Mets September 2010 Ver4

8/2/2019 Mets September 2010 Ver4

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2010

Ma Foi Randstad

Employment Trends Survey

Wave 3


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Section A : Indian Economy Optimism is spread all over

Section B : Data and MethodologySection C : Expected Employment Generation

?Banking, Financial Services and Insurance (BFSI)?Information Technology & Information Technology Enabled Services (IT & ITES)?Pharma?Healthcare?Trade including Consumer, Retail and Services?Energy?Transport, Storage and Communication?Real Estate and Construction?

Hospitality?Media and Entertainment?Manufacturing of Non-Machinery Products?Manufacturing of Machineries and Equipmants?Education, Training and Consulting

City-wise Employment Outlook

Section D : Summary and Conclusion

Appendix

?Increase in Salary across Sectors?Increase in Salary across Sectors and Size of the Companies?City wise total Employment?City wise increase in Employment?Expected Increase in Salary across Cities?Proportion of Fresher/Experienced across Sectors?Proportion of Fresher/Experienced across Cities?Proportion of Fresher/Experienced across Sectors and Ownership?Percentage of Work Outsourced Across Sectors

The Ma Foi Randstad Employment Survey (MEtS) is a study on the Indian employment trends and opportunities conducted by Ma FoiManagement Consultants Ltd. Started in November 2004. Till 2008, MEtS usually conducted once in a year. Considering the fact that severalemployment dynamics shifts substantially even within a years time, the employment survey has been decided to be conducted quarterly from2010. The changes within a shorter span of time can be captured through quarterly reports. The first report was released in June 2010. This isthe second report for the current year.

The prime objective of this employment survey is to understand the employment trends in the organized sector on a quarterly basis. The presentsurvey has captured the employment situation in the organized sector for the quarter April to June 2010 and the likely scenario for the nextquarter, i.e., July to September 2010. The study is based on the sample survey conducted for about 650 companies across different sectors ofthe economy. The feedback was gathered from the top HR personnel or top management of the companies who could share the current andthe likely scenario regarding employment related issues. The major parameter captured in the survey is change in hiring pattern or employeenumbers.

The report is divided in four sections. The first section (Section A) provides the background as well as an overall view of the Indian Economy. Thisis followed by Section B, which discusses about the data and methodological aspects of the study. Section C presents a picture of the changingpattern of the employment for different sectors of the economy. This section also provides a snapshot of how the scenario is changing inselected cities. The final section (Section D) concludes the study highlighting key issues.


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India economyoptimism is spread all over


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A review of prices shows that a softening trend is noticedin the prices of food items led by cereals, fruits, sugar andmanufactured food products. The government food stock

has been estimated to be about 58 million tonnes at theend of June. The high farm product prices is a paradox tothe high level of food grain stock with the government.

An expectation of sustaining a high growth in theindustrial output has also been strengthened. The IIPgrowth was about 10% during the first quarter of thisfiscal year. The manufacturing sector has recovered fromthe crisis of 2008-09. Consumer durables and capitalgoods have shown higher growth rates due to higher fiscalstimulus as well as renewed investment and consumer

confidence.Amongst the services, telecom remained the outperformercompared to the peers. Hospitality and transport sectorhas also experienced significantly higher growth comparedto previous quarters. In general, the service sector growthis now driven by the productive sectors rather than thegovernment push given by government spending duringthe period of serious demand crisis in the economy.

The prospects of the macro-economic front for the rest ofthe year are bright except a few hitches. Besides the base

effect, the course of the economy will also be influencedby the changes that are new. The revenues to the extentof Rs. 100 thousand crore generated from 3G/BWAtelecom auction provides substantial relief to theborrowing needs of the government. In recognition of thehigh level of deficits run up by the government in last 2years, the budget speech this year already indicated newmeasures to rein in subsidies.

In case of fertilizers the new measure involved move to thenutrient based subsidies. In the case of petroleum, thenew measures have led to decontrol of petrol and

substantial increase in the prices of the other administeredprice fuels such as diesel, kerosene and LPG in June end.Though this may create space for new welfareprogrammes, but will increase annual rate of inflation. Theinflation rate measured by Wholesale Price Index (WPI)remained close to 10% for the first 2 quarters. Theinternational commodity prices have also beenstrengthened over the previous months.

Excellent beginning of the year has set high expectationsfor overall economic scenario of the current fiscal year.Government sources have suggested GDP (Gross Domestic

Product) growth to reach 9 per cent by 2010-11. Theeconomic advisory council to Prime Minister has projecteda GDP growth rate of 8.5%. This is backed by increasingmomentum of global recovery.

A part of the gains achieved from the higher economicgrowth has been offset by more pronounced high rate ofinflation. The first quarter of the current fiscal year hadbeen marked with an inflation rate (WPI based) of morethan 10 per cent. Another important aspect of higheconomic growth in the current year is the expected

contribution from the farm sector. Agriculture outputgrowth may increase significantly due to better monsoonexperienced this year. Higher agricultural productionshould also help to arrest the increase in prices of primaryarticles.

The prevailing high inflation rate clearly suggests the needfor easing the supply constraint, whether related toinfrastructure facilities or institutional constraints. Alongwith this, violence by Maoists and other terrorist threats insome of the resource-rich areas suggests that the growthprocess will not be evenly spread across regions. These

uncertainties and the resultant higher transaction costs willaffect the inclusive growth objectives.

The move towards GST and streamlining of direct taxprocess are two specific areas of reforms, which are likelyto yield benefits over a long term when implemented.Price decontrol of at least one of the petroleum fuelssuggests that fiscal pressure still exists though eased up aswitnessed in relatively small increase in governmentexpenditure growth in the current years central budget.

Information till end of August reveals that the country has

experienced significant improvement in rainfall situationduring last 2 months compared to the deficiencyexperienced in the month of June. It has been predictedthat September will also receive adequate rainfallthroughout the country. A recent estimate of cropproductions show that output of almost all crops exceptwheat, fibres and pulses, declined during 2009-10compared to the previous year.


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?Exports are projected to rise by 17 percent over theprevious year on account of recovery of globaldemand.

?Fiscal deficit of the centre, which was projected at 4.6

per cent of GDP is well below the budget estimates forthe year. Increase in non-tax revenues is an importantfactor for a lower deficit level.

?The outlook for the agriculture sector appears to bepositive due to combination of key factors likeadequate and well distributed rainfall across regions,significant increase in area under food grains as well asnon-food grains like oil-seeds, cotton, sugar cane etc.and adequate stock of chemical/bio-pesticides.

?Growth experience in majority of the manufacturingsectors (at 2 digit level) has been positive for the initialmonths of the fiscal year.

?Most of the core infrastructure industries haveexperienced high growth during the first quarter of thefinancial year.

?Auto sales continued to zoom up indicating a strongsentiment of the consumer market

?TRAI data as on May 2010 suggests that telephonesubscriber base of the country continues its

momentum of growth?Recently ended auction of 3G spectrum had huge

implication for government revenue earning as well aspaved the way for a new era in communicationservices which will enable consumers much fasterspeed than ever before as well as less transaction costfor consumers and businesses

?Commodities that are crucial inputs in manufacturinghave been rising globally has once again fuelled pricehikes.

?The Reserve Bank of India put in a hike of 25 basispoints on repo rate to arrest inflationary trend in theeconomy

?Fiscal deficit of the centre, which was projected at 4.6per cent of GDP is well below the budget estimates forthe year. Increase in non-tax revenues is an importantfactor for a lower deficit level.

?India will continue to remain one of the top attractivedestinations for international investors during the

coming months as suggested by the recently releasedUNCTAD report (World Investment Prospects Survey2009-11)

Monsoon can play a key role in curbing inflation rate.A surge in output of crops backed by adequate rainfallmay result in lower inflation rate. However, the impact

of a good rabi output was not visible on the inflationrate of primary articles or overall inflation rate. Theprime reason of this weak impact was procurement ofthe grains by government from fresh supplies. Theprices of the farm products might have been softenedif the grains were sold in the open market.

Significant policy reforms were noticed in monetarypolicies addressing the need for liquidity available inthe economy, for the safety of the financial market aswell as for stable banking services. With rising

inflation, the policy started to tighten the interest ratesand raised the CRR. The repo rate was increased by 25basis points in July beginning. Higher policy rates,when translated into higher market interest rateswould increase the cost of borrowings. This would inturn affect both investment plan as well asconsumption expenditure. However, in context of thestrong economic scenario, the impact of this on overallgrowth would be minimal.

The overall investment climate has turned

positive in the first quarter of the currentfiscal year. Recovery of global economy,which is also expected to continue, wouldbe an important driver for the internationaltrade opportunities as well as for theoffshore IT and IT related services. Theworld output is now projected to grow at afaster pace than that anticipated in April2010. The stable increase in stock price

indices also have been experienced duringthe first quarter of the fiscal year. Theforeign exchange reserves and theexchange rate have also shown signs ofstability.


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The study has used both primary and secondary data toarrive at different estimates. Secondary data from varioussources have been used for this study. Historical data on

the manufacturing sector has been culled from variousrounds of the Annual Survey of Industries (ASI) andpublications of the Central Statistical Organization (CSO).Apart from these sources, the other sources used for thestudy are various surveys of the National Sample SurveyOrganization (NSSO) Labour Statistics of India, Statisticaloutline of India.

The above sources have the advantage of almost universalcoverage of the organized sector within their specificdomains. However, data from most of these secondary

sources are not up-to-date. Therefore the estimationprocedure takes care of this problem through using up-to-date figures on sectoral GDP (Gross Domestic Product) andIndex of Industrial Production (IIP).Once estimates of base sectoral employment wereobtained, the data captured through primary survey ofabout 650 firms across sectors were used to arrive atestimated on different parameters. The primary data hasbeen used mostly estimate parameters for the second andthird quarters of the year 2010.

Sl. No. Sector

1. Banking Finance Services and Insurance (BFSI)

2. IT & ITES

3. Pharma

4. Healthcare

5. Trade including Consumer Retail Services

6. Energy

7. Transport, storage and communication

8. Real Estate and Construct ion

9. Hospitality

10. Media and Entertainment

11. Manufacturing of Non-Machinery Products

12. Manufacturing of Machineries and Equipments

13. Education, training and consultancy

No. of companies covered

55

63

31

32

51

28

84

48

42

34

73

57

51

data andmethodology

Coverage of Primary Survey


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optimism across

all sectors

Across all the sectors, positive sentiment has been noticed. Theforward movement that started since the end of 2009, hasbeen strengthened further during the April to June quarter and

was expected to continue during the next quarter, i.e., July toSeptember also. As a consequence, employment generationhas been noticed in every sector. However, certain issues likeuncontrolled inflation, increase in the price of raw materials,political uncertainty in a few resource rich pockets of thecountry still pose hindrance for a full fledged upward swing.The movement of skilled workforce within sectors has beenseen at a higher level compared to the last quarter. The changein employment across sectors is given in the following table.

BFSI 856,400

IT & ITES 1,800,200

Pharma 248,900

Healthcare 3,175,752

Trade including CRS 633,400

Energy 878,200

Transport, Storage and Communication 2,645,100

Real Estate and Construction 739,012

Hospitality 5,972,500

Media and entertainment 1,282,300

Non-machinery Manufacturing 4,433,300

Mfg. of machineries and equipments 1,109,100

Education, Training and Consultancy 9,731,200

12300 20,200 32,500

28100 33,100 61,200

7000 7,700 14,700

68800 72,000 140,800

4300 6,600 10,900

5200 7,000 12,200

7900 8,300 16,200

36000 48,200 84,200

41400 52,000 93,400

18600 21,000 39,600

13200 15,100 28,300

4200 6,800 11,000

18000 22,400 40,400

1.44 2.35 3.79

1.56 1.83 3.39

2.81 3.09 5.90

2.16 2.26 4.43

0.68 1.04 1.72

0.59 0.80 1.39

0.30 0.31 0.61

4.87 6.52 11.39

0.69 0.87 1.56

1.45 1.64 3.09

0.30 0.34 0.64

0.38 0.61 0.99

0.18 0.23 0.42

Comparison between earlier expected and current estimates of employment growth

Employment Total increase in employees Per cent increase

April - June2010

March2010

Jul - Sep2010

Apr - Sept2010

April - June2010

Jul - Sep2010

Apr - Sept2010

Sectors


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Ma Foi Randstad Employment Trends Survey

banking, financial

services and insurance

Employment in March 2010Estimated Employment in June 2010 868,700Expected Employment in Sep 2010 888,900

856,400


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45000

40000

35000

30000

25000

20000

15000

10000

5000

0

1.44%

0.52%

April - June 2010Jan - March 2010 July - September 2010

2.35%

123004400 20200

It is expected that during April - September 2010the BFSI sector will register an increase inemployment to the tune of 32,500.

?The positive developments in economic front and the stimulus providedin the union budget had raised the sentiment of the sector significantlyand it has continued for the 2nd quarter also.?However, the recruitment was estimated higher during the second

quarter of the year.?Large scale recruitments by leading players in the banking sector as well

as from the insurance companies have surged ahead the employment.?Growth in Indian banking sector will remain high, bolstered by sound

economic growth prospects. This is despite the challenges of highdomestic inflation, intense competition, and evolving risk managementprocesses.?A robust economy, along with a stable retail deposit base and a prudent

regulatory environment, has underpinned the resilience of India'sbanking sector to the global financial slowdown and credit growth isexpected to touch 20% in the next fiscal year.

Estimated increase in employment

Sep 2010

1160 1133 1129 1023 985 943 906 912 852 889

2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: MEtS 2008 and current estimates. Estimates are arrived at using NSSO, ASI, CSO and other databases

in 000Estimates of Sector-wise Employment

growth in Indian banking sectorwill remain high, bolstered bysound economic growthprospects


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information technology

and IT enabled services

Employment in March 2010 1,800,200Estimated Employment in June 2010 1,828,300Expected Employment in Sep 2010 1,861,400


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45000

40000

35000

30000

25000

20000

15000

10000

5000

0

1.56%

1.83%

28100 33100

It is expected thatthe IT & ITES sector will register an increase inemployment to the tune of 61,200.

during April - September 2010

?The challenge for the industry is to enhance the investment to grow thebusiness, given the uncertainty in the environment.?The debt crisis in Europe, the second-biggest market for Indian software

firms, and the currency fluctuations are key worries for the country's $60billion outsourcing sector. However, it has not impacted Indian IT firmstoo much, as lots of companies are looking to outsource jobs.?Research firm Forrester said in a report that Europe's volatile economic

situation and uncertainty about corporate IT budgets would result inpossible delays or cancellations of some outsourcing projects.?Indian software companies are benefitting from pickup in services-

spending in the US, the largest market for the sector, after the globaleconomic downturn.?Nasscom, which projected a growth rate of 4 to 7 per cent for the

current financial year, is hopeful that the industry may witness a double-digit growth rate for 2010-11. It expects revenue in the sector, led by topoutsourcers Tata Consultancy Services, Infosys and Wipro, to hit $49.7billion this fiscal.


2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep 2010

- 522 670 821 1045 1343 1798 1888 1793 1861



Indian software companies arebenefitting from pickup inservices-spending in the US

April - June 2010 July - September 2010

0.40%

Jan - March 2010

7200


12/44


pharmaceuticalsEmployment in March 2010 248,900Estimated Employment in June 2010 255,900Expected Employment in Sep 2010 263,600


13/44

45000

40000

35000

30000

25000

20000

15000

10000

5000

0

2.81%3.09%

70007700

It is expected thatthe Pharma sector will register an increase inemployment to the tune of 14,700.


?According to a report by Price Water House Coopers (PwC) in April 2010,India will join the league of top 10 global pharmaceuticals markets interms of sales by 2020 with the total value reaching US$ 50 billion.?Mid-cap Indian drug makers are likely to post healthy quarterly earnings

on rising sales across geographies but a strong rupee against the dollarthrough two-third of April-June period might shave off margins forsome.?Cadila Healthcare, Glenmark Pharmaceuticals, Lupin and Piramal

Healthcare, which rely heavily on domestic formulations and contractresearch and manufacturing services (CRAMS), are seen posting strongprofits on rising sales and new drug launches.?Profits for some of the companies, especially export-focused players,

would be under pressure due to the rupee appreciation, but otherwise,mid-cap firms are likely to post stable or strong growth.


India will join the league of top10 global pharmaceuticalsmarkets in terms of sales by2020


2.43%

Jan - March 2010

5900


14/44


healthcareEmployment in March 2010 3,175,752Estimated Employment in June 2010 3,244,552Expected Employment in Sep 2010 3,316,552


15/44

180000

160000

140000

120000

100000

80000

60000

40000

20000

0

2.16%

2.26%

68800 72000

It is expected thatthe Healthcare sector will register an increase inemployment to the tune of 140,800.


?The healthcare industry in the country, which comprises hospital andallied sectors, is projected to grow 23 per cent per annum to touch US$77 billion by 2012 from the current estimated size of US$ 35 billion. Thisis reflected in a huge contribution to the employment base of the

country.?Leading healthcare players are leveraging their size, experience and

capabilities to achieve higher profitability and financial viability. Eventhough the Indian healthcare sector is still in i ts infancy, privatehealthcare players in India are faring better than their overseascounterparts with respect to various key financial parameters. This factoris playing a major role in fast expansion and as a consequence,employment generation in the country.?The vast population of the country and increasing lifestyle as well as

environment related diseases are shooting demand for the healthcareservices. The huge demand-supply gap in healthcare facilities will allowthis sector to grow at a fast pace and to contribute significantly largeemployment to the economy in a long term basis.?India's top hospital such as Fortis and Apollo in India are planning to

increase their capacity in terms of beds in next few quarters as well asopening new branches in several cities. Several smaller players are alsotaking the advantage of the demand in both urban and rural areas whichis also boosting employment generation in the healthcare sector.?Various government schemes have paved the way for growth of

healthcare facilities across the country and is generating employmentsignificantly. A report by the Ministry of Health stated that during the lastfive years, rural health sector has added around 15,000 health sub-centres and 28,000 nurses and midwives. The report further states thatthe number of primary health centres have increased by 84 per cent,taking the number to 20,107.


2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep 2010

2543 2639 2739 2843 2951 3063 3309 3511 3123 3316



the vast population of thecountry and increasing lifestyle aswell as environment relateddiseases are shooting demand forthe healthcare services


1.69%

Jan - March 2010

52752


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trade includingconsumer, retail

and services

Employment in March 2010 633,400Estimated Employment in June 2010 637,700Expected Employment in Sep 2010 644,300


17/44

45000

40000

35000

30000

25000

20000

15000

10000

5000

0

0.68%

1.04%

4300 6600

It is expected thatthe Trade sector will register an increase inemployment to the tune of 10,900.


?This is one of the sectors which was hit severely during the recession andsuffered huge setback in both domestic as well as international market.Employment has also been affected adversely and significantly duringthat period.?However, gradually the market is picking up in both domestic and

international front. Global recovery has been boosting the confidence ofthe export market.?On domestic front, it has improved significantly compared to the

previous quarters and expected to do even better in the coming ones. Ifthe economy remains stable for next quarter or couple of quarters, thegrowth rate in employment in this sector will be much higher than thecurrent level.?The huge potential of this sector in Indian economy is reflected in a few

facts like the organized retail market in India is expected to reach US$ 50billion by 2011; number of shopping malls is expected to increase at aCAGR of more than 18.9 per cent from 2007 to 2015?Rural market will also be a major driving force for the retail industry

landscape in India by 2012 which is expected to reach a market share ofabove 50 per cent.?Apparel, along with food and grocery, will lead organized retailing in

India.


2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep 2010

502 492 542 563 589 616 651 661 630 644



the organized retail market inIndia is expected to reachUS$ 50 billion by 2011


0.41%

Jan - March 2010

2600


18/44


energyEmployment in March 2010 878,200Estimated Employment in June 2010 883,400Expected Employment in Sep 2010 890,400


19/44

45000

40000

35000

30000

25000

20000

15000

10000

5000

0

0.59%

0.80%

5200 7000

It is expected thatthe Energy and Infrastructure sector will registeran increase in employment to the tune of 12,200.


?Large allocation of funds for rural development and announcement ofenhanced income tax benefit on investing in infrastructure bonds wouldplay a positive role for the growth of the sector.?Provision of Rs. 173,552 crore to plan allocation for infrastructure

development, Rs. 48,000 crore for Bharat Nirman, an allocation of Rs.20,000 crore for IIFCL disbursement will have a positive role for thegrowth of the sector?Increase in economic activities during the last couple of quarters is also a

demand driving force for the sector?Private power companies including Tata Power, Reliance Power, GMR

Infrastructure and JSW Energy have acquired coal assets overseas inIndonesia and South Africa. NTPC, the state-owned company, plans tobuy mines overseas to source 67% of its imports.?India plans to almost double its power generation capacity by 2012.

Sanction of new power plants in different states has been one of theboosting factor for the sector?Huge potential of renewable energy in the country has increased the

private sector participation significantly in recent times which willgradually play its role in employment generation.?Decontrol of price of select petro-products is one significant step to

boost competition in the sector which will encourage the sector playersto grow further?However, the sector is still far away from achieving its full potential. The

regulatory reforms are needed to allow the sector to grow in i ts fullpotential. Positive steps of the governments towards that and policiesencouraging more private sector participation are yet to see results.


987 965 963 951 941 930 927 938 874 890

2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep 2010



India plans to almost double itspower generation capacity by2012


0.48%

Jan - March 2010

4200


20/44


transport, storage

and communication



21/44

45000

40000

35000

30000

25000

20000

15000

10000

5000

0

0.30% 0.31%

7900 8300

It is expected thatthe Transport, Storage & Communication sectorwill register an increase in employment to thetune of 16,200.


?Three major M & A deals took place in the telecom sector during April-June 2010, valuing USD 22,732.26 million, which represented 67.19 per

cent share in the total valuation of the M & A deals that occurred duringthat period.?The much awaited 3G auction was completed with Indian government

getting a bonanza of a trillion rupees (Rs 1 lakh crore), much above theexpected revenues from the auction.?Transport sector remained one of the weakest in hiring scenario.

Financing the maintenance of transport infrastructure, managing urbancongestion, supply chain disruption on account poor rural connectivity,loading of environmental costs as an integral project cost would be fewof the challenges that transport infrastructure industry will be facing.?The country faces constraints in allocating sufficient capital to transport

infrastructure. Moreover, the government would not be able tocompletely shift transport infrastructure investments to the private sectorthrough means such as PPP.?

Logistics firms are attempting to find solutions to remove transportbottlenecks and devise ways around them, among a range of steps tomake cargo carriage cheaper and faster.


2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep 2010

3118 3085 3018 2969 2920 2870 2823 2824 2638 2661



transport sector remained oneof the weakest in hiringscenario


0.27%

Jan - March 2010

7100


22/44


real estate and

construction

Employment in March 2010 739,012Estimated Employment in June 2010 775,012Expected Employment in Sep 2010 823,212


23/44

4.87%

6.52%

36000 48200

It is expected thatthe Real Estate and Construction sector willregister an increase in employment to the tune of84,200.


?Recovery from economic crisis and the positive sentiment towards thesector has made the sector one of the most important contributors to

the countrys employment base during April to June 2010.?Owing to all the recent developments in the Indian real estate sector, ithas moved five places upwards in world rankings.?Residential segment witnessed substantial activity in terms of new project

launches and price appreciation. The growing consumer confidence anda strong economic outlook have encouraged the developers acrossregions to market their planned projects.?Because the demand in the affordable housing segment is encouraging,

real estate developers now concentrating on profits through high-volume, low margin deals instead of high-margin and high-qualitytransactions. This is also playing its role in employment growth in thesector through greater construction activities.?A global real estate companys report suggests that during 2010-12,

around 55 million sq ft of retail space will be ready in Mumbai, NCR,

Bangalore, Kolkata, Chennai, Hyderabad and Pune. Besides, between2010 and 2012, the organized retail real estate stock will grow from theexisting 41 million sq ft to 95 million sq ft.?While the government has taken various steps to develop the whole

industry, there is a further need to streamline government policies andintroduce reforms to boost the real estate sector. Industry experts areadvocating a further substantial cut in interest rates and greater ease incredit financing. If these are taken care of, the sector will experiencefurther growth and will also contribute significant numbers inemployment in coming months.


2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep 2010

1183 1082 992 926 863 804 771 804 730 823



around 55 million sq ft of retailspace will be ready in Mumbai,

NCR, Bangalore, Kolkata,Chennai, Hyderabad and Puneduring 2010 - 2012


90000

80000

70000

60000

50000

40000

30000

20000

10000

0

1.23%

Jan - March 2010

9012


24/44


hospitalityEmployment in March 2010 5,972,500Estimated Employment in June 2010 6,013,900Expected Employment in Sep 2010 6,065,900


25/44

90000

80000

70000

60000

50000

40000

30000

20000

10000

0

0.69%

0.87%

41400 52000

It is expected thatthe Hospitality sector will register an increase inemployment to the tune of 93,400.


?Hospitality was one of the fastest growing sectors that was hit hardduring the recession.?It is now gaining momentum since end 2009 and is expected to grow

again at a faster pace. This i s also one of the sectors that generate

significant employment in the economy and the survey suggests that it isexpected to contribute a significant proportion of the new employmentgeneration for the country.?Announcement of Investment linked tax deduction on capex in the Union

Budget 2010-11 has given a big boost to the hospitality sector. This willplay strong positive role in hospitality sector growth in the comingmonths.?Increase in allocation across schemes for infrastructure as well as road

development will also play a positive role.?Number of inbound tourists to India as well as domestic tourists has

increased significantly over the period struck by global economicrecession. This has again helping the sector to regain confidence and toexpand further.


4764 4946 5134 5330 5533 5744 6156 6452 5951 6065

2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep 2010



increase in allocation acrossschemes for infrastructure as well

as road development will play apositive role in the growth of thesector


0.36%

Jan - March 2010

21500


26/44


media and

entertainment



27/44

1.45%1.64%

18600 21000

It is expected thatthe Media and Entertainment sector will registeran increase in employment to the tune of 39,600.


?The Indian media and entertainment industry is slated to grow at acompounded annual growth rate of 12.4 per cent over the next fiveyears to Rs 1,04,080 crore, according to a PricewaterhouseCoopersreport.?

For the television industry, the report estimates a growth of 12.9 per centcumulatively over the next five years, to reach Rs 48,800 crore by 2014from Rs 26,550 crore in 2009.?Radio is expected to grow at 12.2 per cent over 2010-14 and reach Rs

1,600 crore by 2014 from Rs 900 crore in 2009 while the Internet istipped to grow by 20.1 per cent over the next five years to Rs 1,500crore by 2014. Gaming could maintain stable growth at 25.2 per cent inthe next five years to reach Rs 7,340 crore by 2014.?According to a media research report advertising in newspapers and on

television in this financial year will grow at more than twice the pace ofthe last year, driven by sectors such as telecom, consumer goods,financial services, automobiles and retail.?Television advertising is expected to grow 20% in 2011 and print

advertising 7%.


advertising will grow at morethan twice the pace of the last

year, driven by sectors such astelecom, consumer goods,financial services, automobilesand retail


45000

40000

35000

30000

25000

20000

15000

10000

5000

0

0.52%

Jan - March 2010

10300


28/44


manufacturingnon-machinery products



29/44

45000

40000

35000

30000

25000

20000

15000

10000

5000

0

0.30%

0.34%

13200 15100

It is expected thatthe Manufacturing - Non-Machinery Productssector will register an increase in employment tothe tune of 28,300.


?A positive is growth momentum of the sector continues.?Competition faced from imports and high prices of raw materials are

significantly impacting the growth of several sub-sectors of this majorsector.?By 2010, India is expected to double its share in the international

technical textile market?The Indian textile export market is expected to reach a high of $50 billion

in 2010, and this will further strengthen this industry sector.?Despite weakness in demand in some regions, Indias exports of

manufactured goods seem to be picking-up.


2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep 2010

6580 6383 6545 6459 5496 5315 5045 4934 4,671 4461



the Indian textile export marketis expected to reach a high of

$50 billion in 2010


0.21%

Jan - March 2010

9300


30/44


manufacturingmachineries and equipments



31/44

45000

40000

35000

30000

25000

20000

15000

10000

5000

0

0.38%

0.61%

4200 6800

It is expected thatthe Manufacturing Machineries and Equipmentssector will register an increase in employment tothe tune of 11,000.


?Index of Industrial productions for the sub-sectors suggest continuum ofstrong growth momentum that started from end of December 2009which marked the recovery of the sector.?The sector recorded higher growth during the 2nd quarter of the year

compared to the first quarter and is expected to grow at further highergrowth during the 3rd quarter.?Sales of automobiles and other engineering products are still in the

forefront to spread the positive sentiments across the sector.?Higher economic activities will further boost the demand for the

machinery manufacturing sector.?Consumer durables are growing substantially and expecting further

growth in the coming months based on the fact that economic recoveryhas strengthened the purchasing power of the population.?Though we notice higher growth in employment generation by the

sector in 2nd quarter compared to first quarter as well as even higherexpectation for the next quarter, the generation in employment in thissector is always lower than the growth in production since this is morecapital intensive industry than labour intensive.?However, greater demand resulted into higher capacity utilization

coupled with stable economic growth will necessitate the investment infurther production capacities which will act as a driving force for furtheremployment generation.


2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep 2010

1296 1231 1259 1263 991 943 894 901 1106 1120



automobiles and otherengineering products sales still in

the forefront, spreading positivesentiments for the sector


0.28%

Jan - March 2010

3100


32/44


33/44

45000

40000

35000

30000

25000

20000

15000

10000

5000

0

0.18%

0.23%

18000 22400

It is expected thatthe Education, Training and Consulting sector willregister an increase in employment to the tune of40,400.


?This sector is one of the largest contributor to the employment base ofthe country?With 13.5 crore children in primary schools, India has the largest student

population and it requires continuous flow of manpower (teaching aswell as non-teaching) for the educational sector to cater such a largenumber of students in the country.?The demand for training, research and consultancy is on the upswing

which helps generating employment significantly.?Demand from the private sector educational institutes will play a major

role in generating new employment in the sector.?An ASSOCHAM study revealed that the education market in India is

approximately $40 billion and expected to grow 70% to $68 billion inthe next three years of which private equity investments would be morethan 75 per cent of projected levels since growth will have to begenerated through the PPP model.


2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep 2010

7566 7950 8353 8777 9222 9690 10262 10383 9715 9771



the demand for training,research and consultancy is on

the upswing resulting inincreased job generation


0.17%

Jan - March 2010

16200


34/44

Ahmedabad

Hiring has been continuing since December 2009. The mood of the companiesare positive and strong. A further growth is expected. A positive trend andhigher growth in employment is expected during the quarter July to September2010.

Bangalore

Hiring has increased substantially compared to the last quarter. The majordriving force is IT & ITES sector boom. It is expected that during the course ofthe next quarter the scenario will improve further.

Chennai

Hiring went up significantly during the April to June quarter. The prime leaderswere IT and manufacturing. It is expected that the same momentum willcontinue and employment will grow almost at the same pace during the nextquarter.

Delhi & NCR

Significant hiring has taken place during the quarter April to June 2010.Services sector was the key driving force. A better performance is expected forthe next quarter.

HyderabadHiring has improved compared to the last quarter. Expectations for the comingmonths are even better.

Kolkata

Hiring situation has remained almost the same as that of the first quarter of2010. Growth in employment has remained almost at the same level. Not muchchange is expected for the next quarter. Political instability in the state is playingits part despite strong economic factors.

Mumbai

Mumbai hiring situation has improved significantly compared to the lastquarter. BFSI, Trade, Real Estate and few other sectors are major influencers.Hiring situation is expected to strengthen further in the July to Septemberquarter.

Pune

Punes strong positive movement in hiring across sectors continued during thesecond quarter of the year. Real estate, IT&ITES and Manufacturing sectors

were the key driving force behind this. The next quarter should also experiencehigh growth in employment in this city.

city wiseemployment outlook


35/44

25000

24000

23000

22000

21000

20000

19000

18000

17000

16000

15000

14000

13000

12000

11000

10000

9000

8000

7000

6000

5000

4000

3000

2000

1000

0

estimated increase in employment - city wise

Apr - June2010

Ahmedabad

July - Sep2010

1650 1980

Apr - June2010

Bangalore

July - Sep2010

3800 6831

Apr - June2010

Chennai

July - Sep2010

5992 6150

Apr - June2010

Delhi & NCR

July - Sep2010

1 83 03 1 96 20

Apr - June2010

Hyderabad

July - Sep2010

3104 3210

Apr - June2010

Kolkata

July - Sep2010

3734 3760

Apr - June2010

Mumbai

July - Sep2010

13 02 2 1 39 00

Apr - June2010

Pune

July - Sep2010

2598 2884

4.22%4.55%

3.26%

3.56%

1.91%

1.96%

4.19%4.33%

2.58% 2.60%

2.28%

2.43%

4.89%

5.44%

3.60%

3.85%


36/44

The organized sector employment accounts less than 10 per cent of the total workforce of India. However, the situation has been

gradually improving. Except the period of economic recessions during last couple of years, the organized sector employment has beenincreasing over the years. Employment survey of Ma Foi in 2007 found that the stagnation was over for the organized sector. Thesurvey results indicated that employment opportunities in the organized sector were likely to increase, driven by ongoing economicreforms in the country as well as greater participation of the private sector in core economic activities. India was impacted by the globalrecession in 2008, but it recovered soon and registered an impressive GDP growth in last few months which was above the generalexpectations.

The growth of the employment in organized sector was adversely affected by the recession, but the sentiments got positive in early2010. Ma Foi Randstad Employment Survey for the 1st quarter 2010 has shown that the worst was over and a sense of optimism wasgradually spreading across the sectors. However, in most of the sectors, a cautious movement was noticed in terms of hiring given theimmediate past of the rough time faced by the companies during the downturn. A stable growth coupled with several governmentpolicies to boost the economy has put the Indian economy back in track.

This survey report clearly indicates that industries have regained their confidence after experiencing higher output and profit levelsduring last 2 quarters of the year. The sector players are more positive on hiring front. It a lso confirms that hiring will gain furthermomentum in the coming months, as opinions of the top management and HR Chiefs suggested. The sense of optimism persists; firmswill start hiring aggressively if the economy sustains a stable growth for another two quarters. This survey also shows that the expectedhiring during the 3nd quarter of the year, i.e., July to September 2010 will be significantly higher than the 2nd quarter in all thesectors.

Amongst the sectors covered under the survey, Healthcare, Hospitality, Real Estate & Construction, IT & ITES and Education are amongthe top most sectors contributing to the most of new jobs being created in the country. Transport remains one of the lagging sectorswithin the economy. Real estate & construction, Pharma and Healthcare have been growing the fastest in April-September. A snapshotof the likely performance of the sectors during April to September 2010 is presented in the report. It is expected that more than 5.75

lakh jobs will be generated in the economy during the second and third quarters of the current year.

summary and conclusion


37/44

1. BFSI 856,400

2. IT & ITES 1,800,200

3. Pharma 248,900

4. Healthcare 3,175,752

5. Trade including CRS 633,400

6. Energy 878,200

7. Transport, Storage and Communication 2,645,100

8. Real Estate and Construction 739,012

9. Hospitality 5,972,500

10.Media and entertainment 1,282,300

11. Non-machinery Manufacturing 4,433,300

12. Manufacturing of machineries and equipments 1,109,100

13. Education, Training and Consultancy 9,731,200

32500

61200

14700

140800

10900

12200

16200

84200

93400

39600

28300

11000

40400

3.79

3.39

5.90

4.43

1.72

1.39

0.61

11.39

1.56

3.09

0.64

0.99

0.42

Expected Employment Scenario till June 2010

SectorEmployment in

March 2010

Expected Increase inEmployment duringApr. to Sept. 2010

Expected growth inEmployment duringApr. to Sept. 2010


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Cat.1 Cat.2 Cat.3

BFSI 1.9 1.2 0.7

IT & ITES 2.6 2 1.2

Pharma 2.8 6 2.5

Healthcare 2.4 2 1.8

Trade including CRS 1.9 1.8 1.3

Energy 3.1 3.3 2.1

Transport, Storage and Communication 2.1 1.9 1.6

Real Estate and Construction 2.3 2.1 1.5

Hospitality 2.8 1.8 1.5

Media & Entertainment 1.7 0.9 1.3

Non- machinery Manufacturing 1.6 1.7 2.4

Manufacturing of Machineries and Equipments 2.4 2.2 2.2

Education, Training and Consultancy 2.7 1.8 1.4

Cat.1 Cat.2 Cat.3

3.5 2.5 1.3

4.1 2.5 2.1

3.2 2.6 2.5

3.5 3 2.8

2.5 1.8 1.5

3.2 3.1 2.6

3.2 2.7 2.1

4.6 3.3 2

2.5 2.6 2.2

2.3 2 1.5

2.4 2.1 2.1

2.7 2.3 2.4

3.1 2.8 2.2

Cat.1 Cat.2 Cat.3

3.5 2.7 1.5

4.3 2.6 2.1

4.3 3.3 3

3.8 3.3 2.9

2.7 2.4 1.6

3.5 3.1 2.9

3.5 3.5 3

4.7 3.9 3.3

3 3.1 2.5

3.2 3.1 2

2.8 2.4 2.5

3 3 2.5

3.5 3.2 2.8

BFSI 1.2 1.9IT & ITES 2 2.8Pharma 2.5 2.8Healthcare 2 3Trade including CRS 1.7 1.9Energy 2.7 3Transport, Storage and Communication 1.9 2.5Real Estate and Construction 2 3.2Hospitality 2.1 2.5Media & Entertainment 1.3 1.9

Non- machinery Manufacturing 1.8 2.2Manufacturing of Machineries and Equipments 2.3 2.4Education, Training and Consultancy 2.3 2.7

2.53.03.53.42.33.13.34.02.92.8

2.62.83.1

A-1: Increase in Salary across Sectors

A-2: Increase in Salary across Sectors and Size of the Companies

Sector

Sector

Estimated AverageIncrease during

1st Quarter of 2010

Estimated AverageIncrease in

1st Quarter of 2010

Estimated AverageIncrease during

2nd Quarter of 2010

Estimated AverageIncrease in

2nd Quarter of 2010

Expected AverageIncrease during

3rd Quarter of 2010

Expected AverageIncrease in

3rd Quarter of 2010

(in per cent)

(in per cent)

Note:Cat. 1 stands for companies with turnover >500 crore,Cat. 2 stands for companies with turnover between 100 crore to 500 croreCat. 3 stands for companies with turnover


39/44

Ahmedabad 27,323 32,487 37,555 39,095 40,745Bangalore 80,666 93,462 103,705 106,705 110,182Chennai 264,125 289,343 308,329 313,929 319,921Delhi & NCR 369,556 433,800 491,411 509,061 527,364Hyderabad 46,605 60,427 71,267 74,067 77,171Kolkata 113,077 127,792 140,807 144,557 148,291Mumbai 464,084 517,008 558,464 571,214 584,236Pune 33,792 43,300 50,752 53,052 55,650

42,525113,982326,071546,984

80,381152,051598,136

58,534

A-3: City wise Total Employment

City Employment

December 2007

Employment

December 2008

EstimatedEmployment

December 2009

EstimatedEmployment

March 2010

EstimatedEmployment

June 2010

ExpectedEmployment

September 2010

Ahmedabad 2.9 3.0Bengaluru 1.8 3.4Chennai 2.2 3.0Delhi and NCR 2.4 3.1Hyderabad 2.0 2.9Kolkata 2.5 2.7Mumbai 2.6 2.8Pune 1.9 2.5

3.24.93.23.53.23.03.13.5

A-5: Expected Increase in Salary across Cities

CityEstimated Average Increase

in 1st Quarter of 2010Estimated Average Increase

in 2nd Quarter of 2010Expected Average Increase

in 3rd Quarter of 2010

(in per cent)

Note: The employment figures for 2007 and 2008 are taken from MeTS 2008. Growth figures are relative to March 2010 estimates.

Ahmedabad 1540 1650 1780 4.22 4.55 8.77

Bangalore 3000 3477 3800 3.26 3.56 6.82

Chennai 5600 5992 6150 1.91 1.96 3.87

Delhi & NCR 17650 18303 19620 3.60 3.85 7.45

Hyderabad 2800 3104 3210 4.19 4.33 8.52

Kolkata 3750 3704 3760 2.56 2.60 5.18

Mumbai 12750 13022 13900 2.28 2.43 4.71

Pune 2300 2598 2884 4.90 5.44 10.33

3430

6831

11851

37683

6180

7201

26724

5282

A-4: City-wise Increase in Employment

City Estimated ChangeJan to March 2010

Expected ChangeJuly to Sept 2010

ExpectedTotal Increase

Jan to Sept 2010

Growth rateApr to June 2010

(%)

Growth rateJuly to Sept 2010

(%)

Growth rateApril to Sept 2010

(%)

Expected ChangeApr to June 2010


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BFSI 65.7

IT & ITES 72.2

Pharma 86.8

Healthcare 61.9

Trade including CRS 74.7

Energy 74.2

Transport, Storage and Communication 70.3

Real Estate and Construction 73.8

Hospitality 73.1

Media & Entertainment 76

Non- machinery Manufacturing 72.5

Manufacturing of Machineries and Equipments 69.8

Education, Training and Consultancy 74.3

34.3

27.8

13.2

38.1

25.3

25.8

29.7

26.2

26.9

24

27.5

30.2

25.7

A-6: Estimated Proportion of Fresher/Experienced Manpower across Sectors

Sector Proportion of Fresher (%) Proportion of Experienced (%)

(in per cent)

Ahmedabad 67.4Bengalore 69.9Chennai 78.7New Delhi & NCR 64.9Hyderabad 76.5Kolkata 82.0Mumbai 76.5Pune 73.8

32.630.121.335.123.518.023.526.2

A-7: Estimated Proportion of Fresher/Experienced Manpower across Cities

City Proportion of Fresher Proportion of Experienced

(in per cent)


41/44

BFSI

IT & ITES

Pharma

Healthcare

CRS

Energy

Transport, Storage and Communication

Real Estate and Construction

Hospitality

Media & Entertainment

Non- machinery Manufacturing

Manufacturing of Machineries and Equipments

Education, Training and Consultancy

14.5

13.6

9.9

6.3

20.7

8.1

13.5

16.5

11.8

10.3

17.8

14.9

14.5

A-9: Estimated Percentage of Work Outsourced Across Sectors

Sector Percentage of work outsourced

(in per cent)

BFSI 35.9 64.1

IT & ITES 29.8 70.2

Pharma 15.3 84.7

Healthcare 33.9 66.1

CRS 26.3 73.7

Energy 28.2 71.8

Transport, Storage and Communication 30 70

Real Estate and Construction 26.8 73.2

Hospitality 29.5 70.5Media & Entertainment 24.3 75.7

Non- machinery Manufacturing 30.4 69.6

Manufacturing of Machineries and Equipments 30 70

Education, Training and Consultancy 25.5 74.5

32.6 67.4

22.7 77.3

11.2 88.8

27.3 72.7

22.7 77.3

26.6 73.4

24 76

22.1 77.9

21.8 78.220.7 79.3

26.8 73.2

29.7 70.3

24.4 75.6

A-8: Estimated Proportion of Fresher/Experienced across Sectors and Ownership

Sector

Public Limited Private Limited

Proportion ofFreshers

Proportion ofFreshersProportion ofExperiencedProportion ofExperienced

(in per cent)


42/44

about

Ma Foi Randstad

Ma Foi Randstad is an international HR service provider servicingworld class companies across the globe. Started in 1992, thecompany has grown into a full spectrum HR services provider forclients worldwide. It has helped generate career opportunities formore than 2, 99, 000 individuals in 36 countries and has workedfor over 250 Fortune 500 organizations.

Ma Foi Randstad offers the broadest HR services portfolio rangingfrom Search, Selection, Staffing, Consulting, Outsourcing, Trainingand HR Automation. The organization has a vast network ofoffices across the country to be within reach of candidates and

flexi workers.

Ma Foi Randstad continues to focus on developing customized andinnovative HR services, leveraging on its unique strengths ofgeographical presence and end-to-end capability across all HRservice functions.

about

Randstad

Randstad specializes in solutions in the field of flexible work andhuman resources services. Our services range from regulartemporary staffing and permanent placement to inhouse,professionals, search & selection, and HR Solutions. Since acquiringVedior in 2008, the Randstad Group is the second largest HRservices provider in the world with top three positions inArgentina, Belgium & Luxembourg, Canada, Chile, France,Germany, Greece & Cyprus, India, Mexico, the Netherlands,Poland, Portugal, Spain, Switzerland and the UK, as well as majorpositions in Australia and the United States. End 2009 Randstadhad approximately 25,500 employees working from over 4,100

branches and inhouse locations in 44 countries around the world.

Randstad generated revenue of 12.4 billion in 2009. Randstadwas founded in 1960 and is headquartered in Diemen, theNetherlands. Randstad Holding NV is listed on the NYSE EuronextAmsterdam, where options for stocks in Randstad are also traded.For more information see www.randstad.com

HR statistical researchWe offer comprehensive research consulting that helps

our clients in informed decision making. Our team ofdedicated research professionals use proven researchmethods to gather data, interpret it and prepare acomprehensive and valuable report for the client.

Some of our research services include:

?Benchmarking HR practices involves recruitmentstrategies, innovations in retention policies andperformance management systems.?India entry strategy helps global clients set shop in

India. We support clients by providing them researchsupport for location, people and operations.?Factor costing is a comparative study of locations

(cities) in terms of factor costs - infrastructure,availability of people, technology and public facilitiesamong others.?Resource pool analysis helps in the assessment.

If you are looking for statistical research assistance, pleasewrite to us at [email protected].


43/44

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 andsub-national 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 inIndia. The extension of the competitive market mechanism of resource allocation to the economy as a whole requires rigorous and robust understanding of institutionsthat 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, variousministries; 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 ourkey 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 ofIndia 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 qualityof output. Our persistent endeavor to keep abreast of new developments in research methodology gives us the ability to bring out fresh insights from otherwiseintractable 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, Indicusconducts large scale surveys, qualitative analysis, indexation, forecasting, evaluation and monitoring, publishes white papers and policy briefs.

aboutIndicus Analytics


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www.mafoirandstad.com

for more details please write [email protected]

or call us at+91 44 66228134+91 92823 21313

Corporate Office:Ma Foi Management Consultants Ltd.49, Cathedral RoadChennai 600 086. India

Mets September 2010 Ver4

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