India’s employment in Q3 2015 grew 134k as compared with the drop of 43k in Q2 2015. This signifies a break from a four straight declines in employment until Q2 2015. Sector wise, IT/business process outsourcing saw the biggest rise in employment, accounting for 43% of the total.
Metal sector and textile sector came in after the IT/business process outsourcing. In recent quarters, services sector have been underpinning employment growth rather than manufacturing sector, according to DBS Bank. Meanwhile, employment growth in non-exporting industries was firmer than in exporting industries.
The International Labour Organisation has stated that India’s official jobless rate in 2014 was 3.6%. However, according to the Centre for Monitoring Indian Economy and BSE, the country’s unemployment rate is expected to be 8.4% in the first quarter of 2016. Even though policies are made to help the formal sector, control of informal sector points that wage growth and worker protection are not enough, added DBS Bank.
