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Corporate India’s job creation drops to 3.8% in FY18: Care Ratings
Oct-19-2018

Confirming worries of jobless growth in India, Credit rating agency Care Ratings in its latest report has stated that job creation by corporate India dropped to 3.8 percent in 2017-18 from 4.2 percent growth achieved in 2016-17, with jobs in smaller firms being hit the hardest. It pointed out that the moderation in employment growth is reflective of the proposition that higher economic growth is weakly translating into higher job creation.

Based on an analysis of over 1,600 corporates, the report noted that smaller companies, with net sales of less than Rs 500 crore, have showed contraction in employment growth, while larger companies, with over Rs 500 crore sales, had a positive employment growth in FY18. It also said that with a 14 percent growth, the finance sector led the pack in job creation, followed by retail (13.05 percent), construction (9.6 percent), infrastructure (9 percent) and ratings (8 percent). On the negative growth front, it indicated that telecom topped the chart with a 7.6 percent decline in job creation, followed by education and training registering a 5.3 percent dip.

According to the report, from a cost perspective, the overall employee cost came at 8.3 percent in FY18, while the average employee cost rose 4.3 percent. It also said that just like growth in total permanent employees has seen a moderation in FY18 over FY17, both employee cost and average employee cost also witnessed a moderation in FY18 over FY17.


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