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FICCI concerned over slow employment generation
New Delhi, Feb 22: Even as India Inc said it `feels good` over growth prospects in the next 18 months, employment generation will play spoil sport with only 21 per cent of 504 companies committing themselves to increase headcount in the next six months.
New Delhi, Feb 22: Even as India Inc said it 'feels good' over growth prospects in the next 18 months, employment generation will play spoil sport with only 21 per cent of 504 companies committing themselves to increase headcount in the next six months.
FICCI has expressed concern over the issue, but its Business Confidence Survey for Q3 of this fiscal, speaks of a constant "unwillingness" on the part of corporates to increase people on their payrolls.
The survey states that the slow down in performance of the heavy industry sector has hit employment generation. The huge capacities in this sector are almost full and only when the sector goes ahead with brown field and green field projects any improvement in employment condition could be expected, FICCI's Secretary General Amit Mitra said.
"Though we are glad that the heavy industry sector has reported a slowing down of performance and their huge capacities are almost full, we are concerned about employment generation," he said, adding hopes for employment opportunities now rests with the light industry and services sectors which were progressing fast (services - 88 points in Q3, 2003-04 against 82 points in Q2 of same fiscal and 74 points in the same quarter of last fiscal).
Only 21 per cent said they would prefer a 'higher to much higher' employment in the next six months.
As many as 50 per cent cited cost considerations as the main deterrent to adding to their work force. In a competetive environment they need to control costs to maintain profits and employee cost was one of the largest cost components. Bureau Report
The survey states that the slow down in performance of the heavy industry sector has hit employment generation. The huge capacities in this sector are almost full and only when the sector goes ahead with brown field and green field projects any improvement in employment condition could be expected, FICCI's Secretary General Amit Mitra said.
"Though we are glad that the heavy industry sector has reported a slowing down of performance and their huge capacities are almost full, we are concerned about employment generation," he said, adding hopes for employment opportunities now rests with the light industry and services sectors which were progressing fast (services - 88 points in Q3, 2003-04 against 82 points in Q2 of same fiscal and 74 points in the same quarter of last fiscal).
Only 21 per cent said they would prefer a 'higher to much higher' employment in the next six months.
As many as 50 per cent cited cost considerations as the main deterrent to adding to their work force. In a competetive environment they need to control costs to maintain profits and employee cost was one of the largest cost components. Bureau Report