Auto component industry fears loss of 10 lakh jobs due to prolonged slowdown

Auto and ancillary sectors saw a 17% dip in jobs in July 2019 (Image: Reuters)

The ongoing economic slowdown has hit employment in key industries such as automobiles and ancillaries, but it’s the IT and BPO sectors which offer some silver lining to those seeking jobs. While the IT industry has been the ruling employment provider for some months now, hirings in the BPO sector too have picked up, with a marked 23% increase in the month of July. In fact, the hiring spree in these two industries will likely drive optimism for jobs in the second half of the year, according to a recent report by Naukri JobSpeak. IT and BPO industries have both surpassed the national average of 14% with IT-Software registering a 31% growth.

These industries offered most number of jobs 

Overall jobs activity in India has witnessed a double-digit growth compared to the last year at 14%. Among metro cities, most jobs came from Bangalore and Hyderabad with employment hike of 20% and 24% respectively. The highest recruitment spike was witnessed in BPO and It industry but demand for professionals has also grown in construction (4%), pharma (11%), FMCG (6%), education (17%), and Media & Entertainment (21%). Across functional areas, hiring activity for professionals in sales & business development grew by 11%.

Accounts, HR, marketing and IT hardware also saw an upsurge in hiring activity. Some of these industries have been on a continuous northward trend for several months now as far as hiring is concerned. “Barring a slowdown in recruitments during November-December 2018, the IT industry has been recording an increase,” the report said.

Auto industry hit by the slowdown

Meanwhile, the auto and ancillary industry, which is witnessing a demand slowdown, has been on a job cutting spree for months now. Auto and ancillary sectors saw a 17% dip in jobs in July 2019, compared to the previous year. The auto sector slowdown is evident now with the biggest carmaker in India — Maruti Suzuki — reporting over 30% decline in its sales.

Banking & finance has also been witnessing southward trend in hiring for close to over half a year now. Hirings in production & maintenance and banking also saw a dip in July compared to last year.

Most of the jobs came from Hyderabad and Bangalore, but other metro cities have also reported increased hiring. In Delhi/NCR, Chennai and Pune, double-digit recruitment growth has been witnessed. Mumbai also saw a considerable increase in single-digit in recruitment activity.

[“source=financialexpress”]

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