The report highlighted that only 90,840 jobs were added in FY24, a marked decline from the 3.33 lakh jobs created in the previous year. By March 2024, total employment in 1,196 companies reached 62,51,808, showing that companies are taking a cautious approach due to the changes Economic conditions.
The report stated, “There has been a slowdown in headcount growth in the sample companies to 1.5 per cent from 5.7 per cent in March 2023. In absolute terms, the increase in headcount was less than 1 lakh in FY24, while it was 3.33 lakhs in FY23.”
The report categorized sectors into “job accelerators,” “job creators,” and “job stabilizers.” Sectors such as retail and trade stood out as job accelerators, with growth rates of 19.4 percent and 16.2 percent, respectively. On the other hand, IT and textile sectors were labeled as “job destroyers,” experiencing significant job losses. workforce reductions due to staff reductions and restructuring.
The report notes that “job destroyers are a major group that saw a decline in headcount in FY24. IT and textile companies are major players in this space as they hold a considerable share of the total corporate sector headcount.”
Interestingly, the connection between sales growth and job creation seems unclear. Despite a strong economic growth rate of 8.2 percent in fiscal year 2024, many companies focused on efficiency rather than expanding their workforce. For example, IT Sector India Inc.’s report reported a modest 5.6 per cent sales growth but still reduced its workforce, suggesting that long-term business goals now influence employment decisions more than immediate sales figures. The mixed picture across industries shows the challenges faced by some sectors leading to downsizing, while others continue to grow and add jobs. The report adds, “The employment growth picture in India Inc. can be said to have been rather lacklustre when looked at at the aggregate level. The higher growth in FY23, the base effect, can only partly explain the low growth of 1.5 per cent.”
As businesses continue to adapt to the uncertain market environment, the focus on technology and efficiency is likely to play a key role in shaping future employment trends. Overall, employment growth in India Inc. remains sluggish, reflecting a cautious approach as businesses respond to changing market conditions.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.