NEW DELHI: India managed to add an estimated 1.14 million jobs in 2010, even as the global economic crisis swept into new geographies, said a report by staffing solutions company TeamLease Services.
The million plus jobs that the country added are equal to as many jobs added in America in the last 10 years. "Hiring sentiments have risen steadily as businesses have put increasing faith in a resilient economy," the report added.
It further added the net employment expansion over the past five years was a million jobs - the differential of 22 million job additions among the male population and shrinkage of 21 million jobs among the female population.
"Following this startling finding by NSSO and the initial dismissive reactions by policy makers, the cutback is being interpreted as increased incidence of a back-to-school phenomenon among the younger age groups and especially among the female population," the report said.
This means that an otherwise under-educated, under-employable workforce has sought to go back to formal education mode and are likely to reenter the labour market as better qualified supply. Which, the report said, is good news. "The bad news though, is labour policy makers are not able to explain an incremental, 1 million, job creation in as many as five years," it added.
However, the number of poor in India has not come down despite a near 10% income growth. "India is one of the fastest growing and one of the more resilient economies, yet it fails to bring down the number of poor from a stagnant 300 million," the report stated .
India lost about 4.91 lakh jobs since 2008 in the global meltdown. At a 6% rate of job loss, the unorganized sector lost far more jobs compared with the 0.3% job loss rate in the organized sector. "Sectors such as garment exports that employ a blue collar workforce numbering millions bore the brunt of this loss,' it said.
It also said the country needs to invest an approximate 10% of its GDP back into equipping its workforce to actually reap the famed Demographic Dividend and also significantly reform the education-vocation system.
"While nearly 50 million unemployed people are to be immediately put to work there is a dire need to stop looking in the rear view mirror and formulate policies based on current and forecasted labour demand, in the medium term. Feeding the services sector with graduate and post-graduate level, employable talent is an imperative," the report pointed.
Said Sangeeta Lala, co-founder & senior VP, TeamLease Services, "While policy makers were not looking, job demand patterns have morphed into a mature and diverse requirement of skills and knowledge. The demand pie includes new age clusters of services- and knowledge-intensive jobs within its expanded envelope - quite the global growth trend. New sub-sectors have emerged and many existing industry sectors have graduated to a higher plane of operation that requires knowledge-based talent."