Job creation in corporate sector slows in FY24 to 1.5%
Mumbai: Employment growth in the corporate sector decelerated to 1.5 percent in FY24 from 5.7 percent in FY23, with only 90,840 new jobs created, compared to 3,33,000 in the previous fiscal year, according to a report released by Bank of Baroda on Wednesday.
“The employment growth scene in India Inc was quite lacklustre when looked at the aggregate level. Higher growth in FY23, due to the base effect, can only partly explain this low growth,” the report noted.
The report attributed the slowdown to the fact that FY23 was the first year after the pandemic when both voluntary and involuntary staff displacement occurred, resulting in higher employment growth as business activities picked up during that period.
“The same necessity was not felt in FY24, resulting in a lower growth rate,” it noted.
The report highlighted that the slowdown in employment growth is attributed to the fact that FY23 was the first year following the pandemic, during which there was a mix of voluntary and involuntary staff displacement, resulting in a surge in employment as activities resumed.
Sector-wise, the report indicated that retail (19.4 percent) and trading (16.2 percent) led job creation, followed by infrastructure (15.8 percent), real estate (13.6 percent), and iron and steel (12.1 percent). On the other hand, several sectors, including hospitality (-11.9 percent), logistics (-11.8 percent), business services (-6.3 percent), and textiles (-5 percent), experienced a reduction in their workforce during the year.
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