The Hindu : Business : Ma Foi estimates 30 % drop in fresh job creation

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Thursday, Nov 13, 2008
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Business

Ma Foi estimates 30 % drop in fresh job creation

Special Correspondent

Hospitality, IT, ITeS, real estate sectors may be hit

K. Pandia Rajan

CHENNAI: An employment survey conducted by Ma Foi Management Consultants, a human resources services provider, has predicated a 30 per cent dip in the creation of fresh jobs in the organised sector of the Indian domestic market during 2008 in the wake of the global financial meltdown.

In January this year, the Ma Foi Employment Survey 2008 had predicated that over 10.25 lakh jobs would be created in the organised sector during 2008. The survey was conducted among 1,000 companies across 22 sectors.

According to its findings, most companies have adopted a wait-and-watch method before taking any decision on fresh recruitments for 2009. Most of them were not sure whether the hiring could reverse or accelerate in the coming months.

Addressing a press conference here on Wednesday, K. Pandia Rajan, Managing Director, Ma Foi Group and Randstad India, said the survey found that sectors such as hospitality, IT, ITeS and real estate could be hit due to a combination of global financial meltdown and other factors. He said large companies were gearing to slash new hiring. However, it found that lay-offs were the least preferred option by these companies. He said the study also indicated that employees benefit would take a hit in the BFSI (banking, financial services and insurance) and IT sectors. However, the saviour for this segment proved to be the public sector and government undertakings. This would also save the employment growth in the BFSI sector. The survey anticipated a drop of 28 per cent in the salary structure across sectors. The survey, however, found that the health and pharma sectors remained completely unaffected by the current uncertainty.

Mr. Pandia Rajan said the survey found three lakh ‘unplaced’ jobs in the system. If skill development was taken to its logical end, these could be filled.

He said Ma Foi had bagged an assignment to handle the rehabilitation and capacity development of people who have been displaced on account of the creation of special economic zone (SEZ). Ma Foi had announced the integration of Team4U, a staffing company.

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