Job creation dips in small towns: ASSOCHAM

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SME Times News Bureau | 02 Nov, 2009
Job creation dipped by 12.1 percent in India's tier III cities in the first seven months this fiscal, indicating that the benefits of the government's stimulus measures are yet to reach such areas, according to an industry lobby survey.

Job opportunities in the tier I and II cities grew 5.71 percent and 29.58 percent respectively during the April-October period, said the survey conducted by the Associated Chambers of Commerce and Industry of india (ASSOCHAM).

"However, in tier III cities, job creation dipped by 12.1 percent in first seven months," it said.

Around 321,294 jobs have been created in the private sector during the period in the country, ASSOCHAM said.

Of this, big cities have bagged 73.47 percent jobs and tier II cities cornered 18.83 percent, while the tier III cities' share stood at a mere 7.7 percent.

Among the tier I cities, Delhi with the National Capital Region included and Mumbai recorded highest share in employment generation with 34.06 percent and 13.48 percent respectively.

But as compared to April-October, 2008, the National Capital Region registered 23.42 percent decline in job creation, whereas Mumbai saw a 3.28 percent growth.

Among the tier II cities, Pune and Ahmedabad reported highest growth, while Vadodara, Pondicherry and Ankleshwar are the leading job creators among tier III cities.

According to the survey, the export and manufacturing-based sectors remained in the red, while the banking and insurance sectors witnessed a job growth of 20.51 percent and 37.41 percent respectively.

The IT sector, which commands a 30.02 percent share in the total employment generation, registered a decline of 7.84 percent during the period, said ASSOCHAM.