Overall job growth rate slips to 3.5% in FY 2020: CARE Ratings Report

According to the CARE (Credit Analysis and Research Limited) Ratings Report, the employment growth rate has declined to 3.5% in the Financial Year 2020 from 3.8% in the previous fiscal year.

However, the total number of jobs has increased to 50.02 lakh from 48.32 lakh. As per the newly released report, in FY20, 1.70 lakh jobs were added, while the net addition was 1.76 lakh in Financial Year 2019.

Headcounts percentage in companies:

• As per the report even though 1.70 lakh jobs have been added in FY20, in the same year as many as 321 companies have reduced their headcounts by 1.13 lakh compared to 272 companies doing so by 1.18 lakh in FY 2019.

• In the Financial year 2020, the top 10 companies have added 1.41 lakh to their headcounts of which four each were in IT and banks and two in NBFC.

• According to the report, nine companies had the headcount of above one lakh, of which four were in the IT sector, one each in auto, NBFC, and miscellaneous sector, and two in banking.

• Seven companies had the headcount of each between 50,000 and one lakh and 17 had between 25,000 and 50,000.

• A total of 33 companies with a headcount of each above 25,000 accounted for 57% of the total employment.

Percentage of employment in the industries:

Four industries in terms of the sector accounted for around 61% of jobs, led by banking (22 percent), IT (23 percent), finance (7 percent), and auto (9 percent).

Textile, which was at one time the leading employer came fifth in the hierarchy with a share of 2.4%. Ten industries have seen a decline in the headcounts.

Growth in employment or headcount:

In terms of the growth in headcount or employment, 11 of the 33 industries have witnessed the growth of the above the sample average of 3.5%.

This included finance, banking, electricals, FMCG, IT, trading, consumer durables, chemicals, retail, iron & steel, and insurance.