Employment Trends Survey-- MaFoi Consultancy 2011

8/3/2019 Employment Trends Survey-- MaFoi Consultancy 2011

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Ma Foi RandstadEmployment Trends Survey

Wave 3 - 2011


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in this report...

?Indian Economy Sluggish but not Panicky?Data and Methodology?Estimates of Employment Generation in Different Sectors

?Banking, Financial Services and Insurance

?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 SectorsA2: Expected Increase in Salary across Different Sectors - Lateral Job ShiftA3: Composition of New Hires by ExperienceA4: Composition of New Hires by Functional AreasA5: Share of Different Hiring Sources for New HiresA6: City-wise Expected EmploymentA7: City-wise Likely Increase in Salary - Lateral Job ShiftA8 : City-wise Share of Different Experience Brackets amongst New HiresA9: 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 astudy 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 from2010, 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. Thepresent survey captures the employment situation in the organized sector for the third quarter of 2011 (from June to September 2011) andthe likely scenario for the fourth quarter of the year (October to December 2011). The study is based on a sample survey conducted for 676companies across 13 different sectors of the economy, mainly during the month of September 2011. The feedback was gathered from thetop HR personnel or top management of the companies who could share valuable insights regarding the previous as well as next quarterscenario about employment related issues. The major focus of the survey is to estimate the changes in employment scenario across sectorsand space. The other issues highlighted in the survey are changes in salary for the lateral hiring, recruitments by experience categories andhiring 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 apicture of the changing pattern of the employment for different sectors of the economy. A snapshot of the changing scenario for selectedcities is also given in this section. The final section, Section D concludes the study highlighting key issues.


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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, 2010-11. Agriculture, Forestry & Fishing and Electricity, Gas & WaterSupply sectors showed significantly higher growth in Q1 of currentfinancial year as compared to the last year. Trade, Hotels,Transport & Communication Sectors retained their high growthtrajectory. On the other hand, Mining & Quarrying andConstruction 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 ofthe 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 of9%. Earlier, India had achieved an average growth rate of about9% during 200408, which was interrupted by the global financialcrisis. In the aftermath of the crisis, average growth rate hasdropped by about one percentage point, to 7.8% during200911. In 201112, the terminal year of the Eleventh Plan, RBIexpects growth to be about 8 per cent. The IMF has forecastedIndia's economy to grow at a slower pace of 7.8% in 2011-12 and7.5% in 2012, down from its June forecasts of 8.2% and 7.8%respectively. Considering Indias growth experience in the postfinancial crisis period (2009-11) and the current adverse worldeconomic outlook, the next Twelfth Five Year Plans target growth

rate may not be achieved, more so if the current high inflation ratepersists for a longer time period. According to a Reserve Bank ofIndia study, inflation has a negative effect on growth when thewholesale price index (WPI) based on inflation goes beyond the5.5% per cent threshold. However, India, along with China, willcontinue to be one of the fastest growing economies.

India's food inflation continued its northward movement in theweek ended September 24, as it rose to 9.41% against 9.13% inthe previous week. On a week-on-week basis, the food articlesindex rose a marginal 0.2% to 197.7, recording the eighthsuccessive week of rising prices. This is however, lower than last52 week average of 10.88%. The continued increase in pricesdespite good rains in the last two years indicate a structural shift indemand and supply, due to the rise in rural income and laboursupply constraints. The WPI for the week ended 24th September,

2011 for primary articles showed some easing, to 10.84% in theweek ended September 24, as against 11.43% during previousweek. In the corresponding week, last fiscal primary articleinflation was at 19.58%. The 52 week average is at 14.50%. Thenon-food inflation in the week under review, slowed further to10.77%, as against 12.89% in the previous week. In thecorresponding week of the last fiscal, it was at 24.73% and the 52week average is at 24.31%.

In its bid to control inflationary pressure, RBI had increased therepo rate by 350 bps, which is from a low of 4.75% (repo rate) to8.25% in the past 18 months. At one hand this has increased theinput costs, while on the other, it has raised concerns over themoderation of loan demand and the increase in asset-quality risksfor the financial sector. The twin effects of inflationary pressureand increased capital costs, is also reflected in the lower advancetax payment, by India Inc. for the Q2 of FY 2011-12. The advancetax payment by top 100 companies rose to a modest 9.9% for theJuly to September quarter from a year ago, as against 19% for theApril-June quarter. This suggests that the corporate profit growthis likely to be muted in the second quarter.

Indian Economy

sluggish but not panickyProduction in eight core industries (Coal, Crude Oil, Natural Gas,Refinery Products, Fertilizers, Steel, Cement, Electricity) grew at aslower pace of 5.3%, during the April-August 2011 period, ascompared to 6.3% growth rate over the same period last year.The y-o-y growth rate of production of these eight industries wasat 3.52% for the month of August 2011, almost halved whencompared 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 theindex, expanded by 2.3 % in July 11, as against 10.8% in July10 and 10.3% during June 11. April to July cumulative growthrate also decelerated from 10.5% last year to 6.1% this year. Themining sector expanded by 2.8 % in July 11 against 8.7% in July10. The growth of consumer goods sector was higher at 6.2 %compared to 5.8% last July. The growth was mainly due to theturnaround in the consumer non-durables sector (-0.9% to4.1%). The consumer durable production growth deceleratedfrom 14.8% last July to 8.6% in July 2011. Electricity generationgrew by 13.1 % in July, against 7.9 % during June 2011 and3.7% 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%, whichwas lower than 9.7% achieved for the corresponding period last

year. The July growth rate at 3.3%, is also lower than thecorresponding figures of June 11 (8.8%) & July 10 (9.9%).

Economic slowdown has resulted in lower than budgetedcollection of tax revenue coupled with lower collection undersmall savings schemes. This may lead to a higher level ofGovernment borrowing than that was projected for the secondhalf of the fiscal. The unfavourable equity market condition hasalso forced the Government to put its disinvestment programmeon hold. It is now projected that the Government will borrow Rs528 billion more from the bond market, during Oct 11 Mar 12period, than what was proposed in the budget in Feb 11. Thebenchmark 10-year bond yield spiked 8 basis points to 8.43 percent immediately after the announcement and the benchmark 5-year swap rate rose 12 bps to 7.15 per cent and the one-year raterose 6 bps at 7.96 per cent.

Volatile crude oil prices and sharp rupee depreciation has forcedoil companies to hike petrol prices by Rs 3.14 per litre. The fuel &power prices remained stable, with a y-o-y inflation rate of14.69% for week ending 24th September, 2011. This was higherthan fiscal inflation rate of 10.80% for the last correspondingweek and a 52 week average of 12.41%. Oil imports duringAugust 11 were valued at US $ 10,278.7 million, which was48.72% higher than oil imports worth US$ 6,911.6 million inAugust 10. Oil imports during April-August, FY 2011-12 werevalued at US$ 52,251.2 million which was 27.09% higher thancorresponding period last year.


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data sourcesThe study has used both primary and secondary data to arrive 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) 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 specificdomains. However, data from most of these secondary sources are not up-to-date. Therefore the estimationprocedure is used to take care of this problem, by using up-to-date figures on sectoral GDP (Gross DomesticProduct) and Index of Industrial Production (IIP).

Once estimates of base sector level employment was obtained, the data captured through primary survey of 676firms across sectors were used to arrive at estimates on different parameters. Rigorous estimation procedures wereused along with the primary survey data of the companies to estimate parameters for the third quarter of the year2011 and expectations regarding the fourth quarter of 2011.

Sl. No. Sector No. of companies covered

1 BFSI 54

2 Education, Training and Consultancy 55

3 Energy 28

4 Healthcare 40

5 Hospitality 61

6 IT & ITES 57

7 Manufacturing of machineries and equipments 82

8 Non-machinery Manufacturing 83

9 Media and entertainment 35

10 Pharma 39

11 Real Estate and Construction 55

12 Trade including CRS 44

13 Transport, Storage and Communication 43

Coverage of Primary Survey

Exports during August 11 were valued at US$ 24,312.53 millionwhich was 44.25% higher in than US$ 16,854.16 million worth ofexports in August 10. Cumulative value of exports for the periodApril-August in FY 2011 - 12 was US$ 134,502.54 million asagainst US $87,218.51 million last year, registering a growth of54.21%. Imports during August 11 were valued at US$38,354.15 million (Rs.173,663 crore) representing a growth of41.82%. Cumulative value of imports for the first five months ofFY 2011-12 was at US $189,393.77 million against US$134,928.14 million last year, thus growing at 40.37%. Thecumulative trade deficit was estimated at US $54,891.23 million,which is higher than the US$ 47,709.63 million deficit during AprilAugust of FY 2010-11.

The rupee has been the worst performer among the Asiancurrencies over the last few months. The rupee fell 5.9% againstUS$ in September and is currently quoted at 49.023 against the2011 high of 43.855 that was reached in late July. This will have amajor impact on Indias import bill, particularly for oil imports. Ifthe international price of oil does not ease, weak rupee conditionis likely to play a major role in increasing the inflation, which isalready 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 lastyear. Around 35% of FDI came through the Mauritius route.Singapore, UK and Germany were the other three major points oforigination. Drugs and Pharmaceuticals sector was the majorattractor (US$ 3.00 billion), followed by Services sector (US$ 2.46billion) and Telecommunication sector (US$ 1.74 billion).


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Expected Employment Increase in Different Sectors

Sectors

estimates ofemploymentgeneration in

different sectors

BFSI 939,800 15,300 14,800 11,900 1.57 1.27

Education, Training and Consultancy 9,839,200 24,500 21,600 20,700 0.22 0.21

Energy 910,100 7,900 7,500 6,600 0.82 0.73

Healthcare 3,492,700 63,800 60,400 58,700 1.73 1.68

Hospitality 6,205,600 54,400 48,400 41,600 0.78 0.67

IT & ITES 2,010,000 55,500 46,600 41,600 2.32 2.07

Manufacturing of machineries and equipments 1,164,600 14,500 13,800 14,000 1.19 1.20

Non-machinery Manufacturing 4,589,100 36,100 36,500 38,300 0.80 0.83

Media and entertainment 1,413,000 31,300 30,900 32,800 2.19 2.32

Pharma 309,000 11,300 12,600 12,800 4.08 4.14

Real Estate and Construction 934,300 29,600 30,700 26,200 3.29 2.80

Trade including CRS 671,500 10,800 9,700 9,900 1.44 1.47

Transport, Storage and Communication 2,709,500 14,200 12,500 11,300 0.46 0.42

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

Employment Increase in Employment Per cent increase Jul - Sep

2011Expected

Jul - Sep2011

Estimated

June2011

Jul - Sep2011

Estimated

Oct - Dec2011

Expected

Oct - Dec2011

Expected

Despite the slowdown in Indian economy, it is expected togrow at a healthy rate of 7.8% to 8.0%. As a result,although there will be sectoral variation in the employmentoutlook among the sectors, new jobs will continue to beadded, albeit at a slower pace. Global meltdown andcontinuing high domestic inflation has resulted in increaseof input costs. Concomitant series of increase in policy ratesby Reserve Bank of India has increased the capital cost thusadversely affecting the rate sensitive sectors like real estateand automobile, by decreasing their demand.

The lower general demand level due to reduced disposableincome has also played a role in weakening the job market.In certain sectors like Construction, Governments failuretowards quick implementation of infrastructure projects hasaffected the job generation and seasonal cyclicality indemand is another reason lower employment growth insectors like retail and hospitality.

The overall change in employment in Q2 of FY 2011-12 andchange expected in the Q3 of FY 2011-12 is presentedbelow in the following table. More detailed sectoral levelanalysis highlighting the prospects of these individual

sectors, which will help in analysing why the employmentnumbers are as they are, is presented subsequently.

Expectedincrease inEmployees

2011


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Banking, FinancialServices and InsuranceBetween June and September 2011, theBFSI sector has added 14,800 jobs and isexpected to add another 11,900 jobs

between October and December 2011.

?

against inflation, following up its earlier 10 increases. This will furtherincrease the cost of Fund for both the banks and the borrowers. Someof the rate sensitive sectors like real estate and auto industry arealready experiencing a slowdown in demand. Slower credit growthwill also limit the ability of banks to fully pass on the increase in costof fund, putting pressure on its margin.

?Indian banks had managed to reduce their Gross NPA figures from11.4% in 2001 to 2.4% in 2010. But the increase in the interest rateand faltering growth potential, both domestic and international, hasraised the prospect of increase in bad debts in the books of the banks.

?Given the current inflationary situation, even if the policy rates are notraised further, the interest rate is expected to remain at an elevatedlevel with no cut expected anytime soon. The pressure on Indianbanks is expected to continue for some time.

?Banks raised deposits Rs. 3,223 billion during the April-Septemberperiod, but could disburse credit worth Rs. 1,511 billion only, implyingan incremental credit-deposit ratio of 0.47, which is the lowest in lastfour years.

?Continuing with the negative annualised premium equivalent (APE)growth over the last 3 quarters of 2010-11, the slowdown in LifeInsurance sector continued in Q1 of 2011-12 with the industryregistering negative APE growth of 23%. The private sector faredeven worse at negative growth of 40%. The demand shift towardstraditional Insurance products and away from investment products iscited as the main reason.

?The General insurance industry registered 22.35% growth during Q1of FY2011-12 in terms of gross written premium. It is estimated togrow at over 18% till 2015. In the near term, the premium incomefrom the largest sub-segment of Motor Insurance may slow down dueto faltering auto sales. The second largest vertical - Health Insurance isexpected to retain its positive outlook. The growth in premium isexpected to continue at a compound annual growth rate (CAGR) of

around 28.5% during FY12-FY14.?Overall the employment generation by the BFSI sector in the June-

September 11 quarter has been subdued. It is also expected toremain so unless the underlying economic factors show signs ofimprovement.

RBI raised the policy rate twice in the last quarter to 8.25% in its fight

Estimated Employment

December 2011

939,800 954,600 966,500

Estimated Emp loyment Estimated Emp loyment

June 2011 September 2011

Note: Employment numbers are given as round figures

composition of new hires

Increase in SalaryLateral Job Shift

< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years

Admin / Accountants etc

Core Activities includingMarketing and BD

Customer Service

Senior Management

Campus

HR Agency

Referrals

Social Media

Others

July - September 2011 October - December 2011

12.2% 9.1%

by experience

by function

by hiring sources

16%

19%

3%

2%

32%

11%

49%

68%

5%13%

17%

49%

16%


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Education, Training andConsultingBetween June and September 2011, theEducation, Training and Consultancy sectorhas added 21,600 jobs and is expected to

add another 20,700 jobs between Octoberand December 2011.

?

from April 2010, it is now a fundamental right of all children todemand eight years of quality elementary education. The effort toexpand educational access is severely constrained by the lack ofsuitably qualified, appropriately-trained human resources in adequatenumbers.

?There are half a million vacancies of teachers in the country andanother half a million teachers are required to meet the RTE norms onpupil-teacher ratio. The demand in the secondary education segmentwill also see commensurate increase.

?About 18 percent of all Governments education spending or about1.12% of GDP is spent on higher education today.

?The 12th Five Year Plan targets to raise it to 25% and 1.5%

respectively, which means an additional allocation of about Rs.25,000crore to higher education.

?Private participation in the higher education will also continue toexpand, especially in Management, Medicine and Technologysegments. Similar increased private participation will be seen in theexpanding pre-school sector and skill development initiatives. The Pre-school education market is set to reach US$ 1 billion mark by 2012against US$ 750 million at present.

?The upgradation of Industry Training Institutes/ Industry TrainingCenters to launch and scale up technology specialisations across allVocational Training Institutes is also expected to increase under newPublic Private Partnership initiatives.

?The newly setup IIMs, IITs, IIITs, IISERs and Central Universities are ona recruitment spree along with the existing institutions. This coupledwith increased Government focus on research is expected to result insignificant reverse brain drain, also aided by current adverse economicconditions 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 newacademic session, generally between January and June period. This isalso reflected in the June September 11 employment figures for thesector.

With the Right to Education (RTE) Act 2009 having come into effect

9,839,200 9,860,800 9,881,500

Estimated Employment Estimated Employment Estimated Employment

June 2011 September 2011 December 2011




< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years



Customer Service

Senior Management

Campus

HR Agency

Referrals

Social Media

Others


11.5% 11.0%

by experience

by function

by hiring sources

30%

12%

4%

3%

30%

23%

36%

62%

8%15%

16%

44%

17%


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EnergyBetween June and September 2011, theEnergy sector has added 7,500jobs and isexpected to add another 6,600 jobsbetween October and December 2011.

?

July 2011 (152.1). Compared to January 2011 (146.4), it hasincreased 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 halfof Indias installed capacity, the countrys power scenario will continueto be under stress as the shortage of coal persists. The power ministryhas estimated that the country has lost four billion units (bu) of powergeneration between April and September this financial year, due to asevere dip in coal supply from Coal India and its arms. According toPower ministry estimates, Coal India and its associates may achieveonly 310 million tonnes of production in 2011-12 against a target of347 mt. Coal Ministry is also yet to sign fuel supply agreement for the25,000 MW capacity power plants that came up in last three years.The situation has been further aggravated by volatile internationalprices of coal.

?Similar to coal, gas based power generation units are also facingsupply shortages, leading to lower plant load and stagnation incapacity expansion. Considering the share of Thermal power in Indiasoverall power generation capacity, the stunted growth of this sub-sector may be responsible for the lower than expected employmentgeneration in the Energy sector.

?The government plans to add 100,000 MW during the 12th Plan tothe current capacity of 174,000MW. However, Indias track record inadding power generating capacity is poor. In the five years to 2007,the country added 20,950MW of capacity, against a target of41,110MW. The situation remains grim for the 11th Plan target, withthe 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. Successfulimplementation of expansion plans can result in generatingsubstantial number of jobs.

?There will be increased demand for trained manpower for operatingthe smart grid technologies, systems and related software, as powerindustry 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 thesenew equipments.

The IIP for Electricity declined in August 2011 (149.4) compared to

910,100 917,600 924,200






< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years



Customer Service

Senior Management

Campus

HR Agency

Referrals

Social Media

Others


16.0% 15.0%

by experience

by function

by hiring sources

51%

27%

1%

2%

26%

20%

22%

51%

6%12%

14%

32%

36%


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HealthcareBetween June and September 2011, theHealthcare sector has added 60,400 jobsand is expected to add another 58,700jobs between October and December

2011.?

years and has grown from a unorganized to organized sector. Thecontributing factors for this shift are growing Indian economyresulting in increasing disposable income level of people, increasedpenetration of health insurance sector, demographic shift, expandingmedical tourism, increased prevalence of lifestyle related diseases andenhanced healthcare awareness, at least among the urbanpopulation.

?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 fromCorporates. Most of the existing players have announced expansionplans and many of large companies with no or very little healthcarepresence have announced huge investment plans in HealthcareDelivery.

?There is also a boom in the diagnostic industries along with thegrowth in hospital infrastructure in the country. New investorsincluding the MNCs are playing a key role in increasing theemployment base in the sector, through expanding their presence inTier I and Tier II cities.

?There have been a number of noteworthy initiatives taken up by theIndian government to boost the Healthcare sector in the country like100% FDI under automatic route and National Rural Health Mission.Expansion is also taking place in the number of medical colleges andtheir intake capacity. Six new AIIMS category medical institutions arecoming up along with upgradation of many existing colleges.

?This sector, however, suffers from bottlenecks in manpower supply, asthe current number of seats in medical and nursing colleges iswoefully short of requirement, as reflected in the low doctor topopulation ratio. This is expected to limit growth potential in theshorter term.

?An ASSOCHAM study has estimated the current worth of Indianmedical tourism industry at around Rs.4.5 billion with about 0.85

million foreign patients annually getting treated here. These numbersare expected to grow to Rs. 10.8 billion with 3.2 million foreignpatients expected to visit India by 2015. However, with the currentglobal economic downturn, the inflow of foreign patients in the June-September 11 period has been lower than the trend.

?The increase in the price of pharmaceutical products has led to thereview of brownfield FDI policy in the sector.

The Healthcare Industry has witnessed a paradigm shift in the last five

3,492,700 3,553,100 3,611,800






< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years



Customer Service

Senior Management

Campus

HR Agency

Referrals

Social Media

Others


17.0% 16.4%

by experience

by function

by hiring sources

36%

18%

2%

4%

29%

28%

33%

50%

7%

19%

12%

57%

5%


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HospitalityBetween June and September 2011, theHospitality sector has added 48,400 jobsand is expected to add another 41,600jobs between October and December

2011.?

World Travel and Tourism Council, the tourism industry in India isexpected to expand from its current size of Rs. 4.4 billion to Rs. 21billion in 2022.

?Over the period of January to July 2011, the Hotel and Tourism sectorhas seen an FDI inflow of Rs. 2.26 billion.

?Foreign Tourist Arrivals (FTAs) during the Month of September 2011was 0.40 million as compared to FTAs of 0.37 million in September2010 and 0.33 million in September 2009. FTAs during the periodJanuary-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 of2009. The FTA in 2016 is expected to be 11.24 million.

?With expanding Indian economy, this number will be further bolsteredby business travelers. The domestic tourism sector also enjoyed ahealthy growth rate of 10.7% in terms of number of visitors (740.21million) in 2010 calendar year. Number of Domestic Tourist Visits(DTVs) in 2016 is projected to be at 1451.46 million.

?Growing attractiveness of India as a destination for medical tourismwill also provide significant support. An ASSOCHAM study hasestimated the number of foreign patients visiting India to grow to 3.2million by 2015 from around a million currently.

?However, despite high growth potential of the hospitality sector overthe medium to long term, it may face glitches in the short termaffecting the potential for (permanent) employment generation.

?In the face of uncertainty in demand, this sector is also seeingincreased hiring of need based temporary hands and outsourcing.Seasonal factors like monsoon and flood also dampened the mood inthe June-Sept 11 quarter.

?According to a National Skill development Corporation study on skillgap in hospitality sector, the overall employment by 2022 in theTourism Industry (in Hotels and Restaurants and Tour Operators) isestimated to be about 7.2 million persons, generating employmentopportunity for 2.6 million more people.

?Bulk of the requirement though will be in the unorganized sector. Alarge portion of the demand for human resource will occur in theareas of Front Office Staff, F&B Services and Kitchen, Housekeepingstaff, Ticketing and Sales, Tour Guides.

This is one of the booming sectors of Indian economy. According to

6,205,600 6,254,000 6,295,600






< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years



Customer Service

Senior Management

Campus

HR Agency

Referrals

Social Media

Others


15.0% 13.3%

by experience

by function

by hiring sources

22%

7%

1%

3%

36%

28%

41%

62%

14%

33%

3%

39%

11%


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IT & ITeSInformation 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 jobsbetween October and December 2011.

?

technology, 2011 unveiled here on Friday by Telecom & IT Minister,Mr. Kapil Sibal, aims at increasing the revenues of the IT & ITeSindustry to US $300 billion by 2020. Presently, with the exportscontributing to the majority of the $80 billion earnings, the policyproposed is expected to boost the growth of indigenous demandsand market. The proposed policy also aims at formulating fiscal andother incentives to attract investment in this sector in Tier II and IIIcities.

?The computer software and hardware jointly with telecommunicationsector has seen an FDI inflow of Rs. 7.68 billion, accounting for11.81% of total FDI inflow in the corresponding period. This issignificantly lower than the long term (Apr 00 Jul11) trend share of15.96%.

?NASSCOM is of the view, that the recent developments in the US andEurope would not affect the Indian IT industry much and it will pursuea growth path owing to augmented domestic demands andexpanding in emerging markets like Brazil and Russia. On thecontrary, ASSOCHAM expects the macro fiscal insecurity in US andEurope having an adverse impact on the markets, considering theirshare in exports of Indias $80 billion IT industry. This reflects somedegree of uncertainty among the industry players.

?This has led to many IT firms becoming cautious in their hiring. Thishas been further accentuated by the decline in attrition rates since theeconomic downturn, which has come down to 15% from 25% in thelast couple of quarters. Many of the firms are hiring based on theirimmediate project needs

?The big IT companies have also been very active in hiring freshers fromcampus early this year. But with lower attrition rates and uncertainfuture flow of new projects, the initial calculations may have gonewrong. There are reports of delay in on-boarding the new campushires, 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 leastat the junior level, for some time.

?While the sluggish global economy poses a risk to pricing and neworders, a weak rupee on the other hand, may help boost margins.There has been about 7.8% depreciation in INR against US$ in thelast 45 days and further depreciation is possible in light of continuedglobal risk aversion. If the depreciation holds, it may prove positive forIT sector companies subject to their hedging positions.

The draft national policy on information & communications

2,010,000 2,056,600 2,098,200






< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years



Customer Service

Senior Management

Campus

HR Agency

Referrals

Social Media

Others


15.6% 15.6%

by experience

by function

by hiring sources

28%

7%

2%

3%

30%

28%

40%

62%

9%

17%

12%

44%

18%


12/24

ManufacturingMachineries and Equipment

Between June and September 2011, theManufacturing of Machineries andEquipment sector has added 13,800 jobs

and is expected to add another 14,000jobs between October and December2011.

?

during last few months and the IIP is hovering around 175 pointssince April 2011. According to the latest Government release, IIPduring July-August 2011 has gone down marginally by about 5points.

?Capital Goods sector performed almost at the same level during July-August 2011, as compared to the second quarter of the year.

?The sub-sectors such as Motor Vehicles, Trailers, other TransportEquipments, Radio, Television and other Communication Equipmentshave posted high positive growth during this quarter.

?The performance of the Electrical Machineries sector remained poor.

?Increase in cost of capital has also played a dampening role for newinvestment in the sector.

?The performances of these sectors have resulted in the lower level ofjob additions as against expectations. The expectation for the nextquarter is also in the similar lines.

?The reported salary hike for lateral shifting during the third quarterwas lower than second quarter and expected to remain almost at thesame level during the next quarter.

?Overall, the hiring mood within the sector is not yet promising.

Overall, the manufacturing sector growth has remained almost similar

1,164,600 1,178,400 1,192,400






< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years



Customer Service

Senior Management

Campus

HR Agency

Referrals

Social Media

Others


13.0% 12.8%

by experience

by function

by hiring sources

23%

11%

3%

1%

27%

22%

47%

66%

5%13%

17%

49%

16%


13/24

ManufacturingNon-machinery Manufacturing

Between June and September 2011, theManufacturing of Non-machinery Productssector has added 36,500 jobs and is

expected to add another 38,300 jobsbetween October and December 2011.

?

substantially in the performance of this sector.

?The sub-sectors that performed relatively better during third quarter of2011 were basic metals, fabricated metal products, food products andbeverages etc. All these sub-sectors have posted double-digit growthduring this period.

?Amongst the poor performers were the textiles, apparels tobaccoproducts, chemical & Chemical products, paper & paper products andwood products. Many of these sectors have registered negative IIPgrowth, especially during the month of August 2011.

?The continuing higher level of inflation, interest rates, higher cost ofcapital, higher prices of raw materials and intermediate goods havefurther stifled the sentiment of this sector.

?

The festival months are expected to boost the demand during thecurrent and the next quarter and ubring some positivity.

?The sluggish growth of the sector has reflected in relatively lowerhiring activity within the sector. The estimated increase in employmentwas lower than that was expected earlier. However, the expectedgrowth rate during next quarter is marginally higher than the currentquarter in view of expected higher demand level during festival times.

Lower overall growth in the manufacturing sector is reflected

4,589,100 4,625,600 4,663,900






< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years



Customer Service

Senior Management

Campus

HR Agency

Referrals

Social Media

Others


14.2% 14.2%

by experience

by function

by hiring sources

17%

12%

2%

2%

22%

18%

59%

68%

5%13%

17%

49%

16%


14/24

Media and EntertainmentBetween June and September 2011, theMedia and entertainment sector has added30,900 jobs and is expected to addanother 32,800 jobs between October and

December 2011.?

healthy pace with over 500 Television (TV) channels and producingmore than 1,000 programs every year. Large number of productionhouses catering to film, television and the advertisement industry arean important source of employment generation in this sector.

?Convergence between entertainment, information andtelecommunication is increasingly impacting Indias overall media andentertainment industries. The draft New Telecom Policy envisages 175million broadband connections in India by 2017, and 600 million by2020, at a minimum of 2mbps download speeds.

?According to an IAMAI-IMRB joint study, mobile internet usage hasbeen witnessing a 15% growth q-o-q and the total number of userswas estimated to be at 46 million in September 2011. The access ofcontent through mobile internet is likely to accelerate further, nowwith the introduction of 3G services.

?PWC estimates the Indian Media & Entertainment industry to touch Rs1,199 billion in 2015 growing at 13.2% CAGR and the televisionindustry is expected to grow by 12.9% cumulatively over 2010-15. Itis projected to command half of the entertainment pie by 2015 with arobust growth rate of 14.5%.

?Growing popularity of the direct-to-home (DTH) services may lead to areorganization of content delivery mechanism. Increasing access tobroadband internet and mobile telephony will also provide twoalternate new platforms for content delivery.

?Over the same period, the radio sector is projected to grow at 19.2%and the Indian print media is expected to expand by 9.6%.Animation, gaming and VFX industry is expected to maintain itsgrowth pace and grow at 21.4%. Benefitting from the mobile valueadded services (VAS) market, the music industry is expected to growat 17.6% over the same period.

?A FICCI-KPMG study puts the size of the Indian Film industry in 2015at US$ 2.6 billion.

?FM radio services have become immensely popular in India. The sectoris poised for further expansion with Government approval for e-auction of licences under the third-phase expansion of FM radio. FMPhase-III will extend FM radio services to about 227 new cities, inaddition to the present 86 cities, with a total of 839 new FM radiochannels in 294 cities. It will result in coverage of all cities with apopulation of one lakh and above with private FM radio channels.

?This growth in the sector has fuelled the increase in hiring for the corefunctions like Marketing and Business Development roles withmaximum hiring happening through referrals and the social media.

The Indian Media and Entertainment industry continues to grow at a

1,413,000 1,443,900 1,476,700






< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years



Customer Service

Senior Management

Campus

HR Agency

Referrals

Social Media

Others


17.0% 17.2%

by experience

by function

by hiring sources

21%

8%

1%

4%

32%

12%

46%

76%

7%

28%

27%

35%

6%


15/24

PharmaBetween June and September 2011, thePharma sector has added 12,600 jobs andis expected to add another 12,800 jobsbetween October and December 2011.

?

over the previous year, with the total value of exports reaching up toUS$ 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 recipientsectors between April 11 and July 11 period. Out of US$ 14.54billion of FDI inflow over this period, the Pharma sector corneredalmost US$ 3.0 billion. This is a major jump considering that thecumulative FDI inflow in this sector over the period April 00 to March11 was at US$ 1.90 billion only.

?According to PwC, India is expected to join the league of top 10global pharmaceuticals markets in terms of sales by 2020 with thetotal value reaching US$ 50 billion. McKinsey suggests that ifaggressive growth strategies are implemented, it has the potential toreach US$ 70 billion by 2020 from US$ 13.1 billion in FY 2010-11.

?Industry experts suggest that almost a third of total R&D investmentby the global Pharma industry, which is estimated at US$ 40-50

billion, could be made in India over the next 10 years.?Contract Research in India is growing at an annual rate of around

20% to 25%. Clinical trials represent 65% of this market and newdrug discovery makes up the remaining 35%.

?However, there has been concern in the industry in terms ofincreasing prices of the Pharma products, especially concerningproducts of Indian Pharma companies recently acquired by MNCs. Assuch, though greenfield FDI will continue be under automatic route,brownfield investments will be allowed through the ForeignInvestment Promotion Board (FIPB) for six months, following which,such acquisitions will have to be routed through the CompetitionCommission of India. This may be a minor dampener to the otherwiserosy growth picture for the sector.

?The sector witnessed a spurt in hiring for experienced people for corefunctions and majority of the recruitments were made throughreferrals.

Indias Pharmaceutical exports increased by 26.05% in FY 2010-11

309,000 321,600 334,400






< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years



Customer Service

Senior Management

Campus

HR Agency

Referrals

Social Media

Others


15.2% 15.6%

by experience

by function

by hiring sources

39%

11%

4%

5%

24%

15%

33%

69%

2%

33%

10% 34%

21%


16/24

Real Estate andConstructionBetween June and September 2011, theReal Estate and Construction sector hasadded 30,700 jobs and is expected to add

another 26,200 jobs between October andDecember 2011.

?

population will soar to 590 million by 2030 from 340 million in 2008,stimulating a near four-fold increase in per capita income. India willneed to invest US $1.2 trillion over next 20 years to modernise urbaninfrastructure and keep pace with this growing urbanisation.

?Around 95% of Indias foreign trade by volume and 70% by value, istransported through sea. This emphasizes the contribution insustaining growth and development of the Indian economy.Government of India has put in place a National MaritimeDevelopment Programme (NMDP) encompassing 276 projects at anestimated cost of US$ 12.52 billion. Under the Maritime Agenda2020, the total capacity of all these ports is expected to reach 3,280MMT, 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 twophases of the project 14,279 km of National Highways are proposedto be upgraded to 4 or 6 lane at a total estimated cost of US$ 14.56billion. The Government of India (GoI) plans to develop 35,000 km ofhighways by 2014 under the NHDP.

?According to IATA, India's Domestic Aviation Market expansion hasbeen the strongest in the world - tripling in the past five years,making it the ninth largest aviation market in the world. As perDGCA figures, passengers carried by domestic airlines during Jan-Aug2011 were at 39.63 million, as against 33.41 million during thecorresponding period of previous year, thus registering a growth of18.6 per cent.

?India is expected to cross the 450 million mark of domestic passengersby 2020. This growth will not be limited just to the metros, but hasalready started to reach the Tier II and Tier III cities. This expansion willnecessitate an enhanced expenditure on developing infrastructure.

?The total installed power generation capacity of India in 2011 isestimated 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.

?Thus, the real estate and construction sector is predicted to seeheightened activities over a long period of time in future. However, inthe shorter term, there may be many slips between potentials andreality as many of the infrastructure projects have been either delayedorstalled.

?The inflationary pressure followed by higher interest rate has increasedthe cost, both for inputs and capital mobilisation. In case of realestate, this has also led to sharp fall in demand. This is reflected in themere 1.2% growth in the contribution of Construction sector inIndias GDP for Q1 of FY 2011-12 over corresponding quarter ofprevious year.

?Increased interest rates has brought down the demand in the housingsector, directly impacting the growth and job generation.

According to a McKinsey Global Institute study, India's urban

934,300 965,000 991,200






< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years



Customer Service

Senior Management

Campus

HR Agency

Referrals

Social Media

Others


12.7% 12.1%

by experience

by function

by hiring sources

36%

20%

1%

4%

24%

20%

39%

56%

5%

24%

17%

44%

10%


17/24

Trade includingConsumer Retail ServicesBetween June and September 2011, theTrade including CRS sector has added9,700 jobs and is expected to add another

9,900 jobs between October andDecember 2011.

?

India to grow from US$ 411.28 billion in 2011 to US$ 804.06 billionby 2015. The report has underlined factors like economic growth,population expansion, increasing wealth of individuals and rapidconstruction of organised retail infrastructure as major drivers for theoptimistic forecast figures. Food and groceries is considered to be thelargest segment in organised retail, followed by apparel, footwear andconsumer electronics.

?India has been ranked as the fourth most attractive nation for retailinvestment among 30 emerging markets, by the US-based globalmanagement consulting firm, A T Kearney, in its Global RetailDevelopment Index (GRDI) 2011.

?Research and Markets estimates Indian retail sector to account for

22% of the country's GDP (GDP) and contributes to 8% of the totalemployment.

?According to Booz and Co (India), only 6% of Indian Retail business iswith the organised retail players as of 2010. Hence, there is a greatpotential to be explored by the organized domestic players.Participation of international players will remain limited for some moretime till the FDI restrictions on retail sector are lifted.

?According to a report by research firm CB Richard Ellis India, over 6million square feet of retail mall space was added across India in thefirst six months of 2011; primarily due to aggressive expansion byorganised retailers. Along with the metros, the retailers are bettingbig on Tier-II and Tier-III cities as well. The rural market in India isattracting focus from all the major retailers in apparel, food &groceries, electronics, consumer durables and supermarketsbusinesses. Online retail segment in India is growing at an annual rateof 35%, which would take its value from US$ 429.5 million in 2011to US$ 1.5 billion in 2015.

?Despite tremendous long term growth potential, the immediate

expansion plans of the sector is adversely affected by the spiralinginflation, lower disposable income and economic downturn. The IIPfor Consumer Goods grew by 4.8% only in the April-August 2011period, compared to y-o-y growth of 8.9% in the previous year. Thisfall was mainly due to the massive fall in the production of consumerdurables.

?This downturn in prospects, as well as future uncertainty on inflationand economic growth is reflected in the lower employment growth inthe last quarter as well as lower expectation for the Sept-Dec 2011quarter.

The Business Monitor International (BMI) forecasts total retail sales in

671,500 681,200 691,100






< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years



Customer Service

Senior Management

Campus

HR Agency

Referrals

Social Media

Others


14.1% 14.8%

by experience

by function

by hiring sources

8%

14%

1%

2%

33%

18%

58%

66%

13%

25%

10%

40%

12%


18/24

Transport, Storage andCommunicationBetween June and September 2011, theTransport, Storage and Communicationsector has added 12,500 jobs and is

expected to add another 11, 300 jobsbetween October and December 2011.

?

drop in the April-August 2011 period, where mining growth hasdropped from 7.7% to 0.2% and the growth rate of manufacturinghas also dropped to 6% from 9.2% recorded for the same period lastyear. This had an adverse effect on the demand for transport services.

?At present, about 80% of the country's freight is transported by roadsand the rest by railways.

?The rise in fuel prices, price of tyres, lubricants, and even chassis alongwith higher wages for drivers have all contributed towards increasedoperations costs for road transporters, even in the face of lowerdemand.

?According to IRTFT, only 5% of fleet owners and transport firms arefollowing the norms of Transport Workers Act. This has made the

Drivers Job quite unattractive, thus resulting in huge shortage inmanpower supply. According to All India Motor Transport Congressreports, at least 15% of the truck fleet in India (around eight lakhtrucks) is grounded due to shortage of drivers.

?Indian Railways has carried 389.07 million tonnes of revenue earningfreight traffic during April-August 2011. There is an increase of 22.36million tonnes in the freight carries (total freight traffic - 366.71million tonnes) as compared to the corresponding period last year,registering an increase of 6.10%. However, the y-o-y growth rate inthe month of August decelerated significantly to 2.09%.

?Indian Shipping s Gross Registered Tonnage in FY 2010-11 hasincreased to 10.45 MT from 9.69 MT last year, growing at a rate of7.84%. The growth rate was 4.31% in the previous year. Annualincrease in the number of India registered vessels though hasremained stagnant at around 60 per year for the last three financialyears.

?Passenger traffic by air increased from 46.45 million in Apr-Jul 2010-11 to 83.13 million in the current financial year, growing 15.6% y-o-

y. Bulk of it was domestic traffic, which grew at 17.9%. Internationalpassenger traffic grew slower at 8.8% and the July 2011 growthfigure was even lower at 7.1%. With increased ATF prices anduncertain global & domestic economic condition, the growth in thissector is expected to remain subdued for some time.

?Compared to passenger traffic, the performance of air freight trafficwas rather dismal. Over the four month period of Apr-Jul 2011-12, itgrew overall at 0.7% only relative to comparable period last year. Thiswas 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%.

?All these factors have contributed towards lower employmentgeneration in transportation sector compared to what had beenexpected at the beginning of June-Sept quarter.

The IIP for both mining and manufacturing sectors has seen a sharp

2,709,500 2,722,000 2,733,300






< 1 Year

1 - 4 Years

5 - 10 years

> 10 Years



Customer Service

Campus

HR Agency

Referrals

Social Media

Others


11.5% 11.4%

by experience

by function

by hiring sources

20%

14%

3%

36%

10%

41%

76%

10%

6%

13%

69%

2%


19/24

Ahmedabad

About 3,400 new jobs are expected to be created in Ahmedabad inthe last six months of 2011. Estimated job creation in June-September 2011 quarter (Q3) was marginally higher than what was

expected at the beginning of the quarter. However, the number ofjobs to be created in the October-December 2011 months (Q4) isexpected to be significantly lower. Major contributing sectors toemployment generation in Q3 were Manufacturing - Machineries,IT/ITES and Energy.

Bangalore

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

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 thananticipated - only 15,500 new jobs were generated as against theprediction of 16,900 jobs at the beginning of the quarter. Theexpectation 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.

Delhi & NCR

Delhi & NCR saw the second highest employment creation in Q3.The actual number of additional employment created was in linewith the expectation at 27,000 jobs as 27,900 predicted. However,the pace of job creation is expected to somewhat slow down in Q4with an expected increase of 25,300 jobs. The sectors majorlycontributing to Delhis job market in Q3 were Education,Manufacturing of Machineries,Energy, Real Estate & Construction,Education, Training & Consulting.

Hyderabad

Hyderabad is the third city that experienced higher than expectedemployment generation in Q3. It generated 3,800 new jobopportunities as against the expectation of 3,500 jobs. Another

3,200 jobs are expected to be added during Q4. The sectors thatcontributed to thesuccess in Q3 were BFSI, IT/ITES and Hospitality.The low expectation for Q4 is due to theprevailing uncertainties inthe BFSI and IT/ITES sectors, the two major contributors in Q3.

Kolkata

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

Mumbai

The financial capital of India is the place where most of the newemployment opportunities are. It generated 28,500 new jobs in Q3and expects to add another 27,300 in Q4. Though these figuresmake it the job capital, in reality the numbers are significantly lowerthan the expectation of 30,000 plus quarterly job creation expectedat the beginning of Q3. The major sectors propelling it to the topplace are BFSI, IT/ITES, Energy and Hospitality.

Pune

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

city-wise employment outlook

100000

90000

80000

70000

60000

50000

40000

30000

20000

10000

0


Mumbai Delhi & NCR Chennai Kolkata Bangalore Hyderabad Pune Ahmedabad

28500 27000 15500 5500 5200 3800 2800 1800

2730025300

16600

5700 45003200 3000

1600

55800

52300

32100

11200 97007000 5800

3400


20/24

summary and conclusion

The current Ma Foi Randstad Employment Survey (MEtS) covers employment generation and other related issues such assectoral 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 onhow 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 the13 sectors covered. Overall, employment grew at 0.98% over June 2011 figures, and 40,000 lesser jobs were created thanwhat 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. GDPgrowth was lower than predicted and the toll of twin pressures of inflation and high oil price on certain sectors had started tobecome apparent. With no recovery in global economy in sight, and the pressures of inflation (which has resulted in a highinterest rate regime) and oil prices still strong, the furrows have only grown thicker. The rate sensitive sectors like Real Estateand the Automobile have started to falter with vanishing demand. And the outlook for the BFSI sector continues to begloomy. The cyclicality in demand for certain sectors like education and hospitality have also led to lower employmentnumbers.

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 itsresilience 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 longterm excess demand situation, which protects their growth potential once the immediate term glitches are conquered. In theface of economic uncertainly percolating from both domestic and international macro events, even though a deceleration injob growth rates is now being experienced, in the longer term the economy still retains the wherewithal to jump back thenumbers may be sluggish, but there is no need to press the panic button as yet.


21/24

Appendix

BFSI 939,800 954,600 966,500Education, Training and Consultancy 9,839,200 9,860,800 9,881,500

Energy 910,100 917,600 924,200Healthcare 3,492,700 3,553,100 3,611,800Hospitality 6,205,600 6,254,000 6,295,600IT & ITES 2,010,000 2,056,600 2,098,200Manufacturing of machineries and equipments 1,164,600 1,178,400 1,192,400Non-machinery Manufacturing 4,589,100 4,625,800 4,663,900Media and entertainment 1,413,000 1,443,900 1,476,700Pharma 309,000 321,600 334,400Real Estate and Construction 934,300 965,000 991,200Trade including CRS 671,500 681,200 691,100Transport, Storage and Communication 2,709,500 2,722,000 2,733,300

A1: Expected Increase in Employment across Different SectorsEstimated

EmploymentJune 2011

ExpectedEmployment

December 2011

EstimatedEmployment

September 2011

BFSI 12.2 % 9.1 %

Education, Training and Consultancy 11.5 % 11.0 %Energy 16.0 % 15.0 %Healthcare 17.0 % 16.4 %Hospitality 15.0 % 13.3 %IT & ITES 15.6 % 15.6 %Manufacturing of machineries and equipments 12.9 % 12.8 %Non-machinery Manufacturing 14.2 % 14.2 %Media and entertainment 16.9 % 17.2 %Pharma 15.2 % 15.6 %Real Estate and Construction 12.7 % 12.1 %Trade including CRS 14.1 % 14.8 %Transport, Storage and Communication 11.5 % 11.4 %

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

during July to September 2011Expected Average Increase

during October to December 2011

Banking, Financial Services and Insurances 32.1 % 49.3 % 15.7 % 2.8 %Education, training and consultancy 30.1 % 36.1 % 29.9 % 4.0 %Energy 26.2 % 21.7 % 50.8 % 1.3 %Healthcare 28.8 % 33.5 % 35.8 % 1.9 %Hospitality 36.5 % 40.9 % 22.0 % 0.6 %Information Technology and Information Technology related Services 30.4 % 39.6 % 27.9 % 2.0 %Manufacturing - Machineries and Equipment 26.7 % 47.0 % 22.8 % 3.6 %Manufacturing - Non-machinery products 21.7 % 58.5 % 17.5 % 2.3 %Media & Entertainment 31.7 % 46.0 % 21.2 % 1.1 %Pharma 23.8 % 33.2 % 39.2 % 3.8 %Real Estate and Construction 23.3 % 39.3 % 36.2 % 1.2 %Trade including Consumer retail and logistics 33.0 % 57.9 % 7.9 % 1.3 %Transport, Storage and Communication 35.8 % 41.4 % 19.5 % 3.3 %

A3: Composition of New Hires by ExperienceLess than 1 year

During July to September 2011

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

Banking, Financial Services and Insurances 10.9 % 67.9 % 19.5 % 1.8 %Education, training and consultancy 23.4 % 62.4 % 11.8 % 2.5 %Energy 20.5 % 49.7 % 18.1 % 3.8 %Hospitality 28.1 % 61.7 % 6.9 % 3.4 %Information Technology and Information Technology related Services 13.6 % 66.2 % 19.8 % 0.5 %Manufacturing - Machineries and Equipment 21.7 % 66.1 % 11.1 % 1.1 %Manufacturing - Non-machinery products 18.1 % 67.9 % 12.0 % 2.1 %Media & Entertainment 12.4 % 76.2 % 7.6 % 3.8 %Pharma 15.2 % 68.5 % 11.2 % 5.1 %Real Estate and Construction 20.2 % 56.2 % 20.2 % 3.5 %Trade including Consumer retail and logistics 18.2 % 65.5 % 14.1 % 2.3 %Transport, Storage and Communication 9.8 % 76.3 % 13.7 % 0.2 %

A4: Composition of New Hires by Functional AreasSupport functions

such asAdmin./Accounts etc.

During July to September 2011

Core activitiesincluding

Marketing andBusiness Development

Customer Servicesrelated

Higher Management


22/24

Banking, Financial Services and Insurances 4.7 % 15.9 % 48.8 % 17.3 % 13.3 %Education, training and consultancy 8.6 % 16.7 % 43.8 % 15.6 % 15.4 %Energy 6.0 % 36.0 % 32.0 % 14.0 % 12.0 %Healthcare 7.3 % 5.0 % 57.5 % 11.7 % 18.6 %Hospitality 13.3 % 10.8 % 39.2 % 3.3 % 33.3 %Information Technology and Information Technology related Serv ices 9.6 % 17.7 % 44.4 % 11.7 % 16.7 %

Manufacturing - Machineries and Equipment 7.0 % 28.7 % 30.6 % 7.6 % 26.1 %Manufacturing - Non-machinery products 11.6 % 29.2 % 24.8 % 9.2 % 25.2 %Media & Entertainment 5.5 % 5.5 % 34.58 % 26.5 % 27.9 %Pharma 2.1 % 20.8 % 33.8 % 10.0 % 33.3 %Real Estate and Construction 5.0 % 9.7 % 44.4 % 17.3 % 23.6 %Trade including Consumer retail and logistics 13.2 % 11.4 % 40.4 % 10.0 % 25.0 %Transport, Storage and Communication 2.0 % 13.0 % 69.5 % 5.5 % 10.0 %

A5: Share of Different Hiring Sources for New HiresCampus

Proportion of New Hires

HR Agency Referrals Social Media Others

Ahmedabad 1,800 1,600 3.6 % 3.3 %Bangalore 5,200 4,500 3.9 % 3.5 %Chennai 15,500 16,600 3.8 % 4.1 %Delhi & NCR 27,000 25,300 4.2 % 3.9 %Hyderabad 3,800 3,200 4.0 % 3.3 %

Kolkata 5,500 5,700 3.0 % 3.1 %Mumbai 28,500 27,300 4.0 % 3.9 %Pune 2,800 3,000 3.9 % 4.1 %

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

July - September 2011

Increase in Employment

ExpectedOctober - December 2011

EstimatedJuly - September 2011

Growth in Employment

ExpectedOctober - December 2011

Ahmedabad 13.0% 12.8 %Bangalore 14.3 % 12.9 %Chennai 14.9 % 12.7 %Delhi & NCR 15.0 % 14.4 %Hyderabad 14.5 % 13.5 %Kolkata 12.0 % 12.2 %Mumbai 14.6 % 14.1 %Pune 15.0 % 14.8 %

Ahmedabad 24.5 % 31.1 % 40.8 % 3.6 %Bangalore 17.4 % 44.1 % 37.4 % 1.1 %Chennai 32.4 % 42.4 % 24.0 % 1.2 %Delhi & NCR 35.9 % 37.2 % 24.0 % 3.0 %Hyderabad 28.2 % 47.8 % 21.5 % 2.5 %Kolkata 25.3 % 55.5 % 16.0 % 3.2 %Mumbai 27.9 % 35.7 % 35.3 % 1.0 %Pune 27.3 % 38.1 % 33.2 % 1.5 %

A8 : City-wise Share of Different Experience Brackets amongst New HiresLess than 1 year

July to September 2011

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

Ahmedabad 21.3 % 53.2 % 24.2 % 1.3 %Bangalore 14.2 % 34.3 % 49.2 % 2.3 %Chennai 15.9 % 65.2 % 17.8 % 1.1 %Delhi & NCR 15.3 % 51.8 % 30.9 % 2.0 %Hyderabad 8.5 % 45.1 % 44.2 % 2.2 %Kolkata 18.1 % 66.4 % 13.2 % 2.2 %Mumbai 21.2 % 59.1 % 18.1 % 1.6 %Pune 11.8 % 67.2 % 18.9 % 2.1 %

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

such asAdmin./Accounts etc.

July to September 2011

Core activitiesincluding

Marketing andBusiness Development

Customer Servicesrelated

Higher Management

A7: City-wise Likely Increase in Salary - Lateral Job ShiftJuly to September 2011

Average Salary Hike

October to December 2011


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about Ma Foi Randstad

Ma Foi Randstad is an international HR service provider servicing world classcompanies across the globe. Started in 1992, the company has grown into afull spectrum HR services provider for clients worldwide. It has helpedgenerate career opportunities for thousands individuals in 36 countries andhas worked for over 250 Fortune 500 organizations.

Ma Foi Randstad offers the broadest HR services portfolio ranging fromSearch, Selection, Staffing, Inhouse Services, Consulting, Outsourcing,Training and Assessment. The organization has a vast network of officesacross 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 of geographicalpresence and end-to-end capability across all HR service functions.

about Randstad

Randstad specializes in solutions in the field of flexible work and humanresources services. Our services range from regular temporary staffing andpermanent placement to inhouse, professionals, search & selection, and HRSolutions. Since acquiring Vedior in 2008, the Randstad Group is one of theleading HR services providers in the world with top three positions inArgentina, 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 fromclose to 4,200 branches and inhouse locations in 43 countries around theworld.

Randstad generated a revenue of 14.2 billion in 2010. Randstad wasfounded in 1960 and is headquartered in Diemen, the Netherlands.Randstad Holding nv is listed on the NYSE Euronext Amsterdam, whereoptions for stocks in Randstad are also traded. For more information seewww.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 sub-national level It conducts monitoring and evaluation studies, indexation and ratings, aswell as policy research.

The endeavour of this research is to use it to broaden the public policy debate to promoteliberalism and the mechanisms of the market for the stimulation of growth in India. Theextension of the competitive market mechanism of resource allocation to the economy as

a whole requires rigorous and robust understanding of institutions that will facilitate theextension. Indicus research thus focuses on the institutional capabilities as well as theregulatory 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 asHarvard, Cambridge, Stanford Universities; national and international governmentorganizations such as RBI, Finance Commission, DFID, USAID, various ministries;international organizations such as World Bank, UNICEF, UNDP; media groups such asIndia Today, Outlook, Indian Express; industry such as IKEA, Microsoft, VISA; consultingfirms such as McKinsey, BCG, E&Y; NGOs and civil society organizations such as NationalFoundation of India, Liberty Institute have been some of our key sponsors.

Indicus started in December 2000 and has since become India's premier economicsresearch firm. National and international corporate bodies, industry associations,governments, academia and media houses have used our research to better understandthe 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-fundedresearch 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 methodologygives 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 robustmethodologies, and (iii) structure of the Indian economy. Apart from quantitativeeconomic research of secondary data, Indicus conducts large scale surveys, qualitativeanalysis, indexation, forecasting, evaluation and monitoring, publishes white papers andpolicy briefs.

HR Statistical Research

We offer comprehensive research consulting that helps ourclients in informed decision making. Our team of dedicatedresearch professionals use proven research methods to gatherdata, interpret it and prepare a comprehensive and valuablereport for the client.

Some of our research services include:

?Benchmarking HR practices involves recruitment strategies,innovations in retention policies and performancemanagement systems.?India entry strategy helps global clients set shop in India. We

support clients by providing them research support forlocation, people and operations.?Factor costing is a comparative study of locations

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

assessment.

If you are looking for statistical researchassistance, please write to us at

or call us [email protected]

+91 44 61016101


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for more details please write to [email protected] call us at +91 44 61016101

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

www.mafoirandstad.com

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Employment Trends Survey-- MaFoi Consultancy 2011

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