The Hindu : National : Job outlook bleak: FICCI survey

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Monday, Nov 22, 2004

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National

Job outlook bleak: FICCI survey

By Our Special Correspondent

NEW DELHI, NOV. 21 . The employment situation in the country is unlikely to improve in the near future despitecorporate India expressing optimism over improved performance in the next six months.

The latest quarterly business confidence survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) found that a whopping 71 per cent of the responding companies said they recorded moderate to substantially better performance in the current period, compared to the last six months. On expected performance, again 71 per cent said they would be performing moderately to substantially better in the next six months.

However, the expectations of a better performance over the next six months is not likely to translate into more jobs. A large proportion of the members of corporate India said they were not planning to add to their present strength of employees.

According to FICCI, the low value of the employment index registered was primarily on account of 63 per cent of the participating companies saying that the employment level in their organisations would remain the same in the coming six months. While 25 per cent were planning to add to their workforce, 12 per cent expected a decline in the employment level in their organisations. "Both the heavy and light industry segments were circumspect in their approach toward fresh hiring, with only the services sector participants showing enthusiasm with regard to additions to their employee headcount," the survey said.

Other details of the survey indicate that 68 per cent companies expect sales to be "higher to much higher" in the next six months.

On prices, while 22 per cent saw an increase, 72 per cent said they would adhere to price maintenance. About 48 per cent expected profits to be much higher while 52 per cent expected exports to be much higher than in the last six months. Also, 44 per cent were planning much higher investments than before.

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