New Delhi, May 4 – Finance, real estate, IT, banks and healthcare are some of the sectors which have performed better than the industry total in terms of employment, said Bank of Baroda in a report.
“Sectors such as IT, finance and banking have been the fast growing which provide support to other business either through funding or meeting operational requirements.”
These sectors continued to remain fully operational even during the lockdown period and hence added to the employment stream.
Concerns that had employment linked with production/operations had to go in for downsizing especially when it was not possible to pay salaries due to plants being closed down or services being banned.
In FY21, healthcare and FMCG witnessed growth in employment as turnover growth was high, the report said.
On the contrary, employment in sectors such as crude oil, telecom and capital goods has moderated, on account of falling production.
CAGR growth in employment for the past 5 years has been just 1.9 per cent against real GDP CAGR growth of 3.5 per cent during this same period.
In absolute terms, number of employees increased only marginally from 54.5 lakh in March 2016 to
59.8 lakh in March 2021.
There is a clear pinch in employment due to Covid induced slowdown which reflected especially
in March 2021 which went down from 60.3 lakh in March’ 20 to 59.8 lakh in March’ 21.
Notably, March’21 is the only period where actual employment number has fallen in these past six years.