Industrial sector to become net hirer in Q4
By
siliconindia | Tuesday, 03 November 2009, 08:02 IST

Chennai: After sharp job cuts in the first half of 2009, the industrial sector is set to become a net hirer in the Q4 (October-December). Also, an improving employment outlook predicts well for private consumption demand.
According to the Reserve Bank's industrial outlook survey, collated by Nomura Financial Advisory, a net 8.8 percent of firms surveyed expects to increase employment in the Q4 of 2009, a sharp improvement from around 5.1 percent in the Q2, when a larger net share of firms expected to reduce, rather than increase employment.
Except textiles, all industries are expected to increase their employment levels in the Q4 because of an expected increase in demand. A weak export demand continues to impact textiles industry.
The report said that at 8.8 percent in the October-December quarter, the 'net response' on employment is still below the peak of around 18-20 percent seen in early 2008, but it is comparable to employment conditions in late 2005.
"An improving employment outlook also bodes well for private consumption demand in quarters ahead, and could partly offset the drag from lower rural demand this fiscal year. Improved employment conditions would also help to lay a solid foundation for sustainable consumption demand," said Sonal Varma, Analyst, Nomura.
Hewitt Associates, a global HR consultant, said that there would be a good competition for attracting talent in the days to come. "Things are much better on employment scene. We expect upwards trends in hiring to gain further momentum, both lateral and middle levels. The sectors like telecom, pharma and IT are showing signs of recruitment," said Nitin Sethi, Business Leader (Consulting), Hewitt Associates.