Nearly 0.25 million net jobs were created during 2019 – a three-year high. However, a bulk of these jobs – as high as 0.9 million (40 percent) are temporary (temp) workers
The information technology (IT) and financial services sectors emerged as the top job providers, jointly accounting for over 50 percent of all hiring in India, says a new study by investment group CLSA, titled ‘Boardroom nectar — distilling the essence of India’s annual reports’.
The study, which analysed 250 listed companies, showed that both sectors also topped at hiring women.
From the 45 lakh jobs created by companies, finance alone employed 28 percent (13 lakh people) and IT 26 percent. Within financials, the public sector employed 60 percent of all new joinees.
The private sector generated majority of the jobs – growing 9.2 percent, while share of the public sector declined 2.6 percent (the sharpest in recent years) in FY19.
Tata Consultancy Services has the largest workforce of all listed companies in India with almost 420,000 employees. It is also among the biggest employers of women at 152,114 female employees, or 36 percent of the workforce. Infosys has the highest proportion of women in its workforce at 37 percent.
Across sectors, the proportion of women employees in FY19 was 23 percent in FY19. Tech, by far, has the highest share of women employees followed by public and private banks; while autos, infrastructure, metals and petrochemicals had a much lower proportion of women workers.
The study also found that job growth for FY19 was 4.1 percent, up from FY18’s 1.4 percent growth (238 companies analysed). This means nearly 0.25 million net jobs were created during the year – a three-year high.
However, a bulk of these jobs – as high as 0.9 million (40 percent) are temporary (temp) workers.
Companies with high number of such temporary workforce includes the EPC major Larsen & Toubro (L&T), large PSU refiners Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL) and select consumer and auto companies as well.
IT and banks, the two largest employers, had a relatively lower temporary employer base. Among Nifty companies, the temporary workforce grew 3.9 percent year-on-year (YoY).
Job growth in the IT space was strong at nine percent in FY19 compared with flat growth in FY18. It found that IT companies had added 0.1 million jobs.
Outsourced job service providers grew their workforce by an impressive 18 percent YoY in FY19. The sector remains in a hyper-growth phase, as more and more companies, particularly the ones in e-commerce, are looking for flexi-job providers.
NBFC job creation looks high at 13 percent YoY and is counter-intuitive. This is essentially a data quirk given that the troubled NBFCs have yet to release their annual reports at the time of printing of this report. Though some genuine increase has indeed happened at large employers, such as Bajaj Finance and HDFC.