Strikes, rate hikes to cost 2 lakh jobs: Ma Foi

Updated on: Friday, October 21, 2011

Labour unrests such as the one at Maruti Suzuki India's Manesar plant and the Reserve Bank's high interest rate regime to tame inflation would result in a deficit of over two lakh jobs this year, says a study.

The industry in India would fall short of two lakh jobs due to various reasons compared to what was projected, MD and CEO of HR consultant Ma Foi and Randstad, E Balaji said.

He said about 16 lakh jobs were expected to be added this year and till the first half (of this financial year) 7.04 lakh jobs were created.

In the third quarter (during July and September) 3.46 lakh jobs were created and during fourth quarter 3.26 lakh jobs were expected to be created.

"There could be a difference in jobs at 2.29 lakh," Balaji told reporters here.

He said the study was conducted across 13 sectors in eight cities and over 600 companies participated in it.

The study covered various sectors and each of them was expected to have a difference in the projected number of recruitments, and the number actually achieved.

On labour issues, Balaji said, "In the manufacturing sector alone, industrial climate in some parts of the country like industrial unrests, (and the) rising cost of funds were the main reasons for dampening the growth."

Of late, for instance, workers at the Manesar plant of Maruti Suzuki India have been on strike for about two weeks, demanding reinstatement of about 1,200 casual workers.

They are also demanding that the 44 permanent workers, who were suspended after a settlement agreement signed on October 1 to end a 33-day-long standoff, are taken back.

The manufacturing sector was estimated to add 68,400 jobs during January to September, but it created only 43,600 jobs during the period, the study said.

Though the mood was optimistic across all sectors early this year, on proposed recruitment plans across companies, Balaji said there has been a slowdown in the recruitment due to reasons like interest rate hikes.

However, he said two sectors healthcare and the non-machinery manufacturing are expected to register a decent growth.

Among the cities that had topped in job creation were Delhi and NCR at 82,800 during January to September, Mumbai at 81,600 and Chennai at 46,300.

Mumbai led the list by adding 28,500 jobs, followed by Delhi and NCR at 27,000 and Chennai at 15,500.

In the next two months, Mumbai is expected to create 27,300 jobs, Delhi and NCR about 25,300 and Chennai about 16,600, he said.

Strikes, rate hikes to cost 2 lakh jobs: Ma Foi

More Education news