Generating jobs? Tough job. Job-creation trends distilled from two TeamLease ServicesNSE -2.41 % reports, exclusively for ET, present a grim picture for the months ahead. Key job-creating sectors are likely to see a big drop in the generation of fresh employment, thanks in part to automation.
Sectors including ecommerce, BFSI (banking, financial services and insurance) and BPO-IT-enabled services could see a drop of up to 37% in 2019-23 compared with the earlier estimates for 2018-22.
Sectors in which job creation has slowed down include marketing and advertising; agriculture and agrochemicals; telecommunications; knowledge process outsourcing; information technology; media and entertainment; and healthcare and pharmaceuticals.
TeamLease Services collated data from two of its reports — The Jobs and Salaries Primer, 2019, and Employment Outlook Report, HY1, 2019-20. The numbers include both permanent and temp jobs.
“The four-year job creation estimates we compute indicate that long-term job creation for most sectors will dip unless employers and policymakers take proactive measures to counter the impending effects of AI/roboticsbased automation,” said Rituparna Chakraborty, executive vice president, TeamLease.
In the short term, there has been an appreciable rise in the Net Employment Outlook for the April-September period with 95% of the employers surveyed indicating an inclination to raise hiring during these six months, she added.
The silver lining is ‘new age skills’. Employers are rewarding those with such niche skills handsomely. Those with relatively older skills are seeing lower salary growth, according to the reports.