Ma Foi Employment Survey (MEtS)

 

1 million new jobs in India in 2008

Ma Foi’s Employment Survey – MEtS predicts a 3% increase in employment this year.

Ma Foi Management Consultants Limited, India’s largest HR Staffing and Solutions provider has announced the findings of the Ma Foi Employment Trends Survey (MEtS), on March 6, 2008. The Ma Foi Employment Survey (MEtS) is one of the largest and comprehensive studies undertaken to predict the employment trends and opportunities in the organized sector in the country. The first MEtS Survey was commissioned in November 2004.

Conducted by Ma Foi, which is a part of the Vedior group and the largest HR service provider in India with 104 offices across the globe, the first MEtS Survey was commissioned in November 2004.

The 2008 MEtS Report captures the employment scenario of 22 different sectors as of December 2007 and predicts the future employment trends for 2008 in the organized component of these sectors. This survey was conducted across 2006 units spanning all major industry segments from all over the country.

Key Highlights of the report:

 

•      % of Growth in Recruitment:

Health Sector shows the highest growth in recruitment at 8.9% followed by IT at 7.3%, ITES at 7.2% and Hospitality at 6.9%. According to FICCI the healthcare industry has emerged as one of the most challenging sectors in India with estimated revenue of about $ 30 billion (FY 2005) constituting 5% of the GDP. The Indian Health Services sector is estimated to be around Rs. 750 billion and is estimated to grow by 170% by 2012. Going ahead, the demand for healthcare and therefore employment in this sector is expected to rise in line with the trend.

•      Employment increase in 2008:

The Hospitality sector is shown to generate the maximum number of employment in 2008. 426,668 jobs are going to be generated by the Hospitality sector. This sector is closely followed by Health at 295,829 and Education Training & Consultancy at 166,005.

The lowest employment generating sectors for 2008 are Manufacturing of Food and Beverages, Minerals and Metal Products and manufacturing of Furniture.

An estimated US$ 11.41 billion is expected to be seen in the Hospitality sector in the next two years. India is likely to have around 40 international hotel brands by 2011. Along with these large scale expansion plans, international hotel asset management companies are also likely to enter India. The boom in the tourism industry has had a cascading effect on the hospitality sector, which was a result of the increase in the occupancy ratios and average room rates. While occupancy ratio is around 75-80%, the average increase in room rates hovered around 22-25% (July-September 2007). With the demand continuing to surge, many global hospitality majors have evinced a keen interest in the Indian hospitality sector.

•      Number of jobs in 2008:

The sectors generating the highest number of jobs in 2008 are Education at 10,429,312, Hospitality at 6,595,879 followed by Health at 3,616,525. Faced with high growth potential, firms in the production and service sectors have found themselves constrained by the quality of the workforce. Raising employability levels has therefore been an objective not just for the workforce looking for jobs, but also for the companies who have initiated partnerships with private and public institutes to build up relevant skills and training. It is for this reason that the Education sector has seen high employment growth and though there may be a slowdown as economic growth moderates this year, employment growth will remain highly positive this year.

Mining Sector records the lowest number of jobs in 2008. With the PSUs being major players in the sector, the employment is seen to be on the downturn because of the same reasons impacting the employment in PSUs of other sectors. The VRS schemes and lack of new employment opportunities is further adding to the low employment figures.

Other key highlights :

• At 19%, the Real Estate and Construction Industry records the highest percentage of work outsourced followed closely by Hospitality at 18.5%

• Experienced workers are hired more than freshers, who constitute a little more than a quarter of the newly hired. Sectors where the demand for freshers is above 30% include Hospitality, Energy Generation & Supply Sector, ITES and Mining & Extraction. Real Estate & Construction stands out as the sector in which more than 75%of the recruitments are of experienced professionals.

• It is observed that the Energy Generation & Supply sector will experience the highest average salary increase (16.8%). Other booming sectors in terms of average salary increase are IT, Real Estate & Construction, Trade and Hospitality sector among others.

Current indications show that the impact on expected employment over the next one year is mixed. Some sectors such as mining, minerals, food products, furniture, textiles are expected to turn in negative growth in employment while there are many such as health, hospitality, IT and ITES, real estate and construction that are expected to generate jobs. India’s growth trajectory has changed considerably and both stakeholders- the corporate world and the government are aware of the responsibility on them to uphold the new standards of growth and employment.

Download the MEtS 2008 Report