Indian state owned companies like SBI and Coal India cut jobs, deepening the crisis
A workforce analysis of listed companies reveals that the job loss in public sector was one of the "worst in the recent times", a report said. In contrast to an increase of 9.2 per cent headcount in private sector, the public sector saw a decline of 2.6 per cent in FY19.
The two biggest listed public sector employers,
"The prominence of public-sector companies in the overall job pie continues to shrink. Up to FY07, publicly-listed firms comprised more than 50 per cent of the total listed companies' workforce, but that has now come down to 25 per cent," the report said.
On the other hand, services remains the driver at 8.2 per cent YoY growth in FY19, while manufacturing job creation too remained weak at 0.3 per cent.
CLSA said that the job growth among listed companies in FY19 was 4.1 per cent YoY for a comparable set of 238 companies, rising from 1.4 per cent grow th in FY18. "This was a three-year high. If we add the three large outsourcing job service providers, then the growth rises to 6 per cent," the report said.
"IT job growth was strong at 9 per cent in FY19 compared with flat growth in FY18. IT companies under our analysis have added 0.1m jobs. Outsourced job service providers grew their workforce by an impressive 18 per cent YoY in FY19.
"Also, the sectoral breakup of the 6 per cent growth is skewed towards the outsourced job services and IT sector, which contributed to nearly 80 per cent of the net jobs created in the listed space. Thus, for every five jobs created, four were by IT and outsourced companies," it said.
"Public financials, which constitute around one-sixth of the total base of employees under our analysis, has seen a decline of 2 per cent in employee headcount.
"IT and financials employ more than 50 per cent of workforce in listed universe more than half of the headcount is employed in just two sectors: financials and IT. Financials employ 28 per cent of the total workforce," the report added.