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Home arrow Auto component arrow Teamlease releases Employment Outlook Report: Oct-Dec
Teamlease releases Employment Outlook Report: Oct-Dec Print E-mail
Written by Arjun   
Wednesday, 10 October 2007
Chennai: TeamLease Services Private Limited, India’s largest Staffing Company, today released its latest Employment Outlook Report for the period between Oct – December 2007 (QIV).

 The TeamLease Employment Outlook report for the quarter indicates a temporary dip in hiring needs over the next three months with very few sectors like ITES and Manufacturing & Engineering sectors showing positive signs. Key Findings of the Report

    * The overall net employment outlook for the quarter beginning October 2007 has declined by 6% as compared to the previous quarter, indicating a temporary decrease in hiring needs for the next three months.
    * New Delhi and Bangalore have shown an increase in net employment outlook by 6% and 3% respectively. Net employment remains constant across Pune and Hyderabad, while Mumbai, Kolkata, Chennai and Ahmedabad have shown a marginal decline.
    * The net employment outlook index points of 78% and net business outlook of 81% for the quarter beginning Oct ’07 is the lowest among all the four quarters in the current calendar year.
    * While all the sectors have shown a decline in net business outlook for the current quarter, New Delhi is the only city that has shown a significant increase of 12% in the net business outlook.
    * ITES and Manufacturing & Engineering services sector have shown an increase of 5% and 2% in employment outlook while Financial Services, Infrastructure, IT, Retail, Media and FMCG have shown a marginal decline in employment outlook for Q4. Newly added Telecom sector has shown the 2nd highest hiring index.
    * Retail, Media & FMCG sector has shown increase of 1% in business outlook while all other sectors have either remained constant or shown a marginal decline. New Delhi is the only city that shows a significant increase (12%) in business outlook for the current quarter.
    * Bangalore and Hyderabad are the only two cities showing gradual increase in employment growth in more than two sectors.
    * Four out of five persons hired are in metro cities. Tier I cities (population between 20-40 lakhs) have shown decrease in hiring as compared to Tier II cities (population between 10-20 lakhs). Hiring levels from rural areas (towns with population less than 0.5 lakhs) is the lowest.
    * Recruitment for Marketing and Production functions are the highest (20% & above), while the lowest are for HR and Administration (8% each).
    * During the past quarter, Kolkata and Bangalore had highest average attrition rates of 19% and 17% respectively whereas Chennai and Pune had the lowest at 2% and 5% respectively.
    * Over the past one year, attrition rates in Kolkata and New Delhi were the highest at 28% and 23% respectively.
    * Over the past quarter, Infrastructure sector has seen the highest attrition rate at 13% closely followed by Manufacturing & Engineering services, Retail, Media & FMCG and IT at 12%.

 According to Mr Sampath Shetty, Vice President, TeamLease Services Pvt Ltd, ‘The business confidence and employment hiring have hit an all time low. With the margins in the IT sector already under pressure over last few quarters, this has coupled with unprecedented appreciation of the rupee of an all time high. With the cost of HR capital in the IT sector being the highest about 40%, this has impacted hiring’.

 Mr Shetty further adds, “HR resource management coming in good use has the IT sector rationalizing the workforce to optimal resourcefulness. The US sub prime fiasco has cautioned the BFSI sector market approach in terms of market penetration and future hiring. The interest rates going north have only further slowed down the consumer credit off take. However, we see the insurance sector hiring bullish over next two quarters. The Manufacturing and Engineering sector has been stable overall and will continue to do so. We see a slowdown in the infrastructure sector due to the investment slowdown over last one quarter; this may be constraining the Indian economy from macro perspective.”

CITY HIGHLIGHTS    

Bangalore (current Oct – Dec 2007)
- Infrastructure and Manufacturing & Engineering show an increase of 3%
- Over the past quarter, Bangalore had an average attrition rate of 17%, second only to Kolkata at 19%    

Mumbai (current Oct – Dec 2007)
- Mumbai shows a decline in the manufacturing and engineering sector by seven points, infrastructure by four points and financial services by nine points

Pune (current Oct – Dec 2007)
- Manufacturing & Engineering sector is the major contributor of employment growth in Pune, with an increase of 42 index points to 64, highest in the country    

Kolkata (current Oct- Dec 2007)
- Manufacturing & Engineering has shown an increase of 19 percent to 36 index points

Ahmedabad (current Oct – Dec 2007)
- Manufacturing & Engineering sector growth is the second highest in the country at 63 index points, an increase of 50% in comparison with the previous quarter    

Chennai (current Oct – Dec 2007)
- Chennai registers highest employment outlook growth in the country in the Manufacturing & Engineering segment at 26 index points
 
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