Employment Outlook 2012 - India

8/12/2019 Employment Outlook 2012 - India

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EMPLOYMENTOUTLOOK 2012

INDIA


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Over the next 10 to 20 years, the

already large portion of the populationwithin the working-age cohort (62% in2005), will continue to expand further,implying a signicant increase in thesupply of labor. India will likely addclose to 250 million workers to thelabor pool between 2005 and 2025.

Furthermore, there are nearly 30 millionyoung people putting themselves through

more education in the hope of beingable to access better jobs. The numberof young people in secondary andtertiary education is at least 55 million.

Estimates indicate that India needs at least55 million additional jobs by 2015 to maintainthe current ratio of employed people tototal population at 39%. This would be

nearly twice the jobs created during 2005-

2010, according to a report from CRISILResearch, an independent research house.

The Indian economy projects it will create87.37 million new jobs by 2015, accordingto a report by the Associated Chambersof Commerce & Industry (Assocham).

The most signicant growth will comefrom the manufacturing sector, which willadd 32% (27.88 million) of the new jobs.Trade will be next with 24.24 million jobs,following construction with 15.13 million.Tourism-related employment, informationtechnology (IT) and IT-enabled services(ITeS), and nancial services will also grow.

In the longer term, India is aimingto create 100 million jobs in themanufacturing sector by 2020.

Indias labor force isforecast to expandtremendously in thelong-term. With the worldssecond-largest populationof 1.2 billion, India alreadyhas tremendous potential interms of labor resources.

INDIA

POPULATION

UNEMPLOYMENT

2012: 1.26 B 2016: 1.32 B

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2012: 9.7% 2016: 8.7%

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Source: IHS Global Insight


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INDIA

GOVERNMENT ACTION TO

ADDRESS SKILL SHORTAGES:

EDUCATION: The country has sto upskill 500 million people by The most signicant part of the pto create a large talent pool throuModular Employable Skills (MEmain objective of the scheme is temployable skills to school leaveexisting workers, ITI graduates,

IMMIGRATION: The country haremoved the quota on employmevisas, in favor of requiring a minannual salary for foreign nationanew requirement is aimed at attronly highly-skilled foreign talen

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KEY INDUSTRIES

AUTOMOTIVE By 2016 the size of the Indian automobile industry is expected to grow by 13%, to reach USD 120-159 billion. Passenger vehicle sales and production is expected to grow by 14 to 16%

over 2011 to 2021, reaching over 9 to 10 million units annually. The auto component industry has shown a consistent growth rate of about 20%

since 2000 and the rate is expected to remain consistent until 2015. The Indian auto industry is projected to be short 300,000 skilled personnel

by 2020 across functions including R&D and manufacturing. According to industry experts, India is poised to become the third

largest car market by 2020 after the US and China.ENERGY Indias emerging green jobs sector holds out the promise of 10.5 million jobs by 2020

as investments in energy efciency and renewable energy technologies soar. The wind sector in India predicted to be worth USD 13.1 billion in 2020

and could create between 150,000 to 250,000 jobs. The solar industry, predicted to be worth USD 7.0 billion, could generate between

117,000 to 235,000 jobs by 2020 and small hydro and biomass sectors are expectedto be worth USD 5.9 billion and USD 7.0 billion respectively in 2020.

FINANCIAL

SERVICES

The Indian banking industry is poised to mark USD 28.5 billion by

2025 from the asset size of USD 1.4 billion in 2010. Banks are venturing into new avenues such as wealth management, private banking, doorstep

banking, credit cards, investment advisory services and various nancial products. Indias insurance industry is projected to reach USD 350-400 billion in terms of premium income by 2020.


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INDIA

KEY INDUSTRIES CONTINUED

HEALTHCARE The Indian healthcare industry is witnessing growth at a rapid pace and it is expected the sector willreach USD 75 billion in 2012, USD 150 billion by the year 2017, and USD 238.8 billion by 2020.

IT The Indian market for IT products and services is expected to consolidate its growth achievedin 2010 and increase from USD 19.7 billion in 2010 to USD 41.2 billion by 2015.

India is poised to become the hub for Engineering Process Outsourcing (EPO), with its market size estimatedto touch USD 30 billion annually by 2015, attracting 25% of the USD 70 billion global EPO industry.

The number of tech jobs in India continues to soar, with the three largest information-technology services companies planning to add tens of thousands of workers.

The Indian Staf ng Federations eight key members predicted that the demand for contractstafng by tech providers will go up by 40% to 45% between 2012 and 2014.

PHARMA/

BIOTECH/R&D

The Pharmaceuticals industry is projected to grow at a CAGR of 10 to 20% to reach a valuebetween USD 50 and 74 billion by 2020 from the 2009 levels of USD 12.6 billion.

The Indian diagnostic market is projected to grow at a CAGR of more than 22% between 2010 and 2012. It has been estimated that the biotech industry is poised to target a total turnover of USD 8.6 bil lion by the end of

2015 (from USD 2.9 in 2010) which would be possible if there will be a growth rate of about 30% year on year basis. India constitutes around 8% of the worlds pharmaceutical production and is expected

to be a top 10 global pharmaceuticals markets in terms of sales by 2020.

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ABOUT KELLY

Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforcesolutions. Kelly offers a comprehensive array of outsourcing and consultingservices as well as world-class stafng on a temporary, temporary-to-hire and

direct-hire basis. Serving clients around the globe, Kelly provides employmentto more than 550,000 employees annually. Revenue in 2011 was $5.6 billion.

Visitwww.kellyservices.com and connect with us on Facebook , LinkedIn, &Twitter .

SOURCES

IHS Global InsightIndia must be aware of the dangers posed by jobless growth, The Guardian, 07/14/2011.India needs 55 million more jobs by 2015: CRISIL, The Hindu, 08/16/2011.India plans manufacturing policy to boost job creation, The Economic Times, 08/19/2011.The future rede ned: Asia Paci c at an in ection point. PwC. 2011.Global Talent Risk Seven Responses. World Economic Forum. 2011.Market Analysis: APAC Talent Shortages. Kelly Services Marketing Information. July 2011.

Industry Pro les. DataMonitor. November 2011.EIUs 2011 IT Industry Competitiveness IndexSeven APAC Economies In Top 20. AsianScientist.com. September 27, 2011.The Skill Development Landscape In India And Implementing Quality Skills Training. ICRA Management Consulting Services Limited. August 2010.India: Authorities Eliminate Employment Visa Quota. www.totallyexpat.com. October 2010.Putting Higher Education to Work: Skills and Research for Growth in East Asia. The World Bank. 2012.Tech Job Growth in India and the US, MarketWatch, 09/02/2011.Indian auto industry to witness major changes in a decade of growth & opportunities, suggests Ernst & Young report, Ernst & Young, 01/10/2012.Exploring Top 10 Business Sectors in India, PR Log, 08/04/2010.Top Sectors In India To Invest In 2011-2012 From The Economy Of India In Indian Stock Market, www.asliaq.org/.Clean energy sector in India to create 10.5 million jobs by 2012, Development Channel, 05/10/2011.Temps the in-thing in IT companies, The Times of India, 01/27/2012.
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Employment Outlook 2012 - India