it actually generated a total of 5,500 jobs. The expectation for the next quarter is also in similar lines and the city is expected to add 5,700 new jobs. The major contributing sectors in Kolkata were Manufacturing of Machinery and the Non-machinery products sectors and Consumer & Retail.

Chennai
Though it ranked third in terms of number of jobs created in Q3, the actual increase in jobs over the last quarter was lower than anticipated - only 15,500 new jobs were generated as against the prediction of 16,900 jobs at the beginning of the quarter. The expectation for Q4 though remains buoyant at 16,600 new jobs. The top three sectors in terms of job creation in Q3 were IT/ITES, Pharma and Hospitality.

Mumbai
The financial capital of India is the place where most of the new employment opportunities are. It generated 28,500 new jobs in Q3 and expects to add another 27,300 in Q4. Though these figures make it the job capital, in reality the numbers are significantly lower than the expectation of 30,000 plus quarterly job creation expected at the beginning of Q3. The major sectors propelling it to the top place are BFSI, IT/ITES, Energy and Hospitality.

Delhi & NCR

Delhi & NCR saw the second highest employment creation in Q3. The actual number of additional employment created was in line with the expectation at 27,000 jobs as 27,900 predicted. However, the pace of job creation is expected to somewhat slow down in Q4 with an expected increase of 25,300 jobs. The sectors majorly contributing to Delhis job market in Q3 were Education, Manufacturing of Machineries,Energy, Real Estate & Construction, Education, Training & Consulting.

Pune
Q3 was sluggish for Pune job hunters. The actual additional job numbers were 15% lower than expected against expected 3,300 new jobs, only 2,800 jobs actually came by. The next quarter growth expectation maintains a stable outlook and 3,000 new jobs are expected to be added in Q4. The major job generators in Pune in Q3 were BFSI, Non-machinery Manufacturing, Energy and Transport, Education and Hospitality.

July - September 2011

October - December 2011

100000 90000 80000 70000

55800 27300 52300 25300

60000 50000 40000 30000 20000

32100 16600

11200 5700

9700 4500

7000 3200

5800 3000

3400 1600

10000 0

28500

27000

15500

5500

5200

3800

2800

1800

Mumbai

Delhi & NCR

Chennai

Kolkata

Bangalore

Hyderabad

Pune

Ahmedabad

summary and conclusion

The current Ma Foi Randstad Employment Survey (MEtS) covers employment generation and other related issues such as sectoral distribution of job growth, salary hikes for lateral job shifts, composition of new hires in terms of experience, functional area and hiring sources for the June-September quarter of 2011 (Q3), and captures the industry expectations on how the employment scenario will develop over the October-December quarter of 2011 (Q4). The current survey estimations suggest that a total 0.34 million new jobs were created in the Indian economy over Q3 in the 13 sectors covered. Overall, employment grew at 0.98% over June 2011 figures, and 40,000 lesser jobs were created than what was expected at the beginning of Q3. During the last survey at the beginning Q3, the employment situation was more subdued than what had been expected. GDP growth was lower than predicted and the toll of twin pressures of inflation and high oil price on certain sectors had started to become apparent. With no recovery in global economy in sight, and the pressures of inflation (which has resulted in a high interest rate regime) and oil prices still strong, the furrows have only grown thicker. The rate sensitive sectors like Real Estate and the Automobile have started to falter with vanishing demand. And the outlook for the BFSI sector continues to be gloomy. The cyclicality in demand for certain sectors like education and hospitality have also led to lower employment numbers. Despite all these near term problems, India is still expected to grow at 7.5% plus in FY 2011-12, which is an indicator of its resilience and gives confidence, that despite the short term downturn (resulting in lower job numbers), the long term growth story of India is still intact. It is to be noted that even the most adversely affected sectors in Q3, still enjoy a favourable long term excess demand situation, which protects their growth potential once the immediate term glitches are conquered. In the face of economic uncertainly percolating from both domestic and international macro events, even though a deceleration in job growth rates is now being experienced, in the longer term the economy still retains the wherewithal to jump back the numbers may be sluggish, but there is no need to press the panic button as yet.

Appendix
A1: Expected Increase in Employment across Different Sectors BFSI Education, Training and Consultancy Energy Healthcare Hospitality IT & ITES Manufacturing of machineries and equipments Non-machinery Manufacturing Media and entertainment Pharma Real Estate and Construction Trade including CRS Transport, Storage and Communication
Estimated Employment June 2011 Estimated Employment September 2011 Expected Employment December 2011

939,800 9,839,200 910,100 3,492,700 6,205,600 2,010,000 1,164,600 4,589,100 1,413,000 309,000 934,300 671,500 2,709,500

954,600 9,860,800 917,600 3,553,100 6,254,000 2,056,600 1,178,400 4,625,800 1,443,900 321,600 965,000 681,200 2,722,000

966,500 9,881,500 924,200 3,611,800 6,295,600 2,098,200 1,192,400 4,663,900 1,476,700 334,400 991,200 691,100 2,733,300

A2: Expected Increase in Salary across Different Sectors - Lateral Job Shift

Estimated Average Increase during July to September 2011

Expected Average Increase during October to December 2011

BFSI Education, Training and Consultancy Energy Healthcare Hospitality IT & ITES Manufacturing of machineries and equipments Non-machinery Manufacturing Media and entertainment Pharma Real Estate and Construction Trade including CRS Transport, Storage and Communication

12.2 % 11.5 % 16.0 % 17.0 % 15.0 % 15.6 % 12.9 % 14.2 % 16.9 % 15.2 % 12.7 % 14.1 % 11.5 %

9.1 % 11.0 % 15.0 % 16.4 % 13.3 % 15.6 % 12.8 % 14.2 % 17.2 % 15.6 % 12.1 % 14.8 % 11.4 %

During July to September 2011

A3: Composition of New Hires by Experience

Less than 1 year 1 to 4 years 5 to 10 years More than 10 years

Banking, Financial Services and Insurances Education, training and consultancy Energy Healthcare Hospitality Information Technology and Information Technology related Services Manufacturing - Machineries and Equipment Manufacturing - Non-machinery products Media & Entertainment Pharma Real Estate and Construction Trade including Consumer retail and logistics Transport, Storage and Communication

32.1 % 30.1 % 26.2 % 28.8 % 36.5 % 30.4 % 26.7 % 21.7 % 31.7 % 23.8 % 23.3 % 33.0 % 35.8 %

49.3 % 36.1 % 21.7 % 33.5 % 40.9 % 39.6 % 47.0 % 58.5 % 46.0 % 33.2 % 39.3 % 57.9 % 41.4 %

15.7 % 29.9 % 50.8 % 35.8 % 22.0 % 27.9 % 22.8 % 17.5 % 21.2 % 39.2 % 36.2 % 7.9 % 19.5 %

2.8 % 4.0 % 1.3 % 1.9 % 0.6 % 2.0 % 3.6 % 2.3 % 1.1 % 3.8 % 1.2 % 1.3 % 3.3 %

During July to September 2011

A4: Composition of New Hires by Functional Areas

Support functions such as Admin./Accounts etc.

Core activities including Marketing and Business Development

Customer Services related

Higher Management

Banking, Financial Services and Insurances Education, training and consultancy Energy Hospitality Information Technology and Information Technology related Services Manufacturing - Machineries and Equipment Manufacturing - Non-machinery products Media & Entertainment Pharma Real Estate and Construction Trade including Consumer retail and logistics Transport, Storage and Communication

10.9 % 23.4 % 20.5 % 28.1 % 13.6 % 21.7 % 18.1 % 12.4 % 15.2 % 20.2 % 18.2 % 9.8 %

67.9 % 62.4 % 49.7 % 61.7 % 66.2 % 66.1 % 67.9 % 76.2 % 68.5 % 56.2 % 65.5 % 76.3 %

19.5 % 11.8 % 18.1 % 6.9 % 19.8 % 11.1 % 12.0 % 7.6 % 11.2 % 20.2 % 14.1 % 13.7 %

1.8 % 2.5 % 3.8 % 3.4 % 0.5 % 1.1 % 2.1 % 3.8 % 5.1 % 3.5 % 2.3 % 0.2 %

Proportion of New Hires

A5: Share of Different Hiring Sources for New Hires

Campus HR Agency Referrals Social Media Others

Banking, Financial Services and Insurances Education, training and consultancy Energy Healthcare Hospitality Information Technology and Information Technology related Services Manufacturing - Machineries and Equipment Manufacturing - Non-machinery products Media & Entertainment Pharma Real Estate and Construction Trade including Consumer retail and logistics Transport, Storage and Communication

4.7 % 8.6 % 6.0 % 7.3 % 13.3 % 9.6 % 7.0 % 11.6 % 5.5 % 2.1 % 5.0 % 13.2 % 2.0 %

15.9 % 16.7 % 36.0 % 5.0 % 10.8 % 17.7 % 28.7 % 29.2 % 5.5 % 20.8 % 9.7 % 11.4 % 13.0 %

48.8 % 43.8 % 32.0 % 57.5 % 39.2 % 44.4 % 30.6 % 24.8 % 34.58 % 33.8 % 44.4 % 40.4 % 69.5 %

17.3 % 15.6 % 14.0 % 11.7 % 3.3 % 11.7 % 7.6 % 9.2 % 26.5 % 10.0 % 17.3 % 10.0 % 5.5 %

13.3 % 15.4 % 12.0 % 18.6 % 33.3 % 16.7 % 26.1 % 25.2 % 27.9 % 33.3 % 23.6 % 25.0 % 10.0 %

A6: City-wise Expected Increase in Employment and Growth Rate

Increase in Employment
Estimated July - September 2011 Expected October - December 2011

Growth in Employment
Estimated July - September 2011 Expected October - December 2011

Ahmedabad Bangalore Chennai Delhi & NCR Hyderabad Kolkata Mumbai Pune

1,800 5,200 15,500 27,000 3,800 5,500 28,500 2,800

1,600 4,500 16,600 25,300 3,200 5,700 27,300 3,000

3.6 % 3.9 % 3.8 % 4.2 % 4.0 % 3.0 % 4.0 % 3.9 %

3.3 % 3.5 % 4.1 % 3.9 % 3.3 % 3.1 % 3.9 % 4.1 %

A7: City-wise Likely Increase in Salary - Lateral Job Shift Ahmedabad Bangalore Chennai Delhi & NCR Hyderabad Kolkata Mumbai Pune 13.0% 14.3 % 14.9 % 15.0 % 14.5 % 12.0 % 14.6 % 15.0 %

Average Salary Hike

July to September 2011 October to December 2011

12.8 % 12.9 % 12.7 % 14.4 % 13.5 % 12.2 % 14.1 % 14.8 %

A8 : City-wise Share of Different Experience Brackets amongst New Hires

Less than 1 year

July to September 2011

1 to 4 years 5 to 10 years Greater than 10 years

Ahmedabad Bangalore Chennai Delhi & NCR Hyderabad Kolkata Mumbai Pune

24.5 % 17.4 % 32.4 % 35.9 % 28.2 % 25.3 % 27.9 % 27.3 %

31.1 % 44.1 % 42.4 % 37.2 % 47.8 % 55.5 % 35.7 % 38.1 %

40.8 % 37.4 % 24.0 % 24.0 % 21.5 % 16.0 % 35.3 % 33.2 %

3.6 % 1.1 % 1.2 % 3.0 % 2.5 % 3.2 % 1.0 % 1.5 %

July to September 2011

A9: City-wise Share of Different Functional Areas amongst New Hires

Support functions such as Admin./Accounts etc.

Core activities including Marketing and Business Development

Customer Services related

Higher Management

Ahmedabad Bangalore Chennai Delhi & NCR Hyderabad Kolkata Mumbai Pune

21.3 % 14.2 % 15.9 % 15.3 % 8.5 % 18.1 % 21.2 % 11.8 %

53.2 % 34.3 % 65.2 % 51.8 % 45.1 % 66.4 % 59.1 % 67.2 %

24.2 % 49.2 % 17.8 % 30.9 % 44.2 % 13.2 % 18.1 % 18.9 %

1.3 % 2.3 % 1.1 % 2.0 % 2.2 % 2.2 % 1.6 % 2.1 %

HR Statistical Research
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? Benchmarking HR practices involves recruitment strategies,

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Randstad specializes in solutions in the field of flexible work and human resources services. Our services range from regular temporary staffing and permanent placement to inhouse, professionals, search & selection, and HR Solutions. Since acquiring Vedior in 2008, the Randstad Group is one of the leading HR services providers in the world with top three positions in Argentina, Belgium & Luxembourg, Canada, Chile, France, Germany, Greece, India, Mexico, the Netherlands, Poland, Portugal, Spain, Switzerland and the UK, as well as major positions in Australia and the United States. End 2010 Randstad had approximately 27,500 employees working from close to 4,200 branches and inhouse locations in 43 countries around the world. Randstad generated a revenue of 14.2 billion in 2010. Randstad was founded in 1960 and is headquartered in Diemen, the Netherlands. Randstad Holding nv is listed on the NYSE Euronext Amsterdam, where options for stocks in Randstad are also traded. For more information see www.randstad.com

about Indicus Analytics

Indicus Analytics is an economics research and data analysis firm based in New Delhi. Indicus examines many aspects of the Indian economy both at the national and subnational level It conducts monitoring and evaluation studies, indexation and ratings, as well as policy research. The endeavour of this research is to use it to broaden the public policy debate to promote liberalism and the mechanisms of the market for the stimulation of growth in India. The extension of the competitive market mechanism of resource allocation to the economy as a whole requires rigorous and robust understanding of institutions that will facilitate the extension. Indicus research thus focuses on the institutional capabilities as well as the regulatory processes of these institutions. Our research services have been used by academia, government, research organizations, civil society, media, international institutions and industry. Academic institutions such as Harvard, Cambridge, Stanford Universities; national and international government organizations such as RBI, Finance Commission, DFID, USAID, various ministries; international organizations such as World Bank, UNICEF, UNDP; media groups such as India Today, Outlook, Indian Express; industry such as IKEA, Microsoft, VISA; consulting firms such as McKinsey, BCG, E&Y; NGOs and civil society organizations such as National Foundation of India, Liberty Institute have been some of our key sponsors. Indicus started in December 2000 and has since become India's premier economics research firm. National and international corporate bodies, industry associations, governments, academia and media houses have used our research to better understand the Indian economy and markets. Key decision-makers such as the President of India Dr. A.P.J Abdul Kalam, the Prime Minister Dr. Manmohan Singh and the Finance Minister Mr. P. Chidambaram have referred to Indicus' work. Constant interaction with national and international experts and our ongoing non-funded research activities are the key factors that enable us to maintain a high quality of output. Our persistent endeavor to keep abreast of new developments in research methodology gives us the ability to bring out fresh insights from otherwise intractable information. Most important factor behind our success has been our ability to triangulate between (i) the objectives and motivations of the sponsor, (ii) information availability and robust methodologies, and (iii) structure of the Indian economy. Apart from quantitative economic research of secondary data, Indicus conducts large scale surveys, qualitative analysis, indexation, forecasting, evaluation and monitoring, publishes white papers and policy briefs.

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