IT, banking and finance sectors accounted for a whopping 93 per cent of the 3.82 lakh net increase in jobs in India Inc. during the financial year 2021-22, according to an analysis of 675 listed companies across 30-plus sectors by Bank of Baroda Economic Research.
Early indications based on employment data from Annual Reports of 675 companies showed that jobs growth was not broad-based. Excluding these three sectors from the employment growth figure, the growth would have been just 1.8 per cent as opposed to the current 10.2 per cent, the report showed.
Total employment for the sample companies rose 10.2 per cent from 37.4 lakh in FY21 to 41.2 lakh in FY22. The report highlights that the growth was impressive because the growth was flat in FY21 as headcount in FY20 was 37.3 lakh.
“It must be pointed out here that these three sectors were operating largely in a normal manner during the lockdown with substantial activity being conducted in these businesses. The IT sector did not get into the hiring mode in FY21 but more than made up in FY22. Banks have maintained growth of 4-5 per cent with the private sector banks taking a major lead in hiring of staff. For NBFCs, employment declined in FY21 and then recovered in FY22 to grow by double digits,” the report said.
The 10 industries of IT, Bank, Finance, Infrastructure, Insurance, Textiles, Retailing, Iron & Steel, FMCG and Chemicals registered substantial increase in their employment numbers in FY22. Eight others showed positive growth. The 14 sectors of Mining, Paper, Trading, Alcohol, Electricals, Construction Materials, Media & Entertainment, Logistics, Consumer Durables, Non-Ferrous Metals, Hospitality, Auto & Ancillaries, Agri-based, Healthcare witnessed a fall in employment in FY21. Healthcare witnessed the highest decline in absolute terms.
Most sectors which witnessed decline in headcount were in the services space. The exceptions were automobiles, consumer durable goods, paper, alcohol, non-ferrous metals, construction material and electrical.
“It does appear that the companies have been cautious when hiring more employees and are going slow in recruitment depending on the demand conditions. Even sectors that had fewer restrictions by the end of March 2022 have moved slowly along the path. The picture for services could improve as it was only late towards the end of the fiscal that the restrictions on operations were eased,” said the report.